Bill Text: IA HSB719 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act relating to tax rates on receipts from gambling games.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2024-02-26 - Subcommittee recommends passage. Vote Total: 2-0. [HSB719 Detail]

Download: Iowa-2023-HSB719-Introduced.html

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House Study Bill 719 - Introduced
HOUSE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON KAUFMANN)
A BILL FOR
An Act relating to tax rates on receipts from gambling games.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 99F.11, subsection 2, Code 2024, is
amended to read as follows:
2. The tax rate imposed each fiscal year on any amount of
adjusted gross receipts over three million dollars shall be as
follows:
a. If the licensee is an excursion gambling boat or gambling
structure , :
(1) For fiscal years beginning prior to July 1, 2024,
twenty-two percent.
(2) For the fiscal year beginning July 1, 2024, and ending
June 30, 2025, twenty-one percent.
(3) For the fiscal year beginning July 1, 2025, and ending
June 30, 2026, twenty percent.
(4) For the fiscal year beginning July 1, 2026, and ending
June 30, 2027, and for each fiscal year thereafter, nineteen
percent.
b. If the licensee is a racetrack enclosure conducting
gambling games and another licensee that is an excursion
gambling boat or gambling structure is located in the same
county, then one of the following rate rates , as applicable:
(1) If the licensee of the racetrack enclosure has not been
issued a table games license during the fiscal year or if the
adjusted gross receipts from gambling games of the licensee
in the prior fiscal year were less than one hundred million
dollars , :
(a) For fiscal years beginning prior to July 1, 2024,
twenty-two percent.
(b) For the fiscal year beginning July 1, 2024, and ending
June 30, 2025, twenty-one percent.
(c) For the fiscal year beginning July 1, 2025, and ending
June 30, 2026, twenty percent.
(d) For the fiscal year beginning July 1, 2026, and ending
June 30, 2027, and for each fiscal year thereafter, nineteen
percent.
(2) If the licensee of the racetrack enclosure has been
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H.F. _____
issued a table games license during the fiscal year or prior
fiscal year and the adjusted gross receipts from gambling games
of the licensee in the prior fiscal year were one hundred
million dollars or more , :
(a) For fiscal years beginning prior to July 1, 2024,
twenty-two percent on adjusted gross receipts received prior
to the operational date and twenty-four percent on adjusted
gross receipts received on or after the operational date.
For purposes of this subparagraph division , the operational
date is the date the commission determines table games became
operational at the racetrack enclosure.
(b) For the fiscal year beginning July 1, 2024, and ending
June 30, 2025, twenty-three percent.
(c) For the fiscal year beginning July 1, 2025, and ending
June 30, 2026, twenty-two percent.
(d) For the fiscal year beginning July 1, 2026, and ending
June 30, 2027, and for each fiscal year thereafter, twenty-one
percent.
c. If the licensee is a racetrack enclosure conducting
gambling games and no licensee that is an excursion gambling
boat or gambling structure is located in the same county , :
(1) For fiscal years beginning prior to July 1, 2024,
twenty-four percent.
(2) For the fiscal year beginning July 1, 2024, and ending
June 30, 2025, twenty-three percent.
(3) For the fiscal year beginning July 1, 2025, and ending
June 30, 2026, twenty-two percent.
(4) For the fiscal year beginning July 1, 2026, and ending
June 30, 2027, and for each fiscal year thereafter, twenty-one
percent.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to tax rates on receipts from gambling
games.
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H.F. _____
Under current law, if a person licensed under Code chapter
99F (licensee) is an excursion gambling boat or gambling
structure, the tax rate imposed each fiscal year on any amount
of adjusted gross receipts over $3 million is 22 percent.
Under the bill, the tax rate is decreased to 21 percent for FY
2024-2025, 20 percent for FY 2025-2026, and 19 percent for FY
2026-2027 and thereafter.
Under current law, if the licensee is a racetrack enclosure
conducting gambling games and another licensee that is an
excursion gambling boat or gambling structure is located in the
same county and the licensee of the racetrack enclosure has
not been issued a table games license during the fiscal year
or if the adjusted gross receipts from gambling games of the
licensee in the prior fiscal year were less than $100 million,
the tax rate imposed each fiscal year on any amount of adjusted
gross receipts over $3 million is 22 percent. Under the bill,
the tax rate is decreased to 21 percent for FY 2024-2025, 20
percent for FY 2025-2026, and 19 percent for FY 2026-2027 and
thereafter.
Under current law, if the licensee is a racetrack enclosure
conducting gambling games and another licensee that is an
excursion gambling boat or gambling structure is located in the
same county and the licensee of the racetrack enclosure has
been issued a table games license during the fiscal year or
prior fiscal year and the adjusted gross receipts from gambling
games of the licensee in the prior fiscal year were $100
million or more, the tax rate imposed each fiscal year on any
amount of adjusted gross receipts over $3 million is 22 percent
on adjusted gross receipts received prior to the operational
date and 24 percent on adjusted gross receipts received on
or after the operational date. Under the bill, the tax rate
is altered to 23 percent for FY 2024-2025, 22 percent for FY
2025-2026, and 21 percent for FY 2026-2027 and thereafter,
regardless of operational date.
Under current law, if the licensee is a racetrack enclosure
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H.F. _____
conducting gambling games and no licensee that is an excursion
gambling boat or gambling structure is located in the same
county, the tax rate imposed each fiscal year on any amount
of adjusted gross receipts over $3 million is 24 percent.
Under the bill, the tax rate is decreased to 23 percent for FY
2024-2025, 22 percent for FY 2025-2026, and 21 percent for FY
2026-2027 and thereafter.
Taxes collected under Code section 99F.11 on the adjusted
gross receipts from gambling games are used to support a
variety of programs and funds including the county endowment
fund; operational support grants, community cultural grants,
and regional tourism marketing of the economic development
authority; the rebuild Iowa infrastructure fund; the revenue
bonds debt service fund and revenue bonds federal subsidy
holdback fund; the water quality infrastructure fund; the Iowa
skilled worker and job creation fund; and the levee improvement
fund.
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