Bill Text: IA HSB91 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.
Spectrum: Committee Bill
Status: (Introduced) 2025-01-28 - Subcommittee: Sexton, Bloomingdale and McBurney. H.J. 135. [HSB91 Detail]
Download: Iowa-2025-HSB91-Introduced.html
House
Study
Bill
91
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
REVENUE
BILL)
A
BILL
FOR
An
Act
relating
to
state
income
tax
withholdings
on
winnings
1
from
sports
wagering,
and
including
effective
date
2
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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_____
H.F.
_____
Section
1.
Section
99F.18,
Code
2025,
is
amended
to
read
as
1
follows:
2
99F.18
Tax
on
winnings.
3
1.
All
winnings
derived
from
slot
machines
operated
4
pursuant
to
this
chapter
are
Iowa
earned
income
and
are
subject
5
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
6
winnings
for
payment
of
the
state
tax,
pursuant
to
section
7
422.16,
subsection
2
,
shall
be
remitted
to
the
department
of
8
revenue
on
behalf
of
the
winner.
9
2.
All
winnings
from
sports
wagering
authorized
under
this
10
chapter
are
Iowa
earned
income
and
are
subject
to
state
and
11
federal
income
tax
laws.
An
amount
deducted
from
winnings
for
12
payment
of
state
tax
pursuant
to
section
422.16,
subsection
2,
13
shall
be
remitted
to
the
department
of
revenue
on
behalf
of
the
14
winner.
15
Sec.
2.
Section
422.16,
subsection
2,
paragraph
d,
Code
16
2025,
is
amended
to
read
as
follows:
17
d.
For
the
purposes
of
this
subsection
,
state
income
tax
18
shall
be
withheld
on
winnings
in
excess
of
six
hundred
dollars
19
derived
from
gambling
activities
authorized
under
chapter
20
99B
or
99G
.
State
income
tax
shall
be
withheld
on
winnings
21
in
excess
of
one
thousand
dollars
from
gambling
activities
22
authorized
under
chapter
99D
.
State
income
tax
shall
be
23
withheld
on
winnings
in
excess
of
one
thousand
two
hundred
24
dollars
derived
from
slot
machines
authorized
under
chapter
25
99F
.
State
income
tax
shall
be
withheld
on
winnings
from
26
sports
wagering
authorized
under
chapter
99F
whenever
federal
27
income
tax
is
required
to
be
withheld
from
the
same
winnings
in
28
accordance
with
the
Internal
Revenue
Code.
29
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
30
2026.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
specifies
all
winnings
from
sports
wagering
are
35
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S.F.
_____
H.F.
_____
considered
Iowa
earned
income
and
subject
to
Iowa
and
federal
1
income
tax
laws.
If
sports
wagering
winnings
are
subject
to
2
federal
income
tax
withholding,
the
bill
requires
Iowa
state
3
income
tax
be
withheld
from
the
winnings.
4
The
bill
takes
effect
on
January
1,
2026.
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