House File 2272

                                       HOUSE FILE       
                                       BY  LUKAN


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act concerning the sales and use taxes applicable to amounts
  2    received from bingo games operated by certain tax=exempt
  3    entities.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5917HH 80
  6 ec/pj/5

PAG LIN

  1  1    Section 1.  Section 423.2, subsection 4, unnumbered
  1  2 paragraph 1, as enacted by 2003 Iowa Acts, First Extraordinary
  1  3 Session chapter 2, section 95, is amended to read as follows:
  1  4    A tax of five percent is imposed upon the sales price
  1  5 derived from the operation of all forms of amusement devices
  1  6 and games of skill, games of chance, raffles, and bingo games
  1  7 as defined in chapter 99B, operated or conducted within the
  1  8 state, the tax to be collected from the operator in the same
  1  9 manner as for the collection of taxes upon the sales price of
  1 10 tickets or admission as provided in this section.  Nothing in
  1 11 this subsection shall legalize any games of skill or chance or
  1 12 slot=operated devices which are now prohibited by law.
  1 13 However, there is imposed a tax of five percent upon the net
  1 14 receipts derived from the operation of all forms of bingo
  1 15 games, as defined in chapter 99B, operated or conducted within
  1 16 the state by an entity which is exempt from federal income
  1 17 taxation pursuant to section 501(c)(3) of the Internal Revenue
  1 18 Code where the proceeds are used for the purposes of the
  1 19 nonprofit entity.  For purposes of this subsection, "net
  1 20 receipts" means gross receipts less amounts awarded as prizes.
  1 21                           EXPLANATION
  1 22    This bill provides that the sales and use tax derived from
  1 23 the operation of bingo games by an entity which is exempt from
  1 24 federal income taxation pursuant to section 501(c)(3) of the
  1 25 Internal Revenue Code shall be on the net receipts and not
  1 26 gross receipts.  The bill provides that "net receipts" means
  1 27 gross receipts less amounts awarded as prizes.
  1 28 LSB 5917HH 80
  1 29 ec/pj/5
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