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 1 30 1 31 1 32 1 33 1 34 1 35