Senate
File
605
-
Enrolled
Senate
File
605
AN
ACT
RELATING
TO
STATE
INCOME
TAX
WITHHOLDINGS
ON
WINNINGS
FROM
SPORTS
WAGERING,
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
99F.18,
Code
2025,
is
amended
to
read
as
follows:
99F.18
Tax
on
winnings.
1.
All
winnings
derived
from
slot
machines
operated
pursuant
to
this
chapter
are
Iowa
earned
income
and
are
subject
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
winnings
for
payment
of
the
state
tax,
pursuant
to
section
422.16,
subsection
2
,
shall
be
remitted
to
the
department
of
revenue
on
behalf
of
the
winner.
2.
All
winnings
from
sports
wagering
authorized
under
this
chapter
are
Iowa
earned
income
and
are
subject
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
winnings
for
payment
of
state
tax
pursuant
to
section
422.16,
subsection
2,
shall
be
remitted
to
the
department
of
revenue
on
behalf
of
the
winner.
Sec.
2.
Section
422.16,
subsection
2,
paragraph
d,
Code
2025,
is
amended
to
read
as
follows:
d.
For
the
purposes
of
this
subsection
,
state
income
tax
shall
be
withheld
on
winnings
in
excess
of
six
hundred
dollars
derived
from
gambling
activities
authorized
under
chapter
99B
or
99G
.
State
income
tax
shall
be
withheld
on
winnings
in
excess
of
one
thousand
dollars
from
gambling
activities
Senate
File
605,
p.
2
authorized
under
chapter
99D
.
State
income
tax
shall
be
withheld
on
winnings
in
excess
of
one
thousand
two
hundred
dollars
derived
from
slot
machines
authorized
under
chapter
99F
.
State
income
tax
shall
be
withheld
on
winnings
from
sports
wagering
authorized
under
chapter
99F
whenever
federal
income
tax
is
required
to
be
withheld
from
the
same
winnings
in
accordance
with
the
Internal
Revenue
Code.
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
2026.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
605,
Ninety-first
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2025
______________________________
KIM
REYNOLDS
Governor