House File 2229
HOUSE FILE
BY RANTS
(COMPANION TO LSB 6367XS
BY IVERSON)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for an annual tax levy on real property used in
2 gaming operations and providing an effective date.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6367YH 80
5 ec/pj/5
PAG LIN
1 1 Section 1. Section 99D.14, subsection 6, Code 2003, is
1 2 amended to read as follows:
1 3 6. Real property used in the operation of a racetrack or
1 4 racetrack enclosure which is exempt from property taxation
1 5 under another provision of the law, including being exempt
1 6 because it is owned by a city, county, state, or charitable or
1 7 nonprofit entity, may be subject to real property taxation by
1 8 any taxing district, including the state, in which the real
1 9 property used in the operation of the racetrack or racetrack
1 10 enclosure is located. To subject such real property to
1 11 taxation, the taxing authority of the a local taxing district
1 12 shall pass a resolution imposing the tax and, if the
1 13 resolution is passed prior to September 1, 1997, shall notify
1 14 the local assessor and the owner of record of the real
1 15 property by September 1, 1997, preceding the fiscal year in
1 16 which the real property taxes are due and payable. The
1 17 assessed value shall be determined and notice of the assessed
1 18 value shall be provided to the county auditor by the local
1 19 assessor by October 15, 1997, and the owner may protest the
1 20 assessed value to the local board of review by December 1,
1 21 1997. For resolutions passed on or after September 1, 1997,
1 22 the taxing authority shall notify the local assessor and owner
1 23 of record prior to the next assessment year and the valuation
1 24 and appeal shall be done in the manner and time as for other
1 25 valuations. For the state, the real property shall be subject
1 26 to taxation as provided in section 444.24. Property taxes due
1 27 as a result of this subsection shall be paid to the county
1 28 treasurer in the manner and time as other property taxes. The
1 29 county treasurer shall remit the tax revenue to those taxing
1 30 authorities imposing the property tax under this subsection.
1 31 Real property subject to tax as provided in this subsection
1 32 shall continue to be taxed until such time as the taxing
1 33 authority of the taxing district repeals the resolution
1 34 subjecting the property to taxation or the state repeals the
1 35 statute subjecting the property to taxation by the state.
2 1 Sec. 2. NEW SECTION. 444.24 GAMING OPERATIONS REAL
2 2 PROPERTY == ANNUAL LEVY.
2 3 1. Gaming operations real property shall be assessed an
2 4 annual levy pursuant to the requirements of this section and
2 5 the amounts collected shall be deposited in the general fund
2 6 of the state.
2 7 2. In each year the director of revenue shall fix the rate
2 8 to be levied per square foot of gaming operations real
2 9 property necessary to raise the amounts provided in subsection
2 10 3 for general state purposes. The director of revenue shall
2 11 certify the rate so fixed to the auditor of each applicable
2 12 county.
2 13 3. a. The amounts required to be raised from the levy on
2 14 gaming operations real property that is used by a licensee as
2 15 gaming floor shall be determined as follows:
2 16 (1) If the target resident population of the county where
2 17 the gaming operations real property is located is less than
2 18 one hundred thousand, the amount to be raised shall be an
2 19 initial payment of twenty=five million dollars, and five
2 20 million dollars for the fiscal year beginning July 1, 2004,
2 21 and each fiscal year thereafter.
2 22 (2) If the target resident population of the county where
2 23 the gaming operations real property is located is one hundred
2 24 thousand or more, but less than three hundred thousand, the
2 25 amount to be raised shall be an initial payment of eighty
2 26 million dollars, and twenty million dollars for the fiscal
2 27 year beginning July 1, 2004, and each fiscal year thereafter.
2 28 (3) If the target resident population of the county where
2 29 the gaming operations real property is located is three
2 30 hundred thousand or more, the amount to be raised shall be an
2 31 initial payment of ninety=five million dollars for the fiscal
2 32 year beginning July 1, 2004, and twenty=five million dollars
2 33 each fiscal year thereafter.
2 34 b. The amount levied on the gaming operations real
2 35 property that is not used by the licensee as gaming floor
3 1 shall be determined as follows:
3 2 (1) If the target resident population of the county where
3 3 the gaming operations real property is located is less than
3 4 one hundred thousand, the amount to be raised shall be an
3 5 initial payment of one hundred thousand dollars, and thirty=
3 6 three thousand two hundred fifty dollars for the fiscal year
3 7 beginning July 1, 2004, and each fiscal year thereafter.
3 8 (2) If the target resident population of the county where
3 9 the gaming operations real property is located is one hundred
3 10 thousand or more, but less than three hundred thousand, the
3 11 amount to be raised shall be an initial payment of three
3 12 hundred fifty thousand dollars, and one hundred thirty=three
3 13 thousand five hundred dollars for the fiscal year beginning
3 14 July 1, 2004, and each fiscal year thereafter.
3 15 (3) If the target resident population of the county where
3 16 the gaming operations real property is located is three
3 17 hundred thousand or more, the amount to be raised shall be an
3 18 initial payment of two million three hundred thousand dollars,
3 19 and one million dollars for the fiscal year beginning July 1,
3 20 2004, and each fiscal year thereafter.
3 21 4. For purposes of this section:
3 22 a. "Gaming operations real property" means real property
3 23 owned or occupied by a licensee under chapter 99D or 99F and
3 24 used in or related to the operation of gambling games, racing,
3 25 or pari=mutuel wagering. "Gaming operations real property"
3 26 does not mean hotels, restaurants or bars, convention centers,
3 27 theaters, or meeting rooms.
3 28 b. "Target resident population of the county" means the
3 29 total population, based upon the most recent federal decennial
3 30 census, of the greater of the population of the county in
3 31 which the gaming operations real property is located or the
3 32 population of each county within this state included in the
3 33 federally designated metropolitan statistical area that
3 34 includes the county in which the gaming operations real
3 35 property is located, as designated as of January 1, 2004.
4 1 Sec. 3. TRANSITION PROVISIONS == GAMING OPERATIONS REAL
4 2 PROPERTY ANNUAL LEVY. Notwithstanding any provision of law to
4 3 the contrary, for purposes of collecting the initial payments
4 4 of the annual levy pursuant to section 444.24, the director of
4 5 revenue shall, within thirty days of the effective date of
4 6 this Act, fix the rate to be levied upon the square footage of
4 7 the gaming operations real property sufficient to raise the
4 8 amounts specified as the initial payments in section 444.24,
4 9 and shall notify in writing the owner of the real property of
4 10 the rate to be applied and the tax to be assessed. The owner
4 11 of the real property shall pay the assessed tax within thirty
4 12 days of receiving notice from the director of revenue.
4 13 Sec. 4. EFFECTIVE DATE. This Act, being deemed of
4 14 immediate importance, takes effect upon enactment.
4 15 EXPLANATION
4 16 This bill provides for an annual property tax levy on
4 17 gaming operations real property.
4 18 Code section 99D.14, subsection 6, which permits taxing
4 19 authorities to impose property taxes on real property used in
4 20 the operation of a racetrack, is amended to specifically
4 21 provide for the state to impose property taxes pursuant to the
4 22 requirements of new Code section 444.24 as created in the
4 23 bill.
4 24 New Code section 444.24 provides for an annual tax levy on
4 25 gaming operations real property with receipts from the levy to
4 26 be deposited in the general fund of the state. The bill
4 27 provides that the director of revenue shall fix the levy rate
4 28 to be imposed on the real property necessary to raise the
4 29 amounts specified and shall then certify the rate to the
4 30 applicable county auditor. The bill provides that the amounts
4 31 to be raised shall depend on the target resident population of
4 32 the county where the gaming operations real property is
4 33 located and on whether the gaming operations real property is
4 34 gaming floor or not.
4 35 "Gaming operations real property" is defined by the bill as
5 1 real property owned or occupied by a licensee under Code
5 2 chapter 99D or 99F and used in or related to the operation of
5 3 gambling games, racing, or pari=mutuel wagering but does not
5 4 include hotels, restaurants or bars, convention centers,
5 5 theaters, or meeting rooms.
5 6 The bill also defines "target resident population of the
5 7 county" as the greater of the population of the county in
5 8 which the racetrack is located or the population of each
5 9 county in this state, including the county in which the
5 10 racetrack is located, that is included in a federal
5 11 metropolitan statistical area.
5 12 The bill provides that if the population where the gaming
5 13 operations real property is located is less than 100,000, the
5 14 amount to be raised on real property that is gaming floor
5 15 shall be an initial payment of $25 million, and $5 million for
5 16 fiscal year 2004=2005 and each fiscal year thereafter. In
5 17 addition, the amount to be raised on real property that is not
5 18 gaming floor shall be an initial payment of $100,000, and
5 19 $33,250 for fiscal year 2004=2005 and each fiscal year
5 20 thereafter.
5 21 If the population where the gaming operations real property
5 22 is located is 100,000, but less than 300,000, the amount to be
5 23 raised on real property that is gaming floor shall be an
5 24 initial payment of $80 million, and $20 million for fiscal
5 25 year 2004=2005 and each fiscal year thereafter. In addition,
5 26 the amount to be raised on real property that is not gaming
5 27 floor shall be an initial payment of $350,000, and $133,500
5 28 for fiscal year 2004=2005 and each fiscal year thereafter.
5 29 The bill provides that if the population where the gaming
5 30 operations real property is located is more than 300,000, the
5 31 amount to be raised on real property that is gaming floor
5 32 shall be an initial payment of $95 million, and $25 million
5 33 for fiscal year 2004=2005 and each fiscal year thereafter. In
5 34 addition, the amount to be raised on real property that is not
5 35 gaming floor shall be an initial payment of $2.3 million, and
6 1 $1 million for fiscal year 2004=2005 and each fiscal year
6 2 thereafter.
6 3 The bill includes a transition provision for the initial
6 4 payment of the annual levy. The bill provides that the
6 5 director of revenue shall notify the owner of the property of
6 6 the tax to be assessed within 30 days of the effective date of
6 7 the bill. The bill then provides that the owner has 30 days
6 8 to pay the tax following notice.
6 9 The bill takes effect upon enactment.
6 10 LSB 6367YH 80
6 11 ec/pj/5.2