House File 663 - Introduced



                                       HOUSE FILE       
                                       BY  LUKAN


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

                                      A BILL FOR

  1 An Act relating to a sales tax exemption for bingo operations run
  2    by certain charitable organizations.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2264HH 81
  5 mg/pj/5

PAG LIN



  1  1    Section 1.  Section 423.2, subsection 4, unnumbered
  1  2 paragraph 1, Code 2005, is amended to read as follows:
  1  3    A Except as provided in section 423.3, subsection 78A, a
  1  4 tax of five percent is imposed upon the sales price derived
  1  5 from the operation of all forms of amusement devices and games
  1  6 of skill, games of chance, raffles, and bingo games as defined
  1  7 in chapter 99B, operated or conducted within the state, the
  1  8 tax to be collected from the operator in the same manner as
  1  9 for the collection of taxes upon the sales price of tickets or
  1 10 admission as provided in this section.  Nothing in this
  1 11 subsection shall legalize any games of skill or chance or
  1 12 slot=operated devices which are now prohibited by law.
  1 13    Sec. 2.  Section 423.3, Code 2005, is amended by adding the
  1 14 following new subsection:
  1 15    NEW SUBSECTION.  78A.  Sales price from sales and services
  1 16 derived from bingo games as defined in chapter 99B and
  1 17 conducted by a qualified organization as defined in section
  1 18 99B.1.
  1 19                           EXPLANATION
  1 20    This bill exempts gross receipts derived from bingo games
  1 21 that are conducted by a licensed qualified organization from
  1 22 sales tax.  A qualified organization is one that is exempt
  1 23 from federal income tax under section 501(c) of the Internal
  1 24 Revenue Code and uses the proceeds for educational, civic,
  1 25 public, charitable, patriotic, or religious uses.
  1 26 LSB 2264HH 81
  1 27 mg:rj/pj/5