House File 690 - Introduced
HOUSE FILE
BY JOCHUM
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the sales and use taxes on the operation of
2 bingo games.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 1655HH 81
5 mg/cf/24
PAG LIN
1 1 Section 1. Section 423.2, subsection 4, unnumbered
1 2 paragraph 2, Code 2005, is amended to read as follows:
1 3 The tax imposed under this subsection covers the total
1 4 amount from the operation of games of skill, games of chance,
1 5 and raffles, and bingo games as defined in chapter 99B, and
1 6 musical devices, weighing machines, shooting galleries,
1 7 billiard and pool tables, bowling alleys, pinball machines,
1 8 slot=operated devices selling merchandise not subject to the
1 9 general sales taxes and covers the total amount less amounts
1 10 awarded as prizes from the operation of bingo games as defined
1 11 in chapter 99B, on the total amount from devices or systems
1 12 where prizes are in any manner awarded to patrons and upon the
1 13 receipts from fees charged for participation in any game or
1 14 other form of amusement, and generally upon the sales price
1 15 from any source of amusement operated for profit, not
1 16 specified in this section, and upon the sales price from which
1 17 tax is not collected for tickets or admission, but tax shall
1 18 not be imposed upon any activity exempt from sales tax under
1 19 section 423.3, subsection 78. Every person receiving any
1 20 sales price from the sources described in this section is
1 21 subject to all provisions of this subchapter relating to
1 22 retail sales tax and other provisions of this chapter as
1 23 applicable.
1 24 Sec. 2. Section 423B.5, unnumbered paragraph 1, Code 2005,
1 25 is amended to read as follows:
1 26 A local sales and services tax at the rate of not more than
1 27 one percent may be imposed by a county on the sales price
1 28 taxed by the state under chapter 423, subchapter II. A local
1 29 sales and services tax shall be imposed on the same basis as
1 30 the state sales and services tax or in the case of the use of
1 31 natural gas, natural gas service, electricity, or electric
1 32 service on the same basis as the state use tax and shall not
1 33 be imposed on the sale of any property or on any service not
1 34 taxed by the state, except the tax shall not be imposed on the
1 35 sales price from the sale of motor fuel or special fuel as
2 1 defined in chapter 452A which is consumed for highway use or
2 2 in watercraft or aircraft if the fuel tax is paid on the
2 3 transaction and a refund has not or will not be allowed, on
2 4 the sales price from the rental of rooms, apartments, or
2 5 sleeping quarters which are taxed under chapter 423A during
2 6 the period the hotel and motel tax is imposed, on the sales
2 7 price from the sale of equipment by the state department of
2 8 transportation, on the sales price from the sale of self=
2 9 propelled building equipment, pile drivers, motorized
2 10 scaffolding, or attachments customarily drawn or attached to
2 11 self=propelled building equipment, pile drivers, and motorized
2 12 scaffolding, including auxiliary attachments which improve the
2 13 performance, safety, operation, or efficiency of the equipment
2 14 and replacement parts and are directly and primarily used by
2 15 contractors, subcontractors, and builders for new
2 16 construction, reconstruction, alterations, expansion, or
2 17 remodeling of real property or structures, and on the sales
2 18 price from the sale of a lottery ticket or share in a lottery
2 19 game conducted pursuant to chapter 99G, and on the sales price
2 20 derived from the operation of bingo games as defined in
2 21 chapter 99B, and except the tax shall not be imposed on the
2 22 sales price from the sale or use of natural gas, natural gas
2 23 service, electricity, or electric service in a city or county
2 24 where the sales price from the sale of natural gas or electric
2 25 energy are subject to a franchise fee or user fee during the
2 26 period the franchise or user fee is imposed. A local sales
2 27 and services tax is applicable to transactions within those
2 28 incorporated and unincorporated areas of the county where it
2 29 is imposed and shall be collected by all persons required to
2 30 collect state sales taxes. However, a person required to
2 31 collect state retail sales tax under chapter 423, subchapter V
2 32 or VI, is not required to collect local sales and services tax
2 33 on transactions delivered within the area where the local
2 34 sales and services tax is imposed unless the person has
2 35 physical presence in that taxing area. All cities contiguous
3 1 to each other shall be treated as part of one incorporated
3 2 area and the tax would be imposed in each of those contiguous
3 3 cities only if the majority of those voting in the total area
3 4 covered by the contiguous cities favors its imposition.
3 5 Sec. 3. Section 423E.3, subsection 2, Code 2005, is
3 6 amended to read as follows:
3 7 2. The tax shall be imposed on the same basis as the state
3 8 sales and services tax or in the case of the use of natural
3 9 gas, natural gas service, electricity, or electric service on
3 10 the same basis as the state use tax and shall not be imposed
3 11 on the sale of any property or on any service not taxed by the
3 12 state, except the tax shall not be imposed on the sales price
3 13 from the sale of motor fuel or special fuel as defined in
3 14 chapter 452A which is consumed for highway use or in
3 15 watercraft or aircraft if the fuel tax is paid on the
3 16 transaction and a refund has not or will not be allowed, on
3 17 the sales price from the rental of rooms, apartments, or
3 18 sleeping quarters which are taxed under chapter 423A during
3 19 the period the hotel and motel tax is imposed, on the sales
3 20 price from the sale of equipment by the state department of
3 21 transportation, on the sales price from the sale of self=
3 22 propelled building equipment, pile drivers, motorized
3 23 scaffolding, or attachments customarily drawn or attached to
3 24 self=propelled building equipment, pile drivers, and motorized
3 25 scaffolding, including auxiliary attachments which improve the
3 26 performance, safety, operation, or efficiency of the
3 27 equipment, and replacement parts and are directly and
3 28 primarily used by contractors, subcontractors, and builders
3 29 for new construction, reconstruction, alterations, expansion,
3 30 or remodeling of real property or structures, and on the sales
3 31 price from the sale of a lottery ticket or share in a lottery
3 32 game conducted pursuant to chapter 99G, and on the sales price
3 33 derived from the operation of bingo games as defined in
3 34 chapter 99B, and except the tax shall not be imposed on the
3 35 sales price from the sale or use of natural gas, natural gas
4 1 service, electricity, or electric service in a city or county
4 2 where the sales price from the sale of natural gas or electric
4 3 energy are subject to a franchise fee or user fee during the
4 4 period the franchise or user fee is imposed.
4 5 EXPLANATION
4 6 Presently, the state sales tax is imposed on the gross
4 7 amount derived from the operation of bingo games. This bill
4 8 imposes the tax only on the gross amount less the amounts
4 9 awarded as prizes. In addition, the bill exempts the amount
4 10 derived from bingo games from the local option city and county
4 11 sales tax and the local option school district sales tax.
4 12 LSB 1655HH 81
4 13 mg:rj/cf/24