House File 2314 - Introduced
HOUSE FILE
BY PETTENGILL
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act exempting certain sales by qualified organizations
2 representing veterans from sales tax.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5268YH 82
5 ak/sc/5
PAG LIN
1 1 Section 1. Section 423.2, subsection 4, Code Supplement
1 2 2007, is amended to read as follows:
1 3 4. a. A tax of five percent is imposed upon the sales
1 4 price derived from the operation of all forms of amusement
1 5 devices and games of skill, games of chance, raffles, and
1 6 bingo games as defined in chapter 99B, and card game
1 7 tournaments conducted under section 99B.7B, that are operated
1 8 or conducted within the state, the tax to be collected from
1 9 the operator in the same manner as for the collection of taxes
1 10 upon the sales price of tickets or admission as provided in
1 11 this section. Nothing in this subsection shall legalize any
1 12 games of skill or chance or slot=operated devices which are
1 13 now prohibited by law.
1 14 b. The tax imposed under this subsection covers the total
1 15 amount from the operation of games of skill, games of chance,
1 16 raffles, and bingo games as defined in chapter 99B, card game
1 17 tournaments conducted under section 99B.7B, and musical
1 18 devices, weighing machines, shooting galleries, billiard and
1 19 pool tables, bowling alleys, pinball machines, slot=operated
1 20 devices selling merchandise not subject to the general sales
1 21 taxes and on the total amount from devices or systems where
1 22 prizes are in any manner awarded to patrons and upon the
1 23 receipts from fees charged for participation in any game or
1 24 other form of amusement, and generally upon the sales price
1 25 from any source of amusement operated for profit, not
1 26 specified in this section, and upon the sales price from which
1 27 tax is not collected for tickets or admission, but tax shall
1 28 not be imposed upon any activity exempt from sales tax under
1 29 section 423.3, subsection 78 or 78A. Every person receiving
1 30 any sales price from the sources described in this section is
1 31 subject to all provisions of this subchapter relating to
1 32 retail sales tax and other provisions of this chapter as
1 33 applicable.
1 34 Sec. 2. Section 423.3, Code Supplement 2007, is amended by
1 35 adding the following new subsection:
2 1 NEW SUBSECTION. 78A. a. The sales price from sales or
2 2 rental of tangible personal property, or services rendered, by
2 3 a qualified organization representing veterans where the
2 4 profits from the sales or rental of the tangible personal
2 5 property or services rendered are used for the benefit of the
2 6 same qualified organization representing veterans.
2 7 b. This exemption applies to the sales price from games of
2 8 skill, games of chance, raffles, and bingo games as defined in
2 9 chapter 99B, but only to the extent the profits from the
2 10 sales, rental, or services are used by or donated to the
2 11 qualified organization representing veterans.
2 12 c. For the purposes of this subsection, "qualified
2 13 organization representing veterans" means any licensed
2 14 organization representing veterans, which is a post, branch,
2 15 or chapter of a national association of veterans of the armed
2 16 forces of the United States, is a federally chartered
2 17 corporation, is exempt from federal income taxes under section
2 18 501(c)(19) of the Internal Revenue Code as defined in section
2 19 422.3, has an active membership of not less than twelve
2 20 persons, and does not have a self=perpetuating governing body
2 21 and officers.
2 22 EXPLANATION
2 23 This bill exempts sales by veterans organizations from
2 24 state sales tax. The bill also provides that the 5 percent
2 25 tax on games of skill, games of chance, raffles, and bingo
2 26 games is exempted when the games are operated by a qualified
2 27 organization representing veterans and the money from the
2 28 games is donated to the veterans organization.
2 29 The definition of a "qualified organization representing
2 30 veterans" is a licensed organization, which is a post, branch,
2 31 or chapter of a national association of veterans of the United
2 32 States armed forces, is a federally chartered corporation, is
2 33 exempt from federal income taxes, has more than 12 active
2 34 members, and does not have a self=perpetuating governing body
2 35 and officers.
3 1 LSB 5268YH 82
3 2 ak/sc/5