Senate File 106 - Introduced
SENATE FILE
BY CONNOLLY
(COMPANION TO HF 75 BY JOCHUM)
Passed Senate, Date Passed House, 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 1671SS 82
5 mg/gg/14
PAG LIN
1 1 Section 1. Section 423.2, subsection 4, unnumbered
1 2 paragraph 2, Code 2007, 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, the total amount less amounts awarded as
1 10 prizes from the operation of bingo games as defined in chapter
1 11 99B, and on the total amount from devices or systems where
1 12 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 2007,
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 sale of equipment by the state
2 5 department of transportation, on the total amount derived from
2 6 the operation of bingo games as defined in chapter 99B, or on
2 7 the sales price from the sale or use of natural gas, natural
2 8 gas service, electricity, or electric service in a city or
2 9 county where the sales price from the sale of natural gas or
2 10 electric energy is subject to a franchise fee or user fee
2 11 during the period the franchise or user fee is imposed. A
2 12 local sales and services tax is applicable to transactions
2 13 within those incorporated and unincorporated areas of the
2 14 county where it is imposed and shall be collected by all
2 15 persons required to collect state sales taxes. All cities
2 16 contiguous to each other shall be treated as part of one
2 17 incorporated area and the tax would be imposed in each of
2 18 those contiguous cities only if the majority of those voting
2 19 in the total area covered by the contiguous cities favors its
2 20 imposition. In the case of a local sales and services tax
2 21 submitted to the registered voters of two or more contiguous
2 22 counties as provided in section 423B.1, subsection 4,
2 23 paragraph "c", all cities contiguous to each other shall be
2 24 treated as part of one incorporated area, even if the
2 25 corporate boundaries of one or more of the cities include
2 26 areas of more than one county, and the tax shall be imposed in
2 27 each of those contiguous cities only if a majority of those
2 28 voting on the tax in the total area covered by the contiguous
2 29 cities favored its imposition.
2 30 Sec. 3. Section 423E.3, subsection 2, Code 2007, is
2 31 amended to read as follows:
2 32 2. The tax shall be imposed on the same basis as the state
2 33 sales and services tax or in the case of the use of natural
2 34 gas, natural gas service, electricity, or electric service on
2 35 the same basis as the state use tax and shall not be imposed
3 1 on the sale of any property or on any service not taxed by the
3 2 state, except the tax shall not be imposed on the sales price
3 3 from the sale of motor fuel or special fuel as defined in
3 4 chapter 452A which is consumed for highway use or in
3 5 watercraft or aircraft if the fuel tax is paid on the
3 6 transaction and a refund has not or will not be allowed, on
3 7 the sales price from the sale of equipment by the state
3 8 department of transportation, on the total amount derived from
3 9 the operation of bingo games as defined in 99B, or on the
3 10 sales price from the sale or use of natural gas, natural gas
3 11 service, electricity, or electric service in a city or county
3 12 where the sales price from the sale of natural gas or electric
3 13 energy is subject to a franchise fee or user fee during the
3 14 period the franchise or user fee is imposed.
3 15 EXPLANATION
3 16 Under current law, the state sales and use tax is imposed
3 17 on the gross amount derived from the operation of bingo games.
3 18 This bill imposes the tax only on the gross amount less the
3 19 amounts awarded as prizes. In addition, the bill exempts the
3 20 total amount derived from bingo games from the local option
3 21 city and county sales tax and the local option county school
3 22 infrastructure sales tax.
3 23 LSB 1671SS 82
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