Senate File 2013 - Introduced SENATE FILE 2013 BY BOLKCOM A BILL FOR An Act concerning the wagering tax rate on gambling games. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5205XS (5) 83 ec/nh

S.F. 2013 Section 1. Section 99F.11, subsection 2, Code Supplement 1 2009, is amended to read as follows: 2 2. a. On and after July 1, 2012, the tax rate imposed each 3 fiscal year on any amount of adjusted gross receipts over three 4 million dollars shall be twenty-five percent. 5 b. The Prior to July 1, 2012, the tax rate imposed each 6 fiscal year on any amount of adjusted gross receipts over three 7 million dollars shall be as follows: 8 a. (1) If the licensee is an excursion gambling boat or 9 gambling structure, twenty-two percent. the tax rate shall be 10 as follows: 11 (a) For the fiscal year beginning July 1, 2010, twenty-three 12 percent. 13 (b) For the fiscal year beginning July 1, 2011, twenty-four 14 percent. 15 b. (2) If the licensee is a racetrack enclosure conducting 16 gambling games and another licensee that is an excursion 17 gambling boat or gambling structure is located in the same 18 county, then the following rate, as applicable: 19 (1) (a) If the licensee of the racetrack enclosure has not 20 been issued a table games license during the fiscal year or if 21 the adjusted gross receipts from gambling games of the licensee 22 in the prior fiscal year were less than one hundred million 23 dollars, twenty-two percent. the tax rate shall be as follows: 24 (i) For the fiscal year beginning July 1, 2010, 25 twenty-three percent. 26 (ii) For the fiscal year beginning July 1, 2011, 27 twenty-four percent. 28 (2) (b) If the licensee of the racetrack enclosure has 29 been issued a table games license during the fiscal year or 30 prior fiscal year and the adjusted gross receipts from gambling 31 games of the licensee in the prior fiscal year were one hundred 32 million dollars or more, twenty-two percent on adjusted gross 33 receipts received prior to the operational date and twenty-four 34 percent on adjusted gross receipts received on or after the 35 -1- LSB 5205XS (5) 83 ec/nh 1/ 2

S.F. 2013 operational date twenty-five percent . For purposes of this 1 subparagraph, the operational date is the date the commission 2 determines table games became operational at the racetrack 3 enclosure. 4 c. (3) If the licensee is a racetrack enclosure conducting 5 gambling games and no licensee that is an excursion gambling 6 boat or gambling structure is located in the same county, 7 twenty-four twenty-five percent. 8 (4) This paragraph “b” is repealed July 1, 2012. 9 EXPLANATION 10 This bill increases the wagering tax on adjusted gross 11 receipts from gambling games over $3 million until reaching 25 12 percent on all facilities licensed under Code chapter 99F by 13 the fiscal year beginning July 1, 2012. 14 For excursion gambling boats, gambling structures, and 15 racetrack enclosures with gross receipts less than $100 16 million, current law provides that the wagering tax is 22 17 percent. The bill increases the tax rate by one percentage 18 point each fiscal year beginning July 1, 2010, until reaching 19 25 percent for these facilities on July 1, 2012. 20 For racetrack enclosures with gross receipts of $100 million 21 or more or racetracks in a county without an excursion gambling 22 boat or gambling structure, current law provides that the 23 wagering tax is 24 percent. The bill increases the wagering 24 tax on these facilities to 25 percent for each fiscal year 25 beginning on and after July 1, 2010. 26 -2- LSB 5205XS (5) 83 ec/nh 2/ 2