SSB 3140 (LSB 5205XC (2) 83)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM)

A BILL FOR

An Act relating to the wagering tax rate on gambling games.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99F.11, subsection 2, Code Supplement 2009, is amended to read as follows:
   2.  a.  On and after July 1, 2012, the tax rate imposed each fiscal year on any amount of adjusted gross receipts over three million dollars shall be twenty-five percent.
   b.  The Prior to July 1, 2012, the tax rate imposed each fiscal year on any amount of adjusted gross receipts over three million dollars shall be as follows:
   a.(1)  If the licensee is an excursion gambling boat or gambling structure, twenty-two percent. the tax rate shall be as follows:
   (a)  For the fiscal year beginning July 1, 2010, twenty-three percent. 
   (b)  For the fiscal year beginning July 1, 2011, twenty-four percent.
   b.(2)  If the licensee is a racetrack enclosure conducting gambling games and another licensee that is an excursion gambling boat or gambling structure is located in the same county, then the following rate, as applicable:
   (1)  (a)  If the licensee of the racetrack enclosure has not been issued a table games license during the fiscal year or if the adjusted gross receipts from gambling games of the licensee in the prior fiscal year were less than one hundred million dollars, twenty-two percent. the tax rate shall be as follows:
   (i)  For the fiscal year beginning July 1, 2010, twenty-three percent. 
   (ii)  For the fiscal year beginning July 1, 2011, twenty-four percent.
   (2)  (b)  If the licensee of the racetrack enclosure has been issued a table games license during the fiscal year or prior fiscal year and the adjusted gross receipts from gambling games of the licensee in the prior fiscal year were one hundred million dollars or more, twenty-two percent on adjusted gross receipts received prior to the operational date and twenty-four percent on adjusted gross receipts received on or after the operational date twenty-five percent. For purposes of this subparagraph, the operational date is the date the commission determines table games became operational at the racetrack enclosure.
   c.(3)  If the licensee is a racetrack enclosure conducting gambling games and no licensee that is an excursion gambling boat or gambling structure is located in the same county, twenty-four twenty-five percent.
   (4)  This paragraph “b” is repealed July 1, 2012.
EXPLANATION
   This bill increases the wagering tax on adjusted gross receipts from gambling games over $3 million until reaching 25 percent on all facilities licensed under Code chapter 99F by the fiscal year beginning July 1, 2012.
   For excursion gambling boats, gambling structures, and racetrack enclosures with gross receipts less than $100 million, current law provides that the wagering tax is 22 percent. The bill increases the tax rate by one percentage point each fiscal year beginning July 1, 2010, until reaching 25 percent for these facilities on July 1, 2012.
   For racetrack enclosures with gross receipts of $100 million or more or racetracks in a county without an excursion gambling boat or gambling structure, current law provides that the wagering tax is 24 percent. The bill increases the wagering tax on these facilities to 25 percent for each fiscal year beginning on and after July 1, 2010.