House Study Bill 665 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act excluding certain wagers from the definition of adjusted 1 gross receipts for purposes of the wagering tax on gambling 2 games. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5457YC (3) 85 ec/nh

H.F. _____ Section 1. Section 99F.1, Code 2014, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 22. “Taxable gross receipts” means the 3 adjusted gross receipts less the total sums wagered with 4 tokens, chips, electronic credits, or other forms of cashless 5 wagering provided by the licensee without an exchange of money 6 as described in section 99F.9, subsection 4. 7 Sec. 2. Section 99F.4A, subsection 6, Code 2014, is amended 8 to read as follows: 9 6. The adjusted taxable gross receipts received from 10 gambling games shall be taxed at the same rates and the 11 proceeds distributed in the same manner as provided in section 12 99F.11 . 13 Sec. 3. Section 99F.11, subsection 1, Code 2014, is amended 14 to read as follows: 15 1. A tax is imposed on the adjusted taxable gross receipts 16 received each fiscal year from gambling games authorized under 17 this chapter at the rate of five percent on the first one 18 million dollars of adjusted taxable gross receipts and at the 19 rate of ten percent on the next two million dollars of adjusted 20 taxable gross receipts. 21 Sec. 4. Section 99F.11, subsection 2, unnumbered paragraph 22 1, Code 2014, is amended to read as follows: 23 The tax rate imposed each fiscal year on any amount of 24 adjusted taxable gross receipts over three million dollars 25 shall be as follows: 26 Sec. 5. Section 99F.11, subsection 2, paragraph b, 27 subparagraph (2), Code 2014, is amended to read as follows: 28 (2) If the licensee of the racetrack enclosure has been 29 issued a table games license during the fiscal year or prior 30 fiscal year and the adjusted gross receipts from gambling games 31 of the licensee in the prior fiscal year were one hundred 32 million dollars or more, twenty-two percent on adjusted taxable 33 gross receipts received prior to the operational date and 34 twenty-four percent on adjusted taxable gross receipts received 35 -1- LSB 5457YC (3) 85 ec/nh 1/ 3

H.F. _____ on or after the operational date. 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 Sec. 6. Section 99F.11, subsection 3, paragraphs a, b, and 5 c, Code 2014, are amended to read as follows: 6 a. If the gambling excursion originated at a dock located 7 in a city, one-half of one percent of the adjusted taxable 8 gross receipts shall be remitted to the treasurer of the city 9 in which the dock is located and shall be deposited in the 10 general fund of the city. Another one-half of one percent of 11 the adjusted taxable gross receipts shall be remitted to the 12 treasurer of the county in which the dock is located and shall 13 be deposited in the general fund of the county. 14 b. If the gambling excursion originated at a dock located 15 in a part of the county outside a city, one-half of one percent 16 of the adjusted taxable gross receipts shall be remitted to 17 the treasurer of the county in which the dock is located and 18 shall be deposited in the general fund of the county. Another 19 one-half of one percent of the adjusted taxable gross receipts 20 shall be remitted to the treasurer of the Iowa city nearest to 21 where the dock is located and shall be deposited in the general 22 fund of the city. 23 c. Eight-tenths of one percent of the adjusted taxable gross 24 receipts tax shall be deposited in the county endowment fund 25 created in section 15E.311 . 26 Sec. 7. Section 99F.11, subsection 3, paragraph d, 27 unnumbered paragraph 1, Code 2014, is amended to read as 28 follows: 29 Two-tenths of one percent of the adjusted taxable gross 30 receipts tax shall be allocated each fiscal year as follows: 31 Sec. 8. Section 99F.11, subsection 3, paragraph e, Code 32 2014, is amended to read as follows: 33 e. The remaining amount of the adjusted taxable gross 34 receipts tax shall be credited as provided in section 8.57, 35 -2- LSB 5457YC (3) 85 ec/nh 2/ 3

H.F. _____ subsection 5 . 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill excludes from adjusted gross receipts for purposes 5 of calculating the wagering tax on gambling game receipts as 6 provided in Code section 99F.11 the total sums wagered with 7 tokens, chips, electronic credits, or other forms of cashless 8 wagering provided by the licensee without an exchange of money. 9 -3- LSB 5457YC (3) 85 ec/nh 3/ 3