HSB 665 (LSB 5457YC (3) 85)

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 gross receipts for purposes of the wagering tax on gambling games.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 99F.1, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  22.  “Taxable gross receipts” means the adjusted gross receipts less the total sums wagered with tokens, chips, electronic credits, or other forms of cashless wagering provided by the licensee without an exchange of money as described in section 99F.9, subsection 4.
    Sec. 2.  Section 99F.4A, subsection 6, Code 2014, is amended to read as follows:
   6.  The adjusted taxable gross receipts received from gambling games shall be taxed at the same rates and the proceeds distributed in the same manner as provided in section 99F.11.
    Sec. 3.  Section 99F.11, subsection 1, Code 2014, is amended to read as follows:
   1.  A tax is imposed on the adjusted taxable gross receipts received each fiscal year from gambling games authorized under this chapter at the rate of five percent on the first one million dollars of adjusted taxable gross receipts and at the rate of ten percent on the next two million dollars of adjusted taxable gross receipts.
    Sec. 4.  Section 99F.11, subsection 2, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   The tax rate imposed each fiscal year on any amount of adjusted taxable gross receipts over three million dollars shall be as follows:
    Sec. 5.  Section 99F.11, subsection 2, paragraph b, subparagraph (2), Code 2014, is amended to read as follows:
   (2)  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 taxable gross receipts received prior to the operational date and twenty-four percent on adjusted taxable gross receipts received on or after the operational date. For purposes of this subparagraph, the operational date is the date the commission determines table games became operational at the racetrack enclosure.
    Sec. 6.  Section 99F.11, subsection 3, paragraphs a, b, and c, Code 2014, are amended to read as follows:
   a.  If the gambling excursion originated at a dock located in a city, one-half of one percent of the adjusted taxable gross receipts shall be remitted to the treasurer of the city in which the dock is located and shall be deposited in the general fund of the city. Another one-half of one percent of the adjusted taxable gross receipts shall be remitted to the treasurer of the county in which the dock is located and shall be deposited in the general fund of the county.
   b.  If the gambling excursion originated at a dock located in a part of the county outside a city, one-half of one percent of the adjusted taxable gross receipts shall be remitted to the treasurer of the county in which the dock is located and shall be deposited in the general fund of the county. Another one-half of one percent of the adjusted taxable gross receipts shall be remitted to the treasurer of the Iowa city nearest to where the dock is located and shall be deposited in the general fund of the city.
   c.  Eight-tenths of one percent of the adjusted taxable gross receipts tax shall be deposited in the county endowment fund created in section 15E.311.
    Sec. 7.  Section 99F.11, subsection 3, paragraph d, unnumbered paragraph 1, Code 2014, is amended to read as follows:

   Two-tenths of one percent of the adjusted taxable gross receipts tax shall be allocated each fiscal year as follows:
    Sec. 8.  Section 99F.11, subsection 3, paragraph e, Code 2014, is amended to read as follows:
   e.  The remaining amount of the adjusted taxable gross receipts tax shall be credited as provided in section 8.57, subsection 5.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill excludes from adjusted gross receipts for purposes of calculating the wagering tax on gambling game receipts as provided in Code section 99F.11 the total sums wagered with tokens, chips, electronic credits, or other forms of cashless wagering provided by the licensee without an exchange of money.