Senate File 126 - Introduced SENATE FILE 126 BY JOCHUM A BILL FOR An Act relating to the sales and use tax imposed on the 1 operation of bingo games. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1978XS (1) 85 ec/sc
S.F. 126 Section 1. Section 423.2, subsection 4, paragraph b, Code 1 2013, is amended to read as follows: 2 b. The tax imposed under this subsection covers the total 3 amount from the operation of games of skill, games of chance, 4 and raffles , and bingo games as defined in chapter 99B , card 5 game tournaments conducted under section 99B.7B , and musical 6 devices, weighing machines, shooting galleries, billiard and 7 pool tables, bowling alleys, pinball machines, slot-operated 8 devices selling merchandise not subject to the general sales 9 taxes , the total amount less amounts awarded as prizes from 10 the operation of bingo games as defined in chapter 99B, and 11 on the total amount from devices or systems where prizes 12 are in any manner awarded to patrons and upon the receipts 13 from fees charged for participation in any game or other 14 form of amusement, and generally upon the sales price from 15 any source of amusement operated for profit, not specified 16 in this section , and upon the sales price from which tax is 17 not collected for tickets or admission, but tax shall not be 18 imposed upon any activity exempt from sales tax under section 19 423.3, subsection 78 . Every person receiving any sales price 20 from the sources described in this section is subject to all 21 provisions of this subchapter relating to retail sales tax and 22 other provisions of this chapter as applicable. 23 EXPLANATION 24 This bill provides that the sales and use tax imposed on the 25 operation of bingo games shall be on the gross amount less the 26 amounts awarded as prizes. Current law imposes the tax on the 27 gross amount derived from the bingo games. 28 -1- LSB 1978XS (1) 85 ec/sc 1/ 1