House File 388 - Introduced HOUSE FILE 388 BY MOORE A BILL FOR An Act relating to the sales tax imposed on the operation of 1 bingo games by certain nonprofit entities. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2197HH (1) 86 mm/nh

H.F. 388 Section 1. Section 423.3, Code 2015, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 101. The sales price from the operation 3 of a bingo game, as defined in chapter 99B, operated by a 4 nonprofit entity that is exempt from federal income taxation 5 pursuant to section 501(c)(3) of the Internal Revenue Code, 6 a government entity, or a nonprofit private educational 7 institution, to the extent the amount of the sales price 8 represents amounts that will be awarded as prizes during the 9 operation of the bingo game. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill provides a limited sales tax exemption for 14 the operation of a bingo game by an Internal Revenue Code 15 §501(c)(3) tax-exempt nonprofit entity, government entity, or 16 a nonprofit private educational institution. The exemption 17 applies to the extent the amount of the sales price represents 18 amounts that will be awarded as prizes during the operation of 19 the bingo game. 20 -1- LSB 2197HH (1) 86 mm/nh 1/ 1