HF 2625 (LSB 1042HZ (2) 90)

HOUSE FILE 2625

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 276)
(SUCCESSOR TO HSB 60)

A BILL FOR

An Act relating to the sales tax imposed on amusement devices.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 423.2, subsection 4, Code 2024, is amended to read as follows:
   4.  a.  A tax of six percent is imposed upon the sales price, less prizes actually paid, derived from the operation of all forms of amusement devices and upon the sales price derived from the operation of all games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, and card game tournaments conducted under section 99B.27, that are operated or conducted within the state, the tax to be collected from the operator in the same manner as for the collection of taxes upon the sales price of tickets or admission as provided in this section. Nothing in this subsection shall legalize any games of skill or chance or slot-operated devices which are now prohibited by law.
   b.  The Except as provided in paragraph “a”, the tax imposed under this subsection covers the total amount from the operation of games of skill, games of chance, raffles, and bingo games as defined in chapter 99B, card game tournaments conducted under section 99B.27, and musical devices, weighing machines, shooting galleries, billiard and pool tables, bowling alleys, pinball machines, slot-operated devices selling merchandise not subject to the general sales taxes and on the total amount from devices or systems where prizes are in any manner awarded to patrons and upon the receipts from fees charged for participation in any game or other form of amusement, and generally upon the sales price from any source of amusement operated for profit, not specified in this section, and upon the sales price from which tax is not collected for tickets or admission, but tax shall not be imposed upon any activity exempt from sales tax under section 423.3, subsection 78. Every person receiving any sales price from the sources described in this section is subject to all provisions of this subchapter relating to retail sales tax and other provisions of this chapter as applicable.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill provides a sales tax exemption on the sales price from the operation of amusement devices, to the extent the amount of the sales price represents amounts that will be awarded as prizes during the operation of such devices.