H.F. _____ Section 1. Section 422.16, subsection 2, paragraph d, Code 1 2026, is amended to read as follows: 2 d. For the purposes of this subsection , state income 3 tax shall be withheld on winnings in excess of six hundred 4 dollars derived from gambling activities authorized under 5 chapter 99B or 99G . State income tax shall be withheld on 6 winnings in excess of one thousand dollars from gambling 7 activities authorized under chapter 99D . State income tax 8 shall be withheld on winnings in excess of one thousand two 9 hundred dollars derived from slot machines authorized under 10 chapter 99F if the winnings are required to be reported on an 11 information return for federal purposes . State income tax 12 shall be withheld on winnings from sports wagering authorized 13 under chapter 99F whenever federal income tax is required to be 14 withheld from the same winnings in accordance with the Internal 15 Revenue Code. 16 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 17 importance, takes effect upon enactment. 18 EXPLANATION 19 The inclusion of this explanation does not constitute agreement with 20 the explanation’s substance by the members of the general assembly. 21 This bill modifies state income tax withholdings for 22 winnings derived from slot machines. 23 Currently, state income tax is required to be withheld from 24 winnings derived from a slot machine in excess of $1,200. The 25 bill strikes the $1,200 threshold requirement, and requires 26 state income tax withholdings only if the slot machine winnings 27 are required to be reported on an information return for 28 federal purposes. An information return is generally a return 29 that sends information to the federal Internal Revenue Service 30 that reports specific transactions but does not calculate the 31 amount of tax owed. 32 The bill takes effect upon enactment. 33 -1- LSB 6169YC (2) 91 jm/jh 1/ 1