Senate File 2330 - Reprinted



                                  SENATE FILE       
                                  BY  COMMITTEE ON STATE GOVERNMENT

                                  (SUCCESSOR TO SF 2142)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act prohibiting monitor vending machines and providing an
  2    excise tax and an effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 SF 2330
  5 ec/cc/26

PAG LIN



  1  1    Section 1.  Section 99G.3, subsection 7, Code 2005, is
  1  2 amended to read as follows:
  1  3    7.  "Lottery", "lotteries", "lottery game", "lottery games"
  1  4 or "lottery products" means any game of chance approved by the
  1  5 board and operated pursuant to this chapter and games using
  1  6 mechanical or electronic devices, provided that the authority
  1  7 shall not authorize a monitor vending machine or a player=
  1  8 activated gaming machine that utilizes an internal randomizer
  1  9 to determine winning and nonwinning plays and that upon random
  1 10 internal selection of a winning play dispenses coins,
  1 11 currency, or a ticket, credit, or token to the player that is
  1 12 redeemable for cash or a prize, and excluding gambling or
  1 13 gaming conducted pursuant to chapter 99B, 99D, or 99F.
  1 14    Sec. 2.  Section 99G.3, Code 2005, is amended by adding the
  1 15 following new subsection:
  1 16    NEW SUBSECTION.  8A.  "Monitor vending machine" means a
  1 17 machine or other similar electronic device that includes a
  1 18 video monitor and audio capabilities that dispenses to a
  1 19 purchaser lottery tickets that have been determined to be
  1 20 winning or losing tickets by a predetermined pool drawing
  1 21 machine prior to the dispensing of the tickets.
  1 22    Sec. 3.  NEW SECTION.  99G.30A  MONITOR VENDING MACHINE ==
  1 23 TAX IMPOSED.
  1 24    1.  If revenues are generated from monitor vending machines
  1 25 on or after forty=five days following the effective date of
  1 26 this Act, then there shall be a monitor vending machine excise
  1 27 tax imposed on net monitor vending machine revenue receipts at
  1 28 the rate of sixty=five percent.
  1 29    2.  a.  The director of revenue shall administer the
  1 30 monitor vending machine excise tax as nearly as possible in
  1 31 conjunction with the administration of state sales tax laws.
  1 32 The director shall provide appropriate forms or provide
  1 33 appropriate entries on the regular state tax forms for
  1 34 reporting local sales and services tax liability.
  1 35    b.  All powers and requirements of the director to
  2  1 administer the state sales and use tax law are applicable to
  2  2 the administration of the monitor vending machine excise tax,
  2  3 including but not limited to the provisions of section 422.25,
  2  4 subsection 4, sections 422.30, 422.67, and 422.68, section
  2  5 422.69, subsection 1, sections 422.70 to 422.75, section
  2  6 423.14, subsection 1 and subsection 2, paragraphs "b" through
  2  7 "e", and sections 423.15, 423.23, 423.24, 423.25, 423.31 to
  2  8 423.35, 423.37 to 423.42, 423.46, and 423.47.
  2  9    c.  Frequency of deposits and quarterly reports of the
  2 10 monitor vending machine excise tax with the department of
  2 11 revenue are governed by the tax provisions in section 423.31.
  2 12 Monitor vending machine excise tax collections shall not be
  2 13 included in computation of the total tax to determine
  2 14 frequency of filing under section 423.31.
  2 15    3.  For purposes of this section, "net monitor vending
  2 16 machine revenue receipts" means the gross receipts received
  2 17 from monitor vending machines less prizes awarded.
  2 18    Sec. 4.  TRANSITION PROVISIONS == MONITOR VENDING MACHINES.
  2 19 Notwithstanding any provision of section 99G.3, as amended by
  2 20 this Act, to the contrary, a retailer that has acquired a
  2 21 monitor vending machine prior to the effective date of this
  2 22 Act shall be allowed to offer the machine to the public for
  2 23 only forty=five days following the effective date of this Act.
  2 24 On or after forty=five days following the effective date of
  2 25 this Act, a retailer shall not make a monitor vending machine
  2 26 available to the public.
  2 27    Sec. 5.  EFFECTIVE DATE.  This Act, being deemed of
  2 28 immediate importance, takes effect upon enactment.
  2 29 SF 2330
  2 30 ec/cc/26