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House Study Bill 61 - IntroducedA Bill ForAn Act 1relating to wagering taxes imposed on promotional play
2receipts.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99F.1, subsection 1, Code 2019, is
2amended to read as follows:
31. “Adjusted gross receipts” means the gross receipts
4less winnings paid to wagerers. However, “adjusted gross
5receipts” does not include and less promotional play receipts
6received after the date in any fiscal year that the commission
7determines that the wagering tax imposed pursuant to section
899F.11 on all licensees in that fiscal year on promotional
9play receipts exceeds twenty-five million eight hundred twenty
10thousand dollars.
11 Sec. 2. NEW SECTION. 99F.11A Promotional play receipts
12taxation.
131. Notwithstanding any provision of law to the contrary,
14for the fiscal year beginning July 1, 2019, and for each fiscal
15year thereafter through the fiscal year beginning July 1,
162022, “adjusted gross receipts” for purposes of this chapter
17shall include an amount equal to the applicable percentage of
18promotional play receipts received prior to the date in any
19fiscal year that the racing and gaming commission determines
20that the wagering tax imposed pursuant to section 99F.11 on
21all licensees in that fiscal year on promotional play receipts
22exceeds twenty-five million eight hundred twenty thousand
23dollars.
242. For purposes of this section, “applicable percentage”
25means as follows:
26a. For the fiscal year beginning July 1, 2019, and ending
27June 30, 2020, eighty percent.
28b. For the fiscal year beginning July 1, 2020, and ending
29June 30, 2021, sixty percent.
30c. For the fiscal year beginning July 1, 2021, and ending
31June 30, 2022, forty percent.
32d. For the fiscal year beginning July 1, 2022, and ending
33June 30, 2023, twenty percent.
343. This section is repealed July 1, 2023.
35EXPLANATION
-1-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill concerns the definition of adjusted gross receipts
4for purposes of Code chapter 99F governing gambling games.
5The bill amends the definition of adjusted gross receipts
6to provide that adjusted gross receipts does not include
7promotional play receipts. Currently, adjusted gross receipts
8includes promotional play receipts until the date in any
9fiscal year that the wagering tax on the portion of adjusted
10gross receipts representing promotional play receipts exceeds
11$25,820,000. However, the bill establishes new Code section
1299F.11A which provides, for the fiscal period beginning July 1,
132019, and ending June 30, 2023, that adjusted gross receipts
14does include an amount equal to the applicable percentage of
15promotional play receipts received prior to the date in any
16fiscal year that the racing and gaming commission determines
17that the wagering tax imposed on all licensees in that fiscal
18year on promotional play receipts exceeds $25,820,000. The new
19Code section provides that the applicable percentage for FY
202019-2020 is 80 percent, for FY 2020-2021, 60 percent, for FY
212021-2022, 40 percent, and for FY 2022-2023, 20 percent. This
22new Code section is repealed July 1, 2023. The bill provides,
23then, that beginning July 1, 2023, that adjusted gross receipts
24does not include any promotional play receipts.
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2receipts.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 99F.1, subsection 1, Code 2019, is
2amended to read as follows:
31. “Adjusted gross receipts” means the gross receipts
4less winnings paid to wagerers. However, “adjusted gross
5receipts” does not include and less promotional play receipts
6received after the date in any fiscal year that the commission
7determines that the wagering tax imposed pursuant to section
899F.11 on all licensees in that fiscal year on promotional
9play receipts exceeds twenty-five million eight hundred twenty
10thousand dollars.
11 Sec. 2. NEW SECTION. 99F.11A Promotional play receipts
12taxation.
131. Notwithstanding any provision of law to the contrary,
14for the fiscal year beginning July 1, 2019, and for each fiscal
15year thereafter through the fiscal year beginning July 1,
162022, “adjusted gross receipts” for purposes of this chapter
17shall include an amount equal to the applicable percentage of
18promotional play receipts received prior to the date in any
19fiscal year that the racing and gaming commission determines
20that the wagering tax imposed pursuant to section 99F.11 on
21all licensees in that fiscal year on promotional play receipts
22exceeds twenty-five million eight hundred twenty thousand
23dollars.
242. For purposes of this section, “applicable percentage”
25means as follows:
26a. For the fiscal year beginning July 1, 2019, and ending
27June 30, 2020, eighty percent.
28b. For the fiscal year beginning July 1, 2020, and ending
29June 30, 2021, sixty percent.
30c. For the fiscal year beginning July 1, 2021, and ending
31June 30, 2022, forty percent.
32d. For the fiscal year beginning July 1, 2022, and ending
33June 30, 2023, twenty percent.
343. This section is repealed July 1, 2023.
35EXPLANATION
-1-1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
3This bill concerns the definition of adjusted gross receipts
4for purposes of Code chapter 99F governing gambling games.
5The bill amends the definition of adjusted gross receipts
6to provide that adjusted gross receipts does not include
7promotional play receipts. Currently, adjusted gross receipts
8includes promotional play receipts until the date in any
9fiscal year that the wagering tax on the portion of adjusted
10gross receipts representing promotional play receipts exceeds
11$25,820,000. However, the bill establishes new Code section
1299F.11A which provides, for the fiscal period beginning July 1,
132019, and ending June 30, 2023, that adjusted gross receipts
14does include an amount equal to the applicable percentage of
15promotional play receipts received prior to the date in any
16fiscal year that the racing and gaming commission determines
17that the wagering tax imposed on all licensees in that fiscal
18year on promotional play receipts exceeds $25,820,000. The new
19Code section provides that the applicable percentage for FY
202019-2020 is 80 percent, for FY 2020-2021, 60 percent, for FY
212021-2022, 40 percent, and for FY 2022-2023, 20 percent. This
22new Code section is repealed July 1, 2023. The bill provides,
23then, that beginning July 1, 2023, that adjusted gross receipts
24does not include any promotional play receipts.
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