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House File 710 - IntroducedA Bill ForAn Act 1relating to certain tax receipts on internet fantasy
2sports contests and sports wagering, providing for tax
3credits, making appropriations, and including applicability,
4retroactive applicability, and effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SPORTS WAGERING RECEIPTS
3 Section 1. Section 8.57, subsection 6, Code 2023, is amended
4by adding the following new paragraphs:
5 NEW PARAGRAPH. f. For the fiscal year beginning July 1,
62023, any unobligated and unencumbered moneys in the sports
7wagering receipts fund from the previous fiscal year are
8appropriated to the county endowment fund created in section
915E.311.
10 NEW PARAGRAPH. g. This subsection is repealed June 30,
112024.
12 Sec. 2. Section 15E.311, subsection 3, paragraph a, Code
132023, is amended to read as follows:
14a. At the end of each fiscal year, moneys in the fund
15shall be transferred into separate accounts within the fund
16and designated for use by each county in which no licensee
17authorized to conduct gambling games under chapter 99F was
18located during that fiscal year. Moneys transferred to
19county accounts shall be divided equally among the counties.
20Moneys transferred into an account for a county shall be
21transferred by the department to an eligible county recipient
22for that county. Of the moneys transferred, an eligible county
23recipient shall distribute seventy-five percent of the moneys
24as grants to charitable organizations for charitable purposes
25in that county and shall retain twenty-five percent of the
26moneys for use in establishing a permanent endowment fund
27for the benefit of charitable organizations for charitable
28purposes. In addition, of the moneys transferred from moneys
29appropriated to the fund from the sports wagering receipts
30fund created in section 8.57, subsection 6, and distributed,
31eligible county recipients shall give consideration for grants,
32upon application, to a charitable organization that operates
33a racetrack facility that conducts automobile races in that
34county. Of the amounts distributed, eligible county recipients
35shall give special consideration to grants for projects that
-1-1include significant vertical infrastructure components designed
2to enhance quality of life aspects within local communities.
3In addition, as a condition of receiving a grant, the governing
4body of a charitable organization receiving a grant shall
5approve all expenditures of grant moneys and shall allow a
6state audit of expenditures of all grant moneys.
7 Sec. 3. Section 99E.6, subsection 2, Code 2023, is amended
8to read as follows:
92. The taxes imposed by this section for internet fantasy
10sports contests authorized under this chapter shall be paid by
11the internet fantasy sports contest service provider to the
12treasurer of state as determined by the commission and shall be
13credited as provided in section 8.57, subsection 6 deposited in
14the county endowment fund created in section 15E.311.
15 Sec. 4. Section 99F.11, subsection 5, paragraph b, Code
162023, is amended to read as follows:
17b. The taxes imposed by this subsection for sports wagering
18authorized under this chapter shall be paid by the licensed
19operator to the treasurer of state as determined by the
20commission and shall be credited as provided in section 8.57,
21subsection 6 distributed as follows:
22(1) One million seven hundred fifty thousand dollars of
23taxes paid is appropriated each fiscal year to the department
24of health and human services for purposes of the gambling
25treatment program established in section 135.150.
26(2) One million dollars shall be deposited in the general
27fund of the state for purposes of section 15E.305.
28(3) Eighty-five percent of the remaining amount of taxes
29paid after the distributions made in subparagraphs (1) and (2)
30shall be deposited in the county endowment fund created in
31section 15E.311.
32(4) The remaining amount of taxes paid after the
33distributions made in this paragraph shall be appropriated to
34the economic development authority for distribution to each
35qualified sponsoring organization licensed to operate gambling
-2-1games under this chapter on an equal basis.
2DIVISION II
3Sports wagering receipts fund appropriation
4 Sec. 5. SPORTS WAGERING RECEIPTS FUND. There is
5appropriated from the sports wagering receipts fund created in
6section 8.57, subsection 6, to the general fund of the state
7for the fiscal year beginning July 1, 2022, and ending June 30,
82023, the following amount to be used for purposes of section
915E.305:
.................................................. $107,000,000
11 Sec. 6. EFFECTIVE DATE. This division of this Act, being
12deemed of immediate importance, takes effect upon enactment.
13DIVISION III
14Endow Iowa tax Credit — Tax year 2023
15 Sec. 7. ENDOW IOWA TAX CREDIT — TAX YEAR 2023.
16Notwithstanding any provision of section 15E.305 to the
17contrary, the aggregate amount of tax credits authorized
18pursuant to section 15E.305 shall not exceed a total of
19thirteen million dollars for the tax year beginning on or after
20January 1, 2023, but before January 1, 2024.
21 Sec. 8. EFFECTIVE DATE. This division of this Act, being
22deemed of immediate importance, takes effect upon enactment.
23 Sec. 9. RETROACTIVE APPLICABILITY. This division of this
24Act applies retroactively to January 1, 2023, and applies to
25the tax year beginning on or after January 1, 2023, but before
26January 1, 2024.
27DIVISION IV
28Endow Iowa tax credit — Tax years beginning on or after tax
29year 2024
30 Sec. 10. Section 15E.305, subsection 2, unnumbered
31paragraph 1, Code 2023, is amended to read as follows:
32The aggregate amount of tax credits authorized pursuant to
33this section shall not exceed a total of six seven million
34dollars annually.
35 Sec. 11. APPLICABILITY. This division of this Act applies
-3-1to tax years beginning on or after January 1, 2024.
2DIVISION V
3ENDOW IOWA TAX CREDIT — GIFTS MADE PRIOR TO 2023
4 Sec. 12. 2022 Iowa Acts, chapter 1002, is amended by adding
5the following new section:
6 NEW SECTION. SEC. 54A. APPLICABILITY. The following
7applies to endowment gifts made to an endow Iowa qualified
8community foundation on or after January 1, 2023:
9The section of this division of this Act amending section
1015E.305, subsection 2, paragraph “a”.
11 Sec. 13. 2022 Iowa Acts, chapter 1002, section 55, is
12amended to read as follows:
13SEC. 55. APPLICABILITY. This Except as otherwise provided
14by this division of this Act, this division of this Act applies
15to tax years beginning on or after January 1, 2023.
16 Sec. 14. EFFECTIVE DATE. This division of this Act, being
17deemed of immediate importance, takes effect upon enactment.
18 Sec. 15. RETROACTIVE APPLICABILITY. This division of this
19Act applies retroactively to January 1, 2023.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill concerns the distribution of tax receipts from
24internet fantasy sports contests and sports wagering. The bill
25is organized by divisions.
26Division I of the bill provides that taxes imposed and
27collected for internet fantasy sports contests shall be
28deposited in the county endowment fund created in Code section
2915E.311 and not the sports wagering receipts fund. The bill
30also provides that taxes imposed and collected for sports
31wagering shall not be deposited in the sports wagering receipts
32fund. Instead, the bill provides that the first $1.75 million
33of taxes paid on sports wagering shall be appropriated to
34the department of health and human services for purposes of
35the gambling treatment program, the next $1 million shall be
-4-1deposited in the general fund for purposes of the endow Iowa
2tax credit, 85 percent of the remaining amount of taxes paid
3shall be deposited in the county endowment fund created in
4Code section 15E.311, and the remaining amount of taxes paid
5after all other distributions are made shall be appropriated
6to the economic development authority for equal distribution
7to qualified sponsoring organizations licensed to operate
8gambling games under Code chapter 99F. The bill provides that
9for the fiscal year beginning July 1, 2023, any unobligated and
10unencumbered moneys in the sports wagering receipts fund from
11the previous fiscal year shall be appropriated to the county
12endowment fund. The bill strikes a reference to the sports
13wagering receipts fund in Code section 15E.311 and provides
14that the sports wagering receipts fund is repealed June 30,
152024.
16Division II of the bill appropriates $7 million from the
17sports wagering receipts fund to the general fund for the
18fiscal year beginning July 1, 2022, for purposes of the endow
19Iowa tax credit. The division takes effect upon enactment.
20Division III of the bill relates to the maximum amount of
21tax credits authorized for the endow Iowa tax credit for the
22tax year beginning on or after January 1, 2023, but before
23January 1, 2024. The bill increases the maximum amount of tax
24credits authorized for tax year 2023 from $6 million to $13
25million. The division takes effect upon enactment and applies
26retroactively to the tax year beginning on or after January 1,
272023, but before January 1, 2024.
28Division IV of the bill relates to the maximum amount of tax
29credits authorized for the endow Iowa tax credit for tax years
30beginning on or after January 1, 2024. The bill increases
31the maximum amount of tax credits authorized for tax years
32beginning on or after January 1, 2024, to $7 million. The
33division applies to tax years beginning on or after January 1,
342024.
35Division V of the bill provides that the changes made in
-5-12022 Iowa Acts, chapter 1002, to the maximum amount of tax
2credits authorized for the endow Iowa tax credit do not apply
3to endowment gifts made to an endow Iowa qualified foundation
4prior to January 1, 2023. The division takes effect upon
5enactment and applies retroactively to January 1, 2023.
-6-ec/rn
2sports contests and sports wagering, providing for tax
3credits, making appropriations, and including applicability,
4retroactive applicability, and effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2SPORTS WAGERING RECEIPTS
3 Section 1. Section 8.57, subsection 6, Code 2023, is amended
4by adding the following new paragraphs:
5 NEW PARAGRAPH. f. For the fiscal year beginning July 1,
62023, any unobligated and unencumbered moneys in the sports
7wagering receipts fund from the previous fiscal year are
8appropriated to the county endowment fund created in section
915E.311.
10 NEW PARAGRAPH. g. This subsection is repealed June 30,
112024.
12 Sec. 2. Section 15E.311, subsection 3, paragraph a, Code
132023, is amended to read as follows:
14a. At the end of each fiscal year, moneys in the fund
15shall be transferred into separate accounts within the fund
16and designated for use by each county in which no licensee
17authorized to conduct gambling games under chapter 99F was
18located during that fiscal year. Moneys transferred to
19county accounts shall be divided equally among the counties.
20Moneys transferred into an account for a county shall be
21transferred by the department to an eligible county recipient
22for that county. Of the moneys transferred, an eligible county
23recipient shall distribute seventy-five percent of the moneys
24as grants to charitable organizations for charitable purposes
25in that county and shall retain twenty-five percent of the
26moneys for use in establishing a permanent endowment fund
27for the benefit of charitable organizations for charitable
28purposes. In addition, of the moneys transferred from moneys
29appropriated to the fund from the sports wagering receipts
30fund created in section 8.57, subsection 6, and distributed,
31eligible county recipients shall give consideration for grants,
32upon application, to a charitable organization that operates
33a racetrack facility that conducts automobile races in that
34county. Of the amounts distributed, eligible county recipients
35shall give special consideration to grants for projects that
-1-1include significant vertical infrastructure components designed
2to enhance quality of life aspects within local communities.
3In addition, as a condition of receiving a grant, the governing
4body of a charitable organization receiving a grant shall
5approve all expenditures of grant moneys and shall allow a
6state audit of expenditures of all grant moneys.
7 Sec. 3. Section 99E.6, subsection 2, Code 2023, is amended
8to read as follows:
92. The taxes imposed by this section for internet fantasy
10sports contests authorized under this chapter shall be paid by
11the internet fantasy sports contest service provider to the
12treasurer of state as determined by the commission and shall be
13credited as provided in section 8.57, subsection 6 deposited in
14the county endowment fund created in section 15E.311.
15 Sec. 4. Section 99F.11, subsection 5, paragraph b, Code
162023, is amended to read as follows:
17b. The taxes imposed by this subsection for sports wagering
18authorized under this chapter shall be paid by the licensed
19operator to the treasurer of state as determined by the
20commission and shall be credited as provided in section 8.57,
21subsection 6 distributed as follows:
22(1) One million seven hundred fifty thousand dollars of
23taxes paid is appropriated each fiscal year to the department
24of health and human services for purposes of the gambling
25treatment program established in section 135.150.
26(2) One million dollars shall be deposited in the general
27fund of the state for purposes of section 15E.305.
28(3) Eighty-five percent of the remaining amount of taxes
29paid after the distributions made in subparagraphs (1) and (2)
30shall be deposited in the county endowment fund created in
31section 15E.311.
32(4) The remaining amount of taxes paid after the
33distributions made in this paragraph shall be appropriated to
34the economic development authority for distribution to each
35qualified sponsoring organization licensed to operate gambling
-2-1games under this chapter on an equal basis.
2DIVISION II
3Sports wagering receipts fund appropriation
4 Sec. 5. SPORTS WAGERING RECEIPTS FUND. There is
5appropriated from the sports wagering receipts fund created in
6section 8.57, subsection 6, to the general fund of the state
7for the fiscal year beginning July 1, 2022, and ending June 30,
82023, the following amount to be used for purposes of section
915E.305:
.................................................. $107,000,000
11 Sec. 6. EFFECTIVE DATE. This division of this Act, being
12deemed of immediate importance, takes effect upon enactment.
13DIVISION III
14Endow Iowa tax Credit — Tax year 2023
15 Sec. 7. ENDOW IOWA TAX CREDIT — TAX YEAR 2023.
16Notwithstanding any provision of section 15E.305 to the
17contrary, the aggregate amount of tax credits authorized
18pursuant to section 15E.305 shall not exceed a total of
19thirteen million dollars for the tax year beginning on or after
20January 1, 2023, but before January 1, 2024.
21 Sec. 8. EFFECTIVE DATE. This division of this Act, being
22deemed of immediate importance, takes effect upon enactment.
23 Sec. 9. RETROACTIVE APPLICABILITY. This division of this
24Act applies retroactively to January 1, 2023, and applies to
25the tax year beginning on or after January 1, 2023, but before
26January 1, 2024.
27DIVISION IV
28Endow Iowa tax credit — Tax years beginning on or after tax
29year 2024
30 Sec. 10. Section 15E.305, subsection 2, unnumbered
31paragraph 1, Code 2023, is amended to read as follows:
32The aggregate amount of tax credits authorized pursuant to
33this section shall not exceed a total of six seven million
34dollars annually.
35 Sec. 11. APPLICABILITY. This division of this Act applies
-3-1to tax years beginning on or after January 1, 2024.
2DIVISION V
3ENDOW IOWA TAX CREDIT — GIFTS MADE PRIOR TO 2023
4 Sec. 12. 2022 Iowa Acts, chapter 1002, is amended by adding
5the following new section:
6 NEW SECTION. SEC. 54A. APPLICABILITY. The following
7applies to endowment gifts made to an endow Iowa qualified
8community foundation on or after January 1, 2023:
9The section of this division of this Act amending section
1015E.305, subsection 2, paragraph “a”.
11 Sec. 13. 2022 Iowa Acts, chapter 1002, section 55, is
12amended to read as follows:
13SEC. 55. APPLICABILITY. This Except as otherwise provided
14by this division of this Act, this division of this Act applies
15to tax years beginning on or after January 1, 2023.
16 Sec. 14. EFFECTIVE DATE. This division of this Act, being
17deemed of immediate importance, takes effect upon enactment.
18 Sec. 15. RETROACTIVE APPLICABILITY. This division of this
19Act applies retroactively to January 1, 2023.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill concerns the distribution of tax receipts from
24internet fantasy sports contests and sports wagering. The bill
25is organized by divisions.
26Division I of the bill provides that taxes imposed and
27collected for internet fantasy sports contests shall be
28deposited in the county endowment fund created in Code section
2915E.311 and not the sports wagering receipts fund. The bill
30also provides that taxes imposed and collected for sports
31wagering shall not be deposited in the sports wagering receipts
32fund. Instead, the bill provides that the first $1.75 million
33of taxes paid on sports wagering shall be appropriated to
34the department of health and human services for purposes of
35the gambling treatment program, the next $1 million shall be
-4-1deposited in the general fund for purposes of the endow Iowa
2tax credit, 85 percent of the remaining amount of taxes paid
3shall be deposited in the county endowment fund created in
4Code section 15E.311, and the remaining amount of taxes paid
5after all other distributions are made shall be appropriated
6to the economic development authority for equal distribution
7to qualified sponsoring organizations licensed to operate
8gambling games under Code chapter 99F. The bill provides that
9for the fiscal year beginning July 1, 2023, any unobligated and
10unencumbered moneys in the sports wagering receipts fund from
11the previous fiscal year shall be appropriated to the county
12endowment fund. The bill strikes a reference to the sports
13wagering receipts fund in Code section 15E.311 and provides
14that the sports wagering receipts fund is repealed June 30,
152024.
16Division II of the bill appropriates $7 million from the
17sports wagering receipts fund to the general fund for the
18fiscal year beginning July 1, 2022, for purposes of the endow
19Iowa tax credit. The division takes effect upon enactment.
20Division III of the bill relates to the maximum amount of
21tax credits authorized for the endow Iowa tax credit for the
22tax year beginning on or after January 1, 2023, but before
23January 1, 2024. The bill increases the maximum amount of tax
24credits authorized for tax year 2023 from $6 million to $13
25million. The division takes effect upon enactment and applies
26retroactively to the tax year beginning on or after January 1,
272023, but before January 1, 2024.
28Division IV of the bill relates to the maximum amount of tax
29credits authorized for the endow Iowa tax credit for tax years
30beginning on or after January 1, 2024. The bill increases
31the maximum amount of tax credits authorized for tax years
32beginning on or after January 1, 2024, to $7 million. The
33division applies to tax years beginning on or after January 1,
342024.
35Division V of the bill provides that the changes made in
-5-12022 Iowa Acts, chapter 1002, to the maximum amount of tax
2credits authorized for the endow Iowa tax credit do not apply
3to endowment gifts made to an endow Iowa qualified foundation
4prior to January 1, 2023. The division takes effect upon
5enactment and applies retroactively to January 1, 2023.
-6-ec/rn