Bill Summary – FastDemocracy

House Study Bill 719 - Introduced
                                  HOUSE FILE _____
                                  BY (PROPOSED COMMITTEE ON
                                      WAYS AND MEANS BILL BY
                                      CHAIRPERSON KAUFMANN)
                            A BILL FOR
An Act relating to tax rates on receipts from gambling games.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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    Section 1. Section 99F.11, subsection 2, Code 2024, is
 amended to read as follows:
    2. The tax rate imposed each fiscal year on any amount of
 adjusted gross receipts over three million dollars shall be as
 follows:
    a. If the licensee is an excursion gambling boat or gambling
 structure,:
    (1) For fiscal years beginning prior to July 1, 2024,
 twenty-two percent.
    (2) For the fiscal year beginning July 1, 2024, and ending
 June 30, 2025, twenty-one percent.
    (3) For the fiscal year beginning July 1, 2025, and ending
 June 30, 2026, twenty percent.
    (4) For the fiscal year beginning July 1, 2026, and ending
 June 30, 2027, and for each fiscal year thereafter, nineteen
 percent.
    b. If the licensee is a racetrack enclosure conducting
 gambling games and another licensee that is an excursion
 gambling boat or gambling structure is located in the same
 county, then one of the following rate rates, as applicable:
    (1) If the licensee of the racetrack enclosure has not been
 issued a table games license during the fiscal year or if the
 adjusted gross receipts from gambling games of the licensee
 in the prior fiscal year were less than one hundred million
 dollars,:
    (a) For fiscal years beginning prior to July 1, 2024,
 twenty-two percent.
    (b) For the fiscal year beginning July 1, 2024, and ending
 June 30, 2025, twenty-one percent.
    (c) For the fiscal year beginning July 1, 2025, and ending
 June 30, 2026, twenty percent.
    (d) For the fiscal year beginning July 1, 2026, and ending
 June 30, 2027, and for each fiscal year thereafter, nineteen
 percent.
    (2) If the licensee of the racetrack enclosure has been
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                                           H.F. _____
 issued a table games license during the fiscal year or prior
 fiscal year and the adjusted gross receipts from gambling games
 of the licensee in the prior fiscal year were one hundred
 million dollars or more,:
    (a) For fiscal years beginning prior to July 1, 2024,
 twenty-two percent on adjusted gross receipts received prior
 to the operational date and twenty-four percent on adjusted
 gross receipts received on or after the operational date.
 For purposes of this subparagraph division, the operational
 date is the date the commission determines table games became
 operational at the racetrack enclosure.
    (b) For the fiscal year beginning July 1, 2024, and ending
 June 30, 2025, twenty-three percent.
    (c) For the fiscal year beginning July 1, 2025, and ending
 June 30, 2026, twenty-two percent.
    (d) For the fiscal year beginning July 1, 2026, and ending
 June 30, 2027, and for each fiscal year thereafter, twenty-one
 percent.
    c. If the licensee is a racetrack enclosure conducting
 gambling games and no licensee that is an excursion gambling
 boat or gambling structure is located in the same county,:
    (1) For fiscal years beginning prior to July 1, 2024,
 twenty-four percent.
    (2) For the fiscal year beginning July 1, 2024, and ending
 June 30, 2025, twenty-three percent.
    (3) For the fiscal year beginning July 1, 2025, and ending
 June 30, 2026, twenty-two percent.
    (4) For the fiscal year beginning July 1, 2026, and ending
 June 30, 2027, and for each fiscal year thereafter, twenty-one
 percent.
                           EXPLANATION
         The inclusion of this explanation does not constitute agreement with
          the explanation’s substance by the members of the general assembly.
  This bill relates to tax rates on receipts from gambling
games.
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                                  H.F. _____
    Under current law, if a person licensed under Code chapter
 99F (licensee) is an excursion gambling boat or gambling
 structure, the tax rate imposed each fiscal year on any amount
 of adjusted gross receipts over $3 million is 22 percent.
 Under the bill, the tax rate is decreased to 21 percent for FY
 2024-2025, 20 percent for FY 2025-2026, and 19 percent for FY
 2026-2027 and thereafter.
    Under current law, if the licensee is a racetrack enclosure
 conducting gambling games and another licensee that is an
 excursion gambling boat or gambling structure is located in the
 same county and the licensee of the racetrack enclosure has
 not been issued a table games license during the fiscal year
 or if the adjusted gross receipts from gambling games of the
 licensee in the prior fiscal year were less than $100 million,
 the tax rate imposed each fiscal year on any amount of adjusted
 gross receipts over $3 million is 22 percent. Under the bill,
 the tax rate is decreased to 21 percent for FY 2024-2025, 20
 percent for FY 2025-2026, and 19 percent for FY 2026-2027 and
 thereafter.
    Under current law, if the licensee is a racetrack enclosure
 conducting gambling games and another licensee that is an
 excursion gambling boat or gambling structure is located in the
 same county and the licensee of the racetrack enclosure has
 been issued a table games license during the fiscal year or
 prior fiscal year and the adjusted gross receipts from gambling
 games of the licensee in the prior fiscal year were $100
 million or more, the tax rate imposed each fiscal year on any
 amount of adjusted gross receipts over $3 million is 22 percent
 on adjusted gross receipts received prior to the operational
 date and 24 percent on adjusted gross receipts received on
 or after the operational date. Under the bill, the tax rate
 is altered to 23 percent for FY 2024-2025, 22 percent for FY
 2025-2026, and 21 percent for FY 2026-2027 and thereafter,
 regardless of operational date.
    Under current law, if the licensee is a racetrack enclosure
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                                  H.F. _____
 conducting gambling games and no licensee that is an excursion
 gambling boat or gambling structure is located in the same
 county, the tax rate imposed each fiscal year on any amount
 of adjusted gross receipts over $3 million is 24 percent.
 Under the bill, the tax rate is decreased to 23 percent for FY
 2024-2025, 22 percent for FY 2025-2026, and 21 percent for FY
 2026-2027 and thereafter.
    Taxes collected under Code section 99F.11 on the adjusted
 gross receipts from gambling games are used to support a
 variety of programs and funds including the county endowment
 fund; operational support grants, community cultural grants,
 and regional tourism marketing of the economic development
 authority; the rebuild Iowa infrastructure fund; the revenue
 bonds debt service fund and revenue bonds federal subsidy
 holdback fund; the water quality infrastructure fund; the Iowa
 skilled worker and job creation fund; and the levee improvement
 fund.
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Statutes affected: 
Introduced: 99F.11