This bill amends Section 423.2 of the Iowa Code to modify the sales tax imposed on amusement devices. Specifically, it introduces a six percent tax on the sales price derived from the operation of all forms of amusement devices, games of skill, games of chance, raffles, and bingo games, while allowing for a deduction of the prizes actually paid out. The tax will be collected from the operator in a manner similar to the collection of taxes on ticket sales or admissions. The bill clarifies that it does not legalize any currently prohibited games of skill or chance.

Additionally, the bill revises the language regarding the scope of the tax, specifying that it applies to the total amount from various amusement activities, including card game tournaments and other amusement sources operated for profit. However, it maintains that no tax will be imposed on activities exempt from sales tax under a specific section of the law. Overall, the bill aims to provide a clearer framework for the taxation of amusement devices while ensuring that the portion of sales price representing prizes is exempt from taxation.

Statutes affected:
Introduced: 423.2