House Study Bill 122 - Introduced
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BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON KAUFMANN)
A BILL FOR
1 An Act relating to certain tax receipts on internet fantasy
2 sports contests and sports wagering, providing for tax
3 credits, making appropriations, and including applicability
4 and effective date provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 SPORTS WAGERING RECEIPTS
3 Section 1. Section 8.57, subsection 6, Code 2023, is amended
4 by adding the following new paragraphs:
5 NEW PARAGRAPH. f. For the fiscal year beginning July 1,
6 2023, any unobligated and unencumbered moneys in the sports
7 wagering receipts fund from the previous fiscal year are
8 appropriated to the county endowment fund created in section
9 15E.311.
10 NEW PARAGRAPH. g. This subsection is repealed June 30,
11 2024.
12 Sec. 2. Section 15E.311, subsection 3, paragraph a, Code
13 2023, is amended to read as follows:
14 a. At the end of each fiscal year, moneys in the fund
15 shall be transferred into separate accounts within the fund
16 and designated for use by each county in which no licensee
17 authorized to conduct gambling games under chapter 99F was
18 located during that fiscal year. Moneys transferred to
19 county accounts shall be divided equally among the counties.
20 Moneys transferred into an account for a county shall be
21 transferred by the department to an eligible county recipient
22 for that county. Of the moneys transferred, an eligible county
23 recipient shall distribute seventy-five percent of the moneys
24 as grants to charitable organizations for charitable purposes
25 in that county and shall retain twenty-five percent of the
26 moneys for use in establishing a permanent endowment fund
27 for the benefit of charitable organizations for charitable
28 purposes. In addition, of the moneys transferred from moneys
29 appropriated to the fund from the sports wagering receipts
30 fund created in section 8.57, subsection 6, and distributed,
31 eligible county recipients shall give consideration for grants,
32 upon application, to a charitable organization that operates
33 a racetrack facility that conducts automobile races in that
34 county. Of the amounts distributed, eligible county recipients
35 shall give special consideration to grants for projects that
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1 include significant vertical infrastructure components designed
2 to enhance quality of life aspects within local communities.
3 In addition, as a condition of receiving a grant, the governing
4 body of a charitable organization receiving a grant shall
5 approve all expenditures of grant moneys and shall allow a
6 state audit of expenditures of all grant moneys.
7 Sec. 3. Section 99E.6, subsection 2, Code 2023, is amended
8 to read as follows:
9 2. The taxes imposed by this section for internet fantasy
10 sports contests authorized under this chapter shall be paid by
11 the internet fantasy sports contest service provider to the
12 treasurer of state as determined by the commission and shall be
13 credited as provided in section 8.57, subsection 6 deposited in
14 the county endowment fund created in section 15E.311.
15 Sec. 4. Section 99F.11, subsection 5, paragraph b, Code
16 2023, is amended to read as follows:
17 b. The taxes imposed by this subsection for sports wagering
18 authorized under this chapter shall be paid by the licensed
19 operator to the treasurer of state as determined by the
20 commission and shall be credited as provided in section 8.57,
21 subsection 6 distributed as follows:
22 (1) One million seven hundred fifty thousand dollars of
23 taxes paid is appropriated each fiscal year to the department
24 of health and human services for purposes of the gambling
25 treatment program established in section 135.150.
26 (2) One million dollars shall be deposited in the general
27 fund of the state for purposes of section 15E.305.
28 (3) Eighty-five percent of the remaining amount of taxes
29 paid after the distributions made in subparagraphs (1) and (2)
30 shall be deposited in the county endowment fund created in
31 section 15E.311.
32 (4) The remaining amount of taxes paid after the
33 distributions made in this paragraph shall be appropriated to
34 the economic development authority for distribution to each
35 qualified sponsoring organization licensed to operate gambling
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1 games under this chapter on an equal basis.
2 DIVISION II
3 SPORTS WAGERING RECEIPTS FUND APPROPRIATION
4 Sec. 5. SPORTS WAGERING RECEIPTS FUND. There is
5 appropriated from the sports wagering receipts fund created in
6 section 8.57, subsection 6, to the general fund of the state
7 for the fiscal year beginning July 1, 2022, and ending June 30,
8 2023, the following amount to be used for purposes of section
9 15E.305:
10 .................................................. $ 7,000,000
11 Sec. 6. EFFECTIVE DATE. This division of this Act, being
12 deemed of immediate importance, takes effect upon enactment.
13 DIVISION III
14 ENDOW IOWA TAX CREDIT —— TAX YEAR 2023
15 Sec. 7. ENDOW IOWA TAX CREDIT —— TAX YEAR 2023.
16 Notwithstanding any provision of section 15E.305 to the
17 contrary, the aggregate amount of tax credits authorized
18 pursuant to section 15E.305 shall not exceed a total of
19 thirteen million dollars for the tax year beginning on or after
20 January 1, 2023, but before January 1, 2024.
21 Sec. 8. EFFECTIVE DATE. This division of this Act, being
22 deemed of immediate importance, takes effect upon enactment.
23 Sec. 9. RETROACTIVE APPLICABILITY. This division of this
24 Act applies retroactively to January 1, 2023, and applies to
25 the tax year beginning on or after January 1, 2023, but before
26 January 1, 2024.
27 DIVISION IV
28 ENDOW IOWA TAX CREDIT —— TAX YEARS BEGINNING ON OR AFTER TAX
29 YEAR 2024
30 Sec. 10. Section 15E.305, subsection 2, unnumbered
31 paragraph 1, Code 2023, is amended to read as follows:
32 The aggregate amount of tax credits authorized pursuant to
33 this section shall not exceed a total of six seven million
34 dollars annually.
35 Sec. 11. APPLICABILITY. This division of this Act applies
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1 to tax years beginning on or after January 1, 2024.
2 EXPLANATION
3 The inclusion of this explanation does not constitute agreement with
4 the explanation’s substance by the members of the general assembly.
5 This bill concerns the distribution of tax receipts from
6 internet fantasy sports contests and sports wagering. The bill
7 is organized by divisions.
8 Division I of the bill provides that taxes imposed and
9 collected for internet fantasy sports contests shall be
10 deposited in the county endowment fund created in Code section
11 15E.311 and not the sports wagering receipts fund. The bill
12 also provides that taxes imposed and collected for sports
13 wagering shall not be deposited in the sports wagering receipts
14 fund. Instead, the bill provides that the first $1.75 million
15 of taxes paid on sports wagering shall be appropriated to
16 the department of health and human services for purposes of
17 the gambling treatment program, the next $1 million shall be
18 deposited in the general fund for purposes of the endow Iowa
19 tax credit, 85 percent of the remaining amount of taxes paid
20 shall be deposited in the county endowment fund created in
21 Code section 15E.311, and the remaining amount of taxes paid
22 after all other distributions are made shall be appropriated
23 to the economic development authority for equal distribution
24 to qualified sponsoring organizations licensed to operate
25 gambling games under Code chapter 99F. The bill provides that
26 for the fiscal year beginning July 1, 2023, any unobligated and
27 unencumbered moneys in the sports wagering receipts fund from
28 the previous fiscal year shall be appropriated to the county
29 endowment fund. The bill strikes a reference to the sports
30 wagering receipts fund in Code section 15E.311 and provides
31 that the sports wagering receipts fund is repealed June 30,
32 2024.
33 Division II of the bill appropriates $7 million from the
34 sports wagering receipts fund to the general fund for the
35 fiscal year beginning July 1, 2022, for purposes of the endow
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1 Iowa tax credit. The division takes effect upon enactment.
2 Division III of the bill relates to the maximum amount of
3 tax credits authorized for the endow Iowa tax credit for the
4 tax year beginning on or after January 1, 2023, but before
5 January 1, 2024. The bill increases the maximum amount of tax
6 credits authorized for tax year 2023 from $6 million to $13
7 million. The division takes effect upon enactment and applies
8 retroactively to the tax year beginning on or after January 1,
9 2023, but before January 1, 2024.
10 Division IV of the bill relates to the maximum amount of tax
11 credits authorized for the endow Iowa tax credit for tax years
12 beginning on or after January 1, 2024. The bill increases
13 the maximum amount of tax credits authorized for tax years
14 beginning on or after January 1, 2024, to $7 million. The
15 division applies to tax years beginning on or after January 1,
16 2024.
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Statutes affected: Introduced: 8.57, 15E.311