Bill Text: IA HF2445 | 2015-2016 | 86th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: A bill for an act excluding certain promotional play receipts from the definition of adjusted gross receipts for purposes of the wagering tax on gambling games and relating to other matters involving gambling games regulation. Effective 7-1-16.

Spectrum: Committee Bill

Status: (Passed) 2016-04-21 - Signed by Governor. H.J. 722. [HF2445 Detail]

Download: Iowa-2015-HF2445-Introduced.html

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House File 2445 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON WAYS AND
                                     MEANS

                                 (SUCCESSOR TO HSB 641)

                                      A BILL FOR

  1 An Act excluding certain promotional play receipts from the
  2    definition of adjusted gross receipts for purposes of the
  3    wagering tax on gambling games and relating to other matters
  4    involving gambling games regulation.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 99F.1, subsection 1, Code 2016, is
  1  2 amended to read as follows:
  1  3    1.  "Adjusted gross receipts" means the gross receipts less
  1  4 winnings paid to wagerers.  However, "adjusted gross receipts"
  1  5  does not include promotional play receipts received after the
  1  6 date in any fiscal year that the commission determines that
  1  7 the wagering tax imposed pursuant to section 99F.11 on all
  1  8 licensees in that fiscal year on promotional play receipts
  1  9 exceeds twenty=five million eight hundred twenty thousand
  1 10 dollars.
  1 11    Sec. 2.  Section 99F.1, Code 2016, is amended by adding the
  1 12 following new subsection:
  1 13    NEW SUBSECTION.  19A.  "Promotional play receipts" means
  1 14 the total sums wagered on gambling games with tokens, chips,
  1 15 electronic credits, or other forms of cashless wagering
  1 16 provided by the licensee without an exchange of money as
  1 17 described in section 99F.9, subsection 3.
  1 18                           EXPLANATION
  1 19 The inclusion of this explanation does not constitute agreement with
  1 20 the explanation's substance by the members of the general assembly.
  1 21    This bill concerns the definition of adjusted gross receipts
  1 22 for purposes of Code chapter 99F governing gambling games.
  1 23    The bill amends the definition of adjusted gross receipts
  1 24 to provide that adjusted gross receipts does not include
  1 25 promotional play receipts received after the date in any
  1 26 fiscal year that the wagering tax on the portion of adjusted
  1 27 gross receipts representing promotional play receipts exceeds
  1 28 $25,820,000.  The bill defines promotional play receipts as
  1 29 the total sums wagered on gambling games with tokens, chips,
  1 30 electronic credits, or other forms of cashless wagering
  1 31 provided by a licensee without an exchange of money.
  1 32    The definition of adjusted gross receipts is used, in part,
  1 33 to calculate required charitable contributions pursuant to
  1 34 Code sections 99F.5 and 99F.6, net receipts for purposes of
  1 35 determining annual purses for horse racing at the racetrack in
  2  1 Polk county pursuant to Code section 99F.6, and the wagering
  2  2 tax pursuant to Code section 99F.11.
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