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:
    TLSB 6033HV (2) 86
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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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       ec/nh