Bill Text: IA SF24 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act relating to gambling games licensure and the wagering tax on gambling games.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2015-01-21 - Subcommittee, Horn, Bertrand, and Dearden. S.J. 129. [SF24 Detail]
Download: Iowa-2015-SF24-Introduced.html
Senate File 24 - Introduced SENATE FILE BY HORN and ZUMBACH A BILL FOR 1 An Act relating to gambling games licensure and the wagering 2 tax on gambling games. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1011XS (4) 86 ec/nh PAG LIN 1 1 Section 1. Section 99F.1, Code 2015, is amended by adding 1 2 the following new subsections: 1 3 NEW SUBSECTION. 19A. "Promotional play" means wagers 1 4 conducted with tokens, chips, electronic credits, or other 1 5 forms of cashless wagering provided by the licensee without an 1 6 exchange of money as described in section 99F.9, subsection 3. 1 7 NEW SUBSECTION. 22. "Taxable gross receipts" means the 1 8 adjusted gross receipts less the total sums wagered through 1 9 promotional play. 1 10 Sec. 2. Section 99F.4A, subsection 6, Code 2015, is amended 1 11 to read as follows: 1 12 6. Theadjustedtaxable gross receipts received from 1 13 gambling games shall be taxed at the same rates and the 1 14 proceeds distributed in the same manner as provided in section 1 15 99F.11. 1 16 Sec. 3. NEW SECTION. 99F.4E Moratorium for issuance of 1 17 licenses for gambling games. 1 18 1. For the period beginning January 1, 2016, and ending 1 19 December 31, 2025, the commission shall not issue a license to 1 20 conduct gambling games on an excursion gambling boat or at a 1 21 gambling structure or a pari=mutuel racetrack pursuant to this 1 22 chapter. 1 23 2. This section does not affect the validity of a license 1 24 issued by the commission pursuant to this chapter or this Act 1 25 before January 1, 2016, or the authority of the commission to 1 26 suspend, revoke, transfer, or renew a license issued before 1 27 January 1, 2016, pursuant to chapter 99D or this chapter. 1 28 Sec. 4. NEW SECTION. 99F.5A Supplemental distribution to 1 29 qualified sponsoring organizations. 1 30 For each license year, a qualified sponsoring organization 1 31 licensed to operate gambling games under this chapter shall 1 32 retain, as a supplemental distribution from the adjusted gross 1 33 receipts of the licensee, an amount representing fifty percent 1 34 of the difference between the wagering tax calculated for the 1 35 licensee under section 99F.11 using the definition of adjusted 2 1 gross receipts as provided in section 99F.1 and the wagering 2 2 tax for the licensee calculated on taxable gross receipts as 2 3 provided in section 99F.11 for each license year. 2 4 Sec. 5. Section 99F.11, subsection 1, Code 2015, is amended 2 5 to read as follows: 2 6 1. A tax is imposed on theadjustedtaxable gross receipts 2 7 received each fiscal year from gambling games authorized under 2 8 this chapter at the rate of five percent on the first one 2 9 million dollars ofadjustedtaxable gross receipts and at the 2 10 rate of ten percent on the next two million dollars ofadjusted 2 11taxable gross receipts. 2 12 Sec. 6. Section 99F.11, subsection 2, unnumbered paragraph 2 13 1, Code 2015, is amended to read as follows: 2 14 The tax rate imposed each fiscal year on any amount of 2 15adjustedtaxable gross receipts over three million dollars 2 16 shall be as follows: 2 17 Sec. 7. Section 99F.11, subsection 2, paragraph b, 2 18 subparagraph (2), Code 2015, is amended to read as follows: 2 19 (2) If the licensee of the racetrack enclosure has been 2 20 issued a table games license during the fiscal year or prior 2 21 fiscal year and the adjusted gross receipts from gambling games 2 22 of the licensee in the prior fiscal year were one hundred 2 23 million dollars or more, twenty=two percent onadjustedtaxable 2 24 gross receipts received prior to the operational date and 2 25 twenty=four percent onadjustedtaxable gross receipts received 2 26 on or after the operational date. For purposes of this 2 27 subparagraph, the operational date is the date the commission 2 28 determines table games became operational at the racetrack 2 29 enclosure. 2 30 Sec. 8. Section 99F.11, subsection 3, paragraphs a, b, and 2 31 c, Code 2015, are amended to read as follows: 2 32 a. If the gambling excursion originated at a dock located 2 33 in a city, one=half of one percent of theadjustedtaxable 2 34 gross receipts shall be remitted to the treasurer of the city 2 35 in which the dock is located and shall be deposited in the 3 1 general fund of the city. Another one=half of one percent of 3 2 theadjustedtaxable gross receipts shall be remitted to the 3 3 treasurer of the county in which the dock is located and shall 3 4 be deposited in the general fund of the county. 3 5 b. If the gambling excursion originated at a dock located 3 6 in a part of the county outside a city, one=half of one percent 3 7 of theadjustedtaxable gross receipts shall be remitted to 3 8 the treasurer of the county in which the dock is located and 3 9 shall be deposited in the general fund of the county. Another 3 10 one=half of one percent of theadjustedtaxable gross receipts 3 11 shall be remitted to the treasurer of the Iowa city nearest to 3 12 where the dock is located and shall be deposited in the general 3 13 fund of the city. 3 14 c.Eight=tenths of oneOne and six=tenths percent of the 3 15adjustedtaxable gross receipts tax shall be deposited in the 3 16 county endowment fund created in section 15E.311. 3 17 Sec. 9. Section 99F.11, subsection 3, paragraph d, 3 18 unnumbered paragraph 1, Code 2015, is amended to read as 3 19 follows: 3 20 Two=tenths of one percent of theadjustedtaxable gross 3 21 receipts tax shall be allocated each fiscal year as follows: 3 22 Sec. 10. Section 99F.11, subsection 3, paragraph e, Code 3 23 2015, is amended to read as follows: 3 24 e. The remaining amount of theadjustedtaxable gross 3 25 receipts tax shall be credited as provided in section 8.57, 3 26 subsection 5. 3 27 Sec. 11. GAMBLING GAMES LICENSE ISSUANCE == TERMS AND 3 28 CONDITIONS. 3 29 1. The racing and gaming commission shall grant a license 3 30 to conduct gambling games on a gambling structure pursuant to 3 31 the requirements of this section and chapter 99F by December 3 32 1, 2015. An application for a license to be granted under 3 33 this section shall be submitted by August 1, 2015, and shall 3 34 be limited to an application from a proposed licensee for 3 35 which the gambling structure at which gambling games are to 4 1 be conducted is to be located in a city with a population of 4 2 more than one hundred thousand and less than one hundred fifty 4 3 thousand in the latest preceding certified federal decennial 4 4 census and for which the governing body of the city has adopted 4 5 a resolution approving the submission of the application. 4 6 Notwithstanding any provision of chapter 99F to the contrary, 4 7 the initial license fee shall be waived for an applicant 4 8 submitting an application pursuant to the requirements of this 4 9 section. 4 10 2. A license to conduct gambling games issued pursuant to 4 11 this section shall provide that the premises of the licensee, 4 12 including the gaming floor, shall, notwithstanding any 4 13 provision of law to the contrary, be subject to the smoking 4 14 prohibition requirements of section 142D.3. 4 15 Sec. 12. COUNTY ENDOWMENT FUND ALLOCATION == LEGISLATIVE 4 16 STUDY. It is the intent of the general assembly that the 4 17 legislative council establish an interim study committee during 4 18 the 2020 legislative interim to review and make recommendations 4 19 concerning the appropriate percentage of the wagering tax to be 4 20 distributed for deposit in the county endowment fund created 4 21 in section 15E.311. 4 22 EXPLANATION 4 23 The inclusion of this explanation does not constitute agreement with 4 24 the explanation's substance by the members of the general assembly. 4 25 This bill concerns gambling games licensure under Code 4 26 chapter 99F and the wagering tax applied to gambling game 4 27 licensees under that Code chapter. 4 28 Code section 99F.1 is amended by adding two new definitions. 4 29 "Promotional play" is defined as wagers conducted with 4 30 tokens, chips, electronic credits, or other forms of cashless 4 31 wagering provided by the licensee without an exchange of money. 4 32 "Taxable gross receipts" is defined as adjusted gross receipts 4 33 less the total sums wagered through promotional play. 4 34 New Code section 99F.4E establishes a moratorium preventing 4 35 the racing and gaming commission from issuing a new license to 5 1 conduct gambling games on an excursion gambling boat, gambling 5 2 structure, or at a pari=mutuel racetrack for the period 5 3 beginning January 1, 2016, and ending December 31, 2025. 5 4 New Code section 99F.5A provides for a supplemental 5 5 distribution to a qualified sponsoring organization licensed 5 6 to operate gambling games equal to an amount representing 50 5 7 percent of the difference in the wagering tax paid by the 5 8 licensee based on calculating the tax on the taxable gross 5 9 receipts of the gambling game licensee instead of the adjusted 5 10 gross receipts as provided in the bill. 5 11 Code section 99F.11, providing for the wagering tax, is 5 12 amended to provide that the wagering tax is calculated on the 5 13 taxable gross receipts of a gambling game licensee instead of 5 14 the adjusted gross receipts. 5 15 Code section 99F.11 is further amended to increase, from 5 16 eight=tenths of a percent to one and six=tenths percent, the 5 17 amount of the adjusted gross receipts tax to be deposited in 5 18 the county endowment fund created in Code section 15E.311. The 5 19 bill further directs the legislative council to establish a 5 20 legislative study committee during the 2020 legislative interim 5 21 to examine the percentage of the adjusted gross receipts tax to 5 22 be deposited in the county endowment fund. 5 23 The bill requires the racing and gaming commission to grant 5 24 a license to conduct gambling games at a gambling structure 5 25 that is subject to the smoking prohibition requirements of 5 26 Code section 142D.3, by December 1, 2015. An application for 5 27 a license subject to the requirements of the bill shall be 5 28 submitted by August 1, 2015, and shall be limited to a proposed 5 29 licensee that will locate the gambling structure in a city 5 30 with a population of more than 100,000 and less than 150,000 5 31 and for which the governing body of the city has adopted a 5 32 resolution approving the submission of the application. The 5 33 bill also provides that the initial license fee shall be waived 5 34 for an applicant submitting an application for a gambling games 5 35 license pursuant to the requirements of the bill. LSB 1011XS (4) 86 ec/nh
