Bill Text: IA SSB1104 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to wagering taxes imposed on promotional play receipts.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-03-04 - Subcommittee recommends amendment and passage. [SSB1104 Detail]
Download: Iowa-2019-SSB1104-Introduced.html
Senate
Study
Bill
1104
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
relating
to
wagering
taxes
imposed
on
promotional
play
1
receipts.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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_____
Section
1.
Section
99F.1,
subsection
1,
Code
2019,
is
1
amended
to
read
as
follows:
2
1.
“Adjusted
gross
receipts”
means
the
gross
receipts
3
less
winnings
paid
to
wagerers
.
However,
“adjusted
gross
4
receipts”
does
not
include
and
less
promotional
play
receipts
5
received
after
the
date
in
any
fiscal
year
that
the
commission
6
determines
that
the
wagering
tax
imposed
pursuant
to
section
7
99F.11
on
all
licensees
in
that
fiscal
year
on
promotional
8
play
receipts
exceeds
twenty-five
million
eight
hundred
twenty
9
thousand
dollars
.
10
Sec.
2.
NEW
SECTION
.
99F.11A
Promotional
play
receipts
11
taxation.
12
1.
Notwithstanding
any
provision
of
law
to
the
contrary,
13
for
the
fiscal
year
beginning
July
1,
2019,
and
for
each
fiscal
14
year
thereafter
through
the
fiscal
year
beginning
July
1,
15
2022,
“adjusted
gross
receipts”
for
purposes
of
this
chapter
16
shall
include
an
amount
equal
to
the
applicable
percentage
of
17
promotional
play
receipts
received
prior
to
the
date
in
any
18
fiscal
year
that
the
racing
and
gaming
commission
determines
19
that
the
wagering
tax
imposed
pursuant
to
section
99F.11
on
20
all
licensees
in
that
fiscal
year
on
promotional
play
receipts
21
exceeds
twenty-five
million
eight
hundred
twenty
thousand
22
dollars.
23
2.
For
purposes
of
this
section,
“
applicable
percentage”
24
means
as
follows:
25
a.
For
the
fiscal
year
beginning
July
1,
2019,
and
ending
26
June
30,
2020,
eighty
percent.
27
b.
For
the
fiscal
year
beginning
July
1,
2020,
and
ending
28
June
30,
2021,
sixty
percent.
29
c.
For
the
fiscal
year
beginning
July
1,
2021,
and
ending
30
June
30,
2022,
forty
percent.
31
d.
For
the
fiscal
year
beginning
July
1,
2022,
and
ending
32
June
30,
2023,
twenty
percent.
33
3.
This
section
is
repealed
July
1,
2023.
34
EXPLANATION
35
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_____
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
1
the
explanation’s
substance
by
the
members
of
the
general
assembly.
2
This
bill
concerns
the
definition
of
adjusted
gross
receipts
3
for
purposes
of
Code
chapter
99F
governing
gambling
games.
4
The
bill
amends
the
definition
of
adjusted
gross
receipts
5
to
provide
that
adjusted
gross
receipts
does
not
include
6
promotional
play
receipts.
Currently,
adjusted
gross
receipts
7
includes
promotional
play
receipts
until
the
date
in
any
8
fiscal
year
that
the
wagering
tax
on
the
portion
of
adjusted
9
gross
receipts
representing
promotional
play
receipts
exceeds
10
$25,820,000.
However,
the
bill
establishes
new
Code
section
11
99F.11A
which
provides,
for
the
fiscal
period
beginning
July
1,
12
2019,
and
ending
June
30,
2023,
that
adjusted
gross
receipts
13
does
include
an
amount
equal
to
the
applicable
percentage
of
14
promotional
play
receipts
received
prior
to
the
date
in
any
15
fiscal
year
that
the
racing
and
gaming
commission
determines
16
that
the
wagering
tax
imposed
on
all
licensees
in
that
fiscal
17
year
on
promotional
play
receipts
exceeds
$25,820,000.
The
new
18
Code
section
provides
that
the
applicable
percentage
for
FY
19
2019-2020
is
80
percent,
for
FY
2020-2021,
60
percent,
for
FY
20
2021-2022,
40
percent,
and
for
FY
2022-2023,
20
percent.
This
21
new
Code
section
is
repealed
July
1,
2023.
The
bill
provides,
22
then,
that
beginning
July
1,
2023,
that
adjusted
gross
receipts
23
does
not
include
any
promotional
play
receipts.
24
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