HSB 719

This bill relates to tax rates on receipts from gambling games. _____ Under current law, if a person licensed under Code chapter 99F (licensee) is an excursion gambling boat or gambling structure, the tax rate imposed each fiscal year on any amount of adjusted gross receipts over $3 million is percent. Under the bill, the tax rate is decreased to percent for FY 2024-2025, percent for FY 2025-2026, and percent for FY 2026-2027 and thereafter. Under current law, if the licensee is a racetrack enclosure conducting gambling games and another licensee that is an excursion gambling boat or gambling structure is located in the same county and the licensee of the racetrack enclosure has not been issued a table games license during the fiscal year or if the adjusted gross receipts from gambling games of the licensee in the prior fiscal year were less than $100 million, the tax rate imposed each fiscal year on any amount of adjusted gross receipts over $3 million is percent. Under the bill, the tax rate is decreased to percent for FY 2024-2025, percent for FY 2025-2026, and percent for FY 2026-2027 and thereafter. Under current law, if the licensee is a racetrack enclosure conducting gambling games and another licensee that is an excursion gambling boat or gambling structure is located in the same county and the licensee of the racetrack enclosure has been issued a table games license during the fiscal year or prior fiscal year and the adjusted gross receipts from gambling games of the licensee in the prior fiscal year were $100 million or more, the tax rate imposed each fiscal year on any amount of adjusted gross receipts over $3 million is percent on adjusted gross receipts received prior to the operational date and percent on adjusted gross receipts received on or after the operational date. Under the bill, the tax rate is altered to percent for FY 2024-2025, percent for FY 2025-2026, and percent for FY 2026-2027 and thereafter, regardless of operational date. _____ conducting gambling games and no licensee that is an excursion gambling boat or gambling structure is located in the same county, the tax rate imposed each fiscal year on any amount of adjusted gross receipts over $3 million is percent. Under the bill, the tax rate is decreased to percent for FY 2024-2025, percent for FY 2025-2026, and percent for FY 2026-2027 and thereafter.11 on the adjusted gross receipts from gambling games are used to support a variety of programs and funds including the county endowment fund; operational support grants, community cultural grants, and regional tourism marketing of the economic development authority; the rebuild Iowa infrastructure fund; the revenue bonds debt service fund and revenue bonds federal subsidy holdback fund; the water quality infrastructure fund; the Iowa skilled worker and job creation fund; and the levee improvement fund.