Bills › 90th General Assembly
HSB 723
Where it is now
- Done: IntroducedFebruary 21, 2024
- Done: SubcommitteeFebruary 21, 2024
- Done: House committeeApril 18, 2024
- Skipped: Passes the HouseContinued as HF 2710
- Skipped: Senate committee
- Done: Passes the SenateApril 15, 2024
- Next: To the Governor
- Next: Signed into law
Became HF 2710 → Its progress continues under the new number. Go to HF 2710 What’s a funnel?
What’s in it
AI summary This bill changes how the Department of Revenue handles taxes, lottery games, and alcohol rules. It treats sports betting winnings as income that can be taxed and bans certain people, like lottery couriers or specific state employees, from participating in lottery games. Additionally, it requires tobacco businesses to file their tax paperwork electronically and sets new rules to prevent conflicts of interest for people in charge of alcohol licensing.1
The official explanation
This bill relates to the duties and responsibilities of the department of revenue (department) including confidentiality of records, sports wagering, the lottery, cigarette and tobacco taxes, and alcoholic beverages. DIVISION I —— CONFIDENTIALITY OF RECORDS.19.72(8). _____ The division takes effect upon enactment. DIVISION II —— SPORTS WAGERING. The bill specifies all winnings from sports wagering are considered Iowa earned income and subject to Iowa and federal income tax laws. If sports wagering winnings exceed $5,000, the bill requires Iowa state income tax be withheld from the winnings.
Read the full explanation
DIVISION III —— LOTTERY. The bill defines a “lottery courier” to mean a person who offers or undertakes to procure tickets or shares in lottery games from a lottery retailer on behalf of another person, and who does not have a bona fide social relationship with that other person. The bill also defines “bona fide social relationship”. The bill prohibits a person to operate as a lottery courier or to do business with a lottery courier.27. The bill updates and expands the circumstances where a ticket shall not be purchased by or a prize awarded to certain persons. The bill adds a state employee who has access to confidential information which may compromise the integrity of the lottery to the list of persons prohibited from purchasing a lottery ticket or claiming a lottery prize. The bill makes the following lottery information confidential: ticket order history; ticket inventory; or any records that if disclosed could impair or adversely impact the security, integrity, or fairness of a lottery game or the security of lottery retailers. DIVISION IV —— CIGARETTE AND TOBACCO TAXES AND REPORTS —— ELECTRONIC FILING. The bill updates the definition of “units sold” when measuring individual cigarettes sold in the state to mean packs required to bear the excise stamp of the state, and updates “units sold” for roll-your-own tobacco to mean roll-your-own tobacco on which tax is due pursuant to Code chapter 453A. _____ tobacco-related retail permits but the department shall issue the permit to the applicant on behalf of the city or county. The bill requires the city or county to use the electronic portal of the department to process retail permit applications. If a city or county is unable to use the electronic portal of the department, the city or county may request permission from the director of revenue to process retail applications by another method. The bill provides that all tobacco-related permit fees shall be collected by the department, and the department shall credit the fees to the city or county where the permit is in effect. The bill requires cigarette and tobacco tax returns, reports, invoices, bonds, and payments to be filed with or submitted to the department electronically beginning on or after January 1, 2025. A person required to make a submission electronically by the bill may request permission from the director of revenue to make the submission in another manner. DIVISION V —— ALCOHOLIC BEVERAGES. The bill specifies that members of the alcoholic beverages commission (members) shall not hold any other office or position under the laws of this state or any other state. The bill prohibits a member of the commission from influencing or persuading others to adopt political views of the member or favor any particular elective or appointive candidate. The bill specifies that not more than two members shall have any interest in alcohol-related enterprises. The bill prohibits the director of the department of revenue from having any interest in alcohol-related enterprises. The bill prohibits an employee of the department of revenue to license, permit, or participate in the licensing or permitting of a person, business, or organization under the laws governing alcoholic beverages, if the employee has an ownership interest related to that person, business, or organization. _____ from enforcing any law or rule governing alcoholic beverages against a person, business, or organization, if the employee has an ownership interest related to that person, business, or organization. The bill provides the director or an employee who violates the bill shall, in addition to any other penalties provided by law, be subject to suspension or discharge from employment. The bill does not prohibit a member or the director of revenue or an employee of the department of revenue from lawfully purchasing and keeping an alcoholic beverage for personal use.39(1)(b).
Changed since by amendments H-8392, S-5157; see Amendments.
House subcommittee
Named February 21, 2024. On March 5, 2024 it recommended passage. Vote Total: 2-1.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Amends§123.13§123.39§123.5§422.16§422.29§453A.1§453A.13§453A.14§453A.15§453A.16§453A.17§453A.18§453A.23§453A.24§453A.35§453A.39§453A.40§453A.45§453A.46§453A.47A§453A.6§453A.8§453C.1§453D.5§99F.18§99G.24§99G.3§99G.30§99G.31§99G.34
Lobbying
3 for · 5 against · 25 undecided · Who →
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90th General Assembly