Bills › 91st General Assembly
Relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions
Sponsored by the Senate Ways and Means (companion To Hf 794 By Committee on Ways and Means) Committee
Proposed by the Department of Revenue · their explanation · all agency proposals
Where it is now
- Done: IntroducedFebruary 18, 2025
- Done: SubcommitteeFebruary 19, 2025
- Done: Senate committeeMarch 11, 2025
- Done: Passes the SenateMarch 18, 202548–0
- Done: House committeeMarch 18, 2025
- Done: Passes the HouseMarch 19, 202596–0
- Done: To the GovernorMarch 28, 2025
- Done: Signed into lawMarch 28, 2025
Signed into law What’s a funnel?
What’s in it
AI summary People who win money from sports betting in Iowa will have to pay state and federal income taxes on those winnings. If the federal government takes taxes out of the winnings, the state will also take out Iowa income tax at the same time.1
Read the official explanation
This 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 are subject to federal income tax withholding, the bill requires Iowa state income tax be withheld from the winnings. The bill takes effect on January 1, 2026.
Why it matters. People who win money from sports wagering will have those winnings treated as earned income subject to Iowa and federal income taxes. If federal taxes are withheld from these winnings, Iowa state income tax must also be withheld.2
Senate subcommittee
Named February 19, 2025 (as SSB 1152). On February 25, 2025 it recommended passage.
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
Lobbying
1 for · 0 against · 11 undecided · Who →
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91st General Assembly