Iowa HF 2710: A bill for an act relating to the duties and responsibilities of the department of revenue including sports wagering, the lottery, cigarette and tobacco taxes, alcoholic beverages, and including effective date provisions.

Bill Text

House File 2710 - Introduced
HOUSE FILE 2710
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO HSB 723)
A BILL FOR
An Act relating to the duties and responsibilities of the1
department of revenue including sports wagering, the2
lottery, cigarette and tobacco taxes, alcoholic beverages,3
and including effective date provisions.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:5
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H.F. 2710
DIVISION I1
SPORTS WAGERING2
Section 1. Section 99F.18, Code 2024, is amended to read as3
follows:4
99F.18 Tax on winnings.5
1. All winnings derived from slot machines operated6
pursuant to this chapter are Iowa earned income and are subject7
to state and federal income tax laws. An amount deducted from8
winnings for payment of the state tax, pursuant to section9
422.16, subsection 2, shall be remitted to the department of10
revenue on behalf of the winner.11
2. All winnings from sports wagering authorized under this12
chapter are Iowa earned income and subject to state and federal13
income tax laws. An amount deducted from winnings for payment14
of state tax pursuant to section 422.16, subsection 2, shall be15
remitted to the department of revenue on behalf of the winner.16
Sec. 2. Section 422.16, subsection 2, paragraph d, Code17
2024, is amended to read as follows:18
d. For the purposes of this subsection, state income tax19
shall be withheld on winnings in excess of six hundred dollars20
derived from gambling activities authorized under chapter21
99B or 99G. State income tax shall be withheld on winnings22
in excess of one thousand dollars from gambling activities23
authorized under chapter 99D. State income tax shall be24
withheld on winnings in excess of one thousand two hundred25
dollars derived from slot machines authorized under chapter26
99F. State income tax shall be withheld on winnings from27
sports wagering authorized under chapter 99F whenever federal28
income tax is required to be withheld from the same winnings in29
accordance with the Internal Revenue Code.30
DIVISION II31
LOTTERY32
Sec. 3. Section 99G.3, Code 2024, is amended by adding the33
following new subsections:34
NEW SUBSECTION. 3A. “Bona fide social relationship” means35
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H.F. 2710
a real, genuine, unfeigned social relationship between two or1
more persons, where each person has an established knowledge of2
the other, which has not arisen for the purpose of gambling.3
NEW SUBSECTION. 9A. “Lottery courier” means a person who4
offers or undertakes to procure tickets or shares in lottery5
games from a lottery retailer on behalf of another person, and6
who does not have a bona fide social relationship with that7
other person.8
Sec. 4. Section 99G.24, subsection 7, Code 2024, is amended9
by adding the following new paragraph:10
NEW PARAGRAPH. j. The department determines, based upon11
available information, that either the structure or activities12
of the applicant’s business is likely to violate provisions of13
this chapter, or any regulation, policy, or procedure of the14
division.15
Sec. 5. Section 99G.30, Code 2024, is amended by adding the16
following new subsections:17
NEW SUBSECTION. 8. A person shall not do any of the18
following:19
a. Act or operate as a lottery courier.20
b. Do business with a lottery courier.21
NEW SUBSECTION. 9. A retailer shall not knowingly sell22
tickets or shares in a lottery game to any of the following:23
a. A lottery courier.24
b. An employee or agent of a lottery courier.25
Sec. 6. Section 99G.31, subsection 3, paragraph g, Code26
2024, is amended by striking the paragraph and inserting in27
lieu thereof the following:28
g. A ticket or share issued by the division shall not29
be purchased by and no prize shall be paid to any of the30
following:31
(1) A member of the board.32
(2) An officer or employee of the department.33
(3) An officer or employee of the state providing services34
to the department to administer this chapter if such officer35
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H.F. 2710
or employee has access to confidential information which may1
compromise the integrity of the lottery.2
(4) A spouse, child, sibling, or parent residing as a member3
of the same household in the principal place of residence of4
any person described in subparagraphs (1) through (3).5
Sec. 7. Section 99G.34, Code 2024, is amended by adding the6
following new subsection:7
NEW SUBSECTION. 9. Ticket order history; ticket inventory;8
or any records that if disclosed could impair or adversely9
impact the security, integrity, or fairness of a lottery game10
or the security of lottery retailers.11
DIVISION III12
CIGARETTE AND TOBACCO TAXES AND REPORTS —— ELECTRONIC FILING13
Sec. 8. Section 453A.1, subsection 27, Code 2024, is amended14
to read as follows:15
27. “State permit” shall mean and include all permits issued16
by the department to distributors, wholesalers, and retailers17
under this chapter except the permits issued to retailers18
approved by cities and counties pursuan