Iowa House Bill HSB723

Iowa 2023-2024 Regular Session

• Introduced: 2/21/24
• Refer: 2/21/24

Caption

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

Impact

The bill also outlines new rules regarding the lottery, which include the prohibition of lottery couriers—those who procure lottery tickets on behalf of others without a bona fide relationship. It introduces definitions for what constitutes a bona fide social relationship and holds accountable individuals and businesses that engage with unauthorized couriers. This is aimed at improving the security and integrity of the lottery and could potentially reduce illicit activities in ticket procurement.

Summary

House Study Bill 723 addresses multiple aspects of regulation under the jurisdiction of the Iowa Department of Revenue. Key provisions include updates concerning the confidentiality of records, taxation on sports wagering winnings, and the regulation of the lottery system. Specifically, the bill stipulates that winnings from sports wagering are to be classified as Iowa earned income, thus making them liable for both state and federal income tax. Any winnings exceeding $5,000 would require state tax withholding, aligning Iowa's taxation policies with those at the federal level. This change could increase the state's revenue from gaming activities significantly.

Contention

Another significant part of HSB723 involves adjustments to cigarette and tobacco tax collection processes, wherein permit applicants for tobacco-related sales would be required to file electronically starting in 2025. The bill also highlights stricter regulations on individuals holding positions within the alcoholic beverage commission, prohibiting them from holding other government positions or from influencing political candidates. These changes intend to ensure transparency and separation of interests within the revenue department and its associated regulatory bodies, though they may attract opposition from those favoring less governmental oversight.