House Study Bill 91 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act relating to state income tax withholdings on winnings 1 from sports wagering, and including effective date 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1389XD (3) 91 jm/jh
S.F. _____ H.F. _____ Section 1. Section 99F.18, Code 2025, is amended to read as 1 follows: 2 99F.18 Tax on winnings. 3 1. All winnings derived from slot machines operated 4 pursuant to this chapter are Iowa earned income and are subject 5 to state and federal income tax laws. An amount deducted from 6 winnings for payment of the state tax, pursuant to section 7 422.16, subsection 2 , shall be remitted to the department of 8 revenue on behalf of the winner. 9 2. All winnings from sports wagering authorized under this 10 chapter are Iowa earned income and are subject to state and 11 federal income tax laws. An amount deducted from winnings for 12 payment of state tax pursuant to section 422.16, subsection 2, 13 shall be remitted to the department of revenue on behalf of the 14 winner. 15 Sec. 2. Section 422.16, subsection 2, paragraph d, Code 16 2025, is amended to read as follows: 17 d. For the purposes of this subsection , state income tax 18 shall be withheld on winnings in excess of six hundred dollars 19 derived from gambling activities authorized under chapter 20 99B or 99G . State income tax shall be withheld on winnings 21 in excess of one thousand dollars from gambling activities 22 authorized under chapter 99D . State income tax shall be 23 withheld on winnings in excess of one thousand two hundred 24 dollars derived from slot machines authorized under chapter 25 99F . State income tax shall be withheld on winnings from 26 sports wagering authorized under chapter 99F whenever federal 27 income tax is required to be withheld from the same winnings in 28 accordance with the Internal Revenue Code. 29 Sec. 3. EFFECTIVE DATE. This Act takes effect January 1, 30 2026. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanations substance by the members of the general assembly. 34 This bill specifies all winnings from sports wagering are 35 -1- LSB 1389XD (3) 91 jm/jh 1/ 2
S.F. _____ H.F. _____ considered Iowa earned income and subject to Iowa and federal 1 income tax laws. If sports wagering winnings are subject to 2 federal income tax withholding, the bill requires Iowa state 3 income tax be withheld from the winnings. 4 The bill takes effect on January 1, 2026. 5 -2- LSB 1389XD (3) 91 jm/jh 2/ 2