IA
Iowa House Bill HSB723

Iowa 2023-2024 Regular Session

Iowa House Bill HSB723

Introduced
2/21/24  
Introduced
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.

Latest HSB723 Activity

Companion Bills

IA SSB3179

Related 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 SF 2427.)

IA SF2427

Replaced by 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. (Formerly SSB 3179.)

IA HF2710

Replaced by 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.(Formerly HSB 723.)

Previously Filed As

IA SSB3179

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 SF 2427.)

IA HF2710

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.(Formerly HSB 723.)

IA SF2427

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. (Formerly SSB 3179.)

IA HSB91

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.(See HF 794.)

IA SSB1152

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.(See SF 605.)

IA HF794

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.(Formerly HSB 91.)

IA SF605

A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions. (Formerly SSB 1152.) Effective date: 01/01/2026.

IA HSB724

A bill for an act relating to the administration of state taxation, the lottery, and alcoholic beverages under the purview of the department of revenue, making appropriations, and including effective date and retroactive applicability provisions.

IA HSB694

A bill for an act relating to the administration of state taxation, the lottery, and alcoholic beverages under the purview of the department of revenue, making appropriations, and including effective date and retroactive applicability provisions.

IA HSB187

A bill for an act relating to state and local finance and the administration of the tax and related laws by the department of revenue, and including effective date, applicability, and retroactive applicability provisions.(See HF 715.)

Similar Bills

IA SSB3179

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 SF 2427.)

IA HF2710

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.(Formerly HSB 723.)

IA SF2427

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. (Formerly SSB 3179.)

IA SF612

A bill for an act relating to state and local taxation and regulations by changing certain tax credits, cigarette and tobacco-related regulations, and certain city budget certification deadlines, providing for penalties, and including retroactive applicability and effective date provisions. (Formerly SSB 1153.) Effective date: 06/06/2025, 07/01/2025. Applicability date: 01/01/2025.

IA SSB1153

A bill for an act relating to cigarette and tobacco product regulations including vapor products by requiring the electronic filing of returns and other related matters, and providing penalties.(See SF 612.)

IA HSB90

A bill for an act relating to cigarette and tobacco product regulations including vapor products by requiring the electronic filing of returns and other related matters, and providing penalties.(See HF 1052.)

IA HF1052

A bill for an act relating to state and local taxation and regulations by changing certain tax credits, cigarette and tobacco-related regulations, and certain city budget certification deadlines, providing for penalties, and including retroactive applicability and effective date provisions.(Formerly HSB 90.)

IA HF21

A bill for an act relating to nicotine solution products, including taxation of such products, making appropriations, and making penalties applicable.