Bill
Bill > HSB91
IA HSB91
IA HSB91A bill for an act relating to state income tax withholdings on winnings from sports wagering, and including effective date provisions.(See HF 794.)
summary
Introduced
01/28/2025
01/28/2025
In Committee
01/28/2025
01/28/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill specifies all winnings from sports wagering are S.F. _____ H.F. _____ 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.
AI Summary
This Study Bill clarifies that all winnings from sports wagering are considered income earned in Iowa and are therefore subject to both Iowa and federal income tax laws, aligning them with existing rules for slot machine winnings. Specifically, if federal income tax is required to be withheld from sports wagering winnings, this bill mandates that Iowa state income tax must also be withheld from those same winnings, ensuring that state taxes are collected at the point of winning. This change, which also specifies that the bill takes effect on January 1, 2026, aims to standardize tax treatment for gambling winnings and ensure state revenue collection from this growing sector.
Committee Categories
Budget and Finance
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Ways and Means (House)
Last Action
Committee report approving bill, renumbered as HF 794. (on 03/05/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HSB91 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HSB91.html |
Loading...