Legislators who are part of an Iowa House panel have advanced a bill that would lower the tax rate for the state’s casinos, according to a local report in the Iowa Capital Dispatch.
Iowa is home to 19 brick-and-mortar casino destinations. Advocates of the bill hope lowering the tax rate will help the state’s casinos compete against gambling facilities in the neighboring states of Nebraska and Illinois.
House Study Bill 719 aims to reduce the graduated tax rate for gross revenue generated from slots and table games.
The current law on the books applies a 22% rate for casinos that bring in at least $3m in gross gaming revenue.
The proposed bill would lower that rate by a percentage point each year for the next three years, resulting in a 19% rate by the 2027 fiscal year.
This bill is not the only tax cut discussion on the table in Iowa to reduce taxes around the state. The Governor has proposed further reducing individual state income tax rates, according to the local report.
Representative Jane Bloomingdale told local news that cutting taxes for casinos is the next step if the state intends to give taxes breaks to everyone.
She commented, “We’re lowering taxes for individuals, we’re lowering taxes for corporations, but we’re not lowering taxes for casinos.
“It just doesn’t seem fair. If we’re going to lower taxes for everyone across the state of Iowa, we maybe need to look at everyone.”
The Iowa Racing and Gaming Commission recently reported that the state’s gambling revenue reached more than $4bn in 2023.
