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Bill

HSB 236

A bill for an act relating to the sales tax imposed on amusement devices.

2025-2026 Regular Session

HSB 236 imposes a 6% sales tax on amusement device revenues, impacting operators and potentially raising costs for consumers while clarifying tax obligations.

Subcommittee recommends passage.
#amusementdevices #salestaxes
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WeVote Research Nonpartisan
Bill Summary · HSB 236

Summary of HSB 236: Sales Tax on Amusement Devices

Bill Overview

Bill Number: HSB 236
Title: A bill for an act relating to the sales tax imposed on amusement devices.
Status: Subcommittee recommends passage.
Introduced: February 20, 2025
Classification: Proposed bill
Subject: Amusement devices, sales taxes

Purpose and Intent

The primary purpose of HSB 236 is to amend the existing sales tax regulations concerning amusement devices and related activities within the state. The bill aims to clarify the tax obligations for operators of various amusement devices, ensuring that sales tax is appropriately applied to the revenue generated from these activities.

Key Provisions

  • Sales Tax Rate: The bill imposes a 6% sales tax on the sales price derived from the operation of all forms of amusement devices, including:

    • Games of skill
    • Games of chance
    • Raffles
    • Bingo games
    • Card game tournaments

  • Tax Collection: The tax is to be collected from the operator of the amusement devices in the same manner as sales tax is collected on tickets or admissions.

  • Exemptions: The bill specifies that the tax does not legalize any games of skill or chance that are currently prohibited by law. Additionally, it outlines that activities exempt from sales tax under section 423.3, subsection 78, will not be subject to this tax.

  • Scope of Taxation: The tax applies to:

    • Revenue from games of skill and chance
    • Musical devices, weighing machines, shooting galleries, billiard and pool tables, bowling alleys, pinball machines, and slot-operated devices selling merchandise not subject to general sales taxes.
    • Any other amusement operated for profit not specifically mentioned.

Impact

Who Would Be Affected

  • Operators of Amusement Devices: Businesses and individuals operating amusement devices and related activities will be directly impacted as they will be responsible for collecting and remitting the sales tax.
  • Consumers: Patrons of amusement devices may see a slight increase in costs due to the implementation of the sales tax on their purchases.

Procedural Aspects

  • The bill was introduced on February 20, 2025, and referred to the Ways and Means Committee.
  • A subcommittee meeting was held on February 25, 2025, with a recommendation for passage made on March 3, 2025.

Conclusion

HSB 236 seeks to modernize and clarify the sales tax framework for amusement devices in the state, ensuring that operators comply with tax obligations while maintaining the integrity of existing laws regarding prohibited games. The bill's passage could lead to increased revenue for the state while impacting the operational costs for amusement device operators.

Compiled from official sources — confirm details with the bill’s official record.

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