Statewide, Iowa (RI) – A senate subcommittee has unanimously voted to require that online sports wagering companies withhold state taxes from Iowans who win at least $5,000.
Tyler Ackerson of the Iowa Department of Revenue says the bill makes it easier for sports book operators to know when to withhold taxes.
The bill would align Iowa’s withholding requirement with federal tax policy.
All winning bets on sporting events are considered ordinary taxable income and Iowans are to pay a 6.75 percent tax on those winnings — regardless of the amount of their winning wagers.
