A bill for an act modifying state income tax withholdings for winnings derived from slot machines, and including effective date provisions.

HSB 733 modifies Iowa's state income tax rules for slot machine winnings by removing the current $1,200 withholding threshold. Instead, tax withholding on slot machine winnings will now only apply if the winnings are required to be reported to the federal IRS (as per federal reporting rules). This change directly affects individuals who win slot machine payouts that meet federal reporting requirements, shifting the trigger from a fixed dollar amount to federal tax reporting obligations. The bill takes effect immediately upon enactment and aligns state withholding with federal reporting practices for gambling winnings.