A bill for an act relating to event-driven contracts traded on dedicated contract markets by requiring a permit to conduct business in the state, imposing a tax on adjusted revenues, making adjustments to individual and corporate income taxes, providing for fees, and including retroactive applicability provisions.

Summary

The bill makes any digital marketplace that trades binary contracts tied to sports, elections, legislation, or economic indicators obtain a state permit, pay a $10 million initial fee and $100 k annual renewal, and pay a 20 % tax on revenues generated from Iowa traders. It also changes how individuals and corporations report gains and losses from these contracts for Iowa income tax, requiring withholding on gains over $600. The measures aim to regulate and generate revenue from these emerging financial products.

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