Iowa SF2085 imposes a tax on event-driven contracts traded on dedicated contract markets, requiring permits and adjusting state income taxes.

Iowa SF2085 introduces regulations for event-driven contracts traded on dedicated contract markets. The bill mandates a permit for businesses to operate in the state, imposes a 20% tax on adjusted revenues from these contracts, and adjusts individual and corporate income taxes. It defines "event-driven contract" as a financial derivative providing a fixed binary payout based on specific future events. The bill also requires state income tax withholding on gains exceeding $600 from these contracts. Permits cost $10 million initially and $100,000 annually.

Iowa SF2085 imposes a tax on event-driven contracts traded on dedicated contract markets, requiring permits and adjusting state income taxes.

Iowa SF2085 introduces regulations for event-driven contracts traded on dedicated contract markets. The bill mandates a permit for businesses to operate in the state, imposes a 20% tax on adjusted revenues from these contracts, and adjusts individual and corporate income taxes. It defines "event-driven contract" as a financial derivative providing a fixed binary payout based on specific future events. The bill also requires state income tax withholding on gains exceeding $600 from these contracts. Permits cost $10 million initially and $100,000 annually.