House Bill 3663

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    Florida House of Representatives - 1998                HB 3663

        By Representatives Westbrook, King, Jones, Tobin and
    Fasano





  1                      A bill to be entitled

  2         An act relating to pari-mutuel wagering;

  3         amending s. 550.09511, F.S.; revising language

  4         with respect to jai alai taxes; providing that

  5         jai alai permitholders should pay their fair

  6         share of taxes but should not be subjected to

  7         taxes in an amount greater than their operating

  8         earnings; defining the term "operating

  9         earnings"; amending s. 550.01215, F.S.;

10         providing a time period for jai alai

11         permitholders to apply for certain permits or

12         amendments to permits; providing a time period

13         for the Division of Pari-mutuel Wagering to

14         issue such permits; providing an effective

15         date.

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Subsection (1) of section 550.09511,

20  Florida Statutes, is amended to read:

21         550.09511  Jai alai taxes; abandoned interest in a

22  permit for nonpayment of taxes.--

23         (1)(a)  Pari-mutuel wagering at jai alai frontons in

24  this state is an important business enterprise, and taxes

25  derived therefrom constitute a part of the tax structure which

26  funds operations of the state.  Jai alai permitholders should

27  pay their fair share of these taxes to the state. As further

28  prescribed in paragraph (b), this business interest should not

29  be taxed to such an extent as to cause any fronton which is

30  operated under sound business principles to be forced out of

31  business.  Due to the need to protect the public health,

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    Florida House of Representatives - 1998                HB 3663

    588-109-98






  1  safety, and welfare, the gaming laws of the state provide for

  2  the jai alai industry to be highly regulated and taxed.  The

  3  state recognizes that there exist identifiable differences

  4  between jai alai permitholders based upon their ability to

  5  operate under such regulation and tax system.

  6         (b)  Under the taxation system in this section, which

  7  is based upon revenues instead of profits, a jai alai

  8  permitholder should pay its fair share of taxes to the state,

  9  but it should not be subjected to taxes which might cause it

10  to operate at a loss, impair its ability to service debt or to

11  maintain its fixed assets, or otherwise jeopardize its

12  existence and the jobs of its employees.  Any jai alai

13  permitholder which has incurred state taxes on handle and

14  admissions in an amount which is in excess of its operating

15  earnings in a fiscal year ending during or after the state

16  fiscal year which ends June 30, 1998, will be entitled to

17  credit the amount of such excess taxes against state

18  pari-mutuel taxes due and payable on and after July 1, 1998,

19  during its next ensuing meets.  Operating earnings are hereby

20  defined as total revenues from pari-mutuel operations net of

21  state taxes and fees less total expenses, but excluding

22  deductions for interest, depreciation, and amortization,

23  payments to affiliated entities other than for reimbursement

24  of expenses related to pari-mutuel operations, and any

25  increase in an officer's or director's annual compensation

26  above the amount paid during the year ended December 31, 1997.

27         Section 2.  Subsection (10) is added to section

28  550.01215, Florida Statutes, to read:

29         550.01215  License application; periods of operation;

30  bond, conversion of permit.--

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    Florida House of Representatives - 1998                HB 3663

    588-109-98






  1         (10)  Notwithstanding any other provision in this

  2  section, any jai alai permitholder may apply for a license or

  3  amend its license to conduct performances for fiscal year

  4  1998-1999, within 10 days after the effective date of this

  5  act. The division shall issue such license within 15 days

  6  after receipt of such application.

  7         Section 3.  This act shall take effect July 1 of the

  8  year in which enacted.

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11                          HOUSE SUMMARY

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      Revises a provision of law relating to taxes with respect
13    to jai alai permitholders to provide that such
      permitholders should pay their fair share of taxes but
14    should not be subjected to taxes in an amount greater
      than their operating earnings.  Defines the term
15    "operating earnings" to mean total revenues from
      pari-mutuel operations net of state taxes and fees less
16    total expenses, but excluding deductions for interest,
      depreciation, and amortization, payments to affiliated
17    entities other than for reimbursement of expenses related
      to pari-mutuel operation, and any increase in an
18    officer's or director's annual compensation above the
      amount paid during the year ended December 31, 1997.
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20    Provides that any jai alai permitholder may apply for a
      license or amend its license to conduct performances for
21    fiscal year 1998-1999, within 10 days after the effective
      date of the act and directs the Division of Pari-mutuel
22    Wagering to issue such license within 15 days of receipt
      of such application.
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