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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