House Bill 3663er

    ENROLLED

    1998 Legislature                                    CS/HB 3663



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  2         An act relating to jai alai permitholders;

  3         amending s. 550.01215, F.S.; allowing any jai

  4         alai permitholder to apply, during a specified

  5         period, for licensure to conduct performances

  6         in fiscal year 1998-1999; requiring the

  7         Division of Pari-mutuel Wagering to issue the

  8         license within a specified period of time;

  9         amending s. 550.09511, F.S.; qualifying the

10         provision that jai alai permitholders should

11         pay their fair share of taxes on pari-mutuel

12         wagering; providing that the amount of taxes on

13         handle and admissions which is imposed on such

14         a permitholder should not exceed the

15         permitholder's operating earnings and that

16         permitholders may apply any excess amount

17         against future taxes due; defining the term

18         "operating earnings"; providing an effective

19         date.

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

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23         Section 1.  Subsection (10) is added to section

24  550.01215, Florida Statutes, to read:

25         550.01215  License application; periods of operation;

26  bond, conversion of permit.--

27         (10)  Notwithstanding any other provision of this

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

29  for an amendment of its license, to conduct performances for

30  fiscal year 1998-1999 if the date of the application is later

31  than June 30, 1998, and earlier than July 11, 1998. The


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CODING: Words stricken are deletions; words underlined are additions.




    ENROLLED

    1998 Legislature                                    CS/HB 3663



  1  division must issue such a license within 15 days after

  2  receiving the application.

  3         Section 2.  Subsection (1) of section 550.09511,

  4  Florida Statutes, is amended to read:

  5         550.09511  Jai alai taxes; abandoned interest in a

  6  permit for nonpayment of taxes.--

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

  8  this state is an important business enterprise, and taxes

  9  derived therefrom constitute a part of the tax structure which

10  funds operations of the state.  Jai alai permitholders should

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

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

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

14  operated under sound business principles to be forced out of

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

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

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

18  state recognizes that there exist identifiable differences

19  between jai alai permitholders based upon their ability to

20  operate under such regulation and tax system.

21         (b)  Under the taxation system set forth in this

22  section, which is based upon revenues instead of profits, a

23  jai alai permitholder should pay its fair share of taxes to

24  the state, but it should not be subjected to taxes that might

25  cause it to operate at a loss, impair its ability to service

26  debt or to maintain its fixed assets, or otherwise jeopardize

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

28  permitholder that has incurred state taxes on handle and

29  admissions in an amount that exceeds its operating earnings in

30  a fiscal year that ends during or after the 1997-1998 state

31  fiscal year is entitled to credit the excess amount of the


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    ENROLLED

    1998 Legislature                                    CS/HB 3663



  1  taxes against state pari-mutuel taxes due and payable after

  2  June 30, 1998, during its next ensuing meets. As used in this

  3  paragraph, the term "operating earnings" means total revenues

  4  from pari-mutuel operations net of state taxes and fees less

  5  total expenses but excluding from expenses any deductions for

  6  interest, depreciation and amortization, payments to

  7  affiliated entities other than for reimbursement of expenses

  8  related to pari-mutuel operations, and any increase in an

  9  officer's or director's annual compensation above the amount

10  paid during calendar year 1997.

11         Section 3.  This act shall take effect July 1, 1998.

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