Senate Bill 0762

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



    Florida Senate - 1999                                   SB 762

    By Senator Geller





    29-410-99

  1                      A bill to be entitled

  2         An act relating to thoroughbred racing;

  3         amending ss. 550.0951, 550.09514, F.S.;

  4         reducing the tax on handle for permitholders to

  5         1 percent; providing an effective date.

  6

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

  8

  9         Section 1.  Paragraph (a) of subsection (3) of section

10  550.0951, Florida Statutes, 1998 Supplement, is amended to

11  read:

12         550.0951  Payment of daily license fee and taxes.--

13         (3)  TAX ON HANDLE.--Each permitholder shall pay a tax

14  on contributions to pari-mutuel pools, the aggregate of which

15  is hereinafter referred to as "handle," on races or games

16  conducted by the permitholder. The tax is imposed daily and is

17  based on the total contributions to all pari-mutuel pools

18  conducted during the daily performance.  If a permitholder

19  conducts more than one performance daily, the tax is imposed

20  on each performance separately.

21         (a)  The tax on handle for thoroughbred horse racing,

22  harness horse racing, and quarter horse racing is 1 3.3

23  percent of the handle.

24         Section 2.  Paragraph (a) of subsection (2) of section

25  550.09515, Florida Statutes, 1998 Supplement, is amended to

26  read:

27         550.09515  Thoroughbred horse taxes; abandoned interest

28  in a permit for nonpayment of taxes.--

29         (1)  Pari-mutuel wagering at thoroughbred horse

30  racetracks in this state is an important business enterprise,

31  and taxes derived therefrom constitute a part of the tax

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    Florida Senate - 1999                                   SB 762
    29-410-99




  1  structure which funds operation of the state. Thoroughbred

  2  horse permitholders should pay their fair share of these taxes

  3  to the state. This business interest should not be taxed to

  4  such an extent as to cause any racetrack which is operated

  5  under sound business principles to be forced out of business.

  6  Due to the need to protect the public health, safety, and

  7  welfare, the gaming laws of the state provide for the

  8  thoroughbred horse industry to be highly regulated and taxed.

  9  The state recognizes that there exist identifiable differences

10  between thoroughbred horse permitholders based upon their

11  ability to operate under such regulation and tax system and at

12  different periods during the year.

13         (2)

14         (a)  Notwithstanding the provisions of s.

15  550.0951(3)(a), the tax on handle for live thoroughbred horse

16  performances shall be subject to the following:

17         1.  The tax on handle per performance for live

18  thoroughbred performances is 1.0 2.0 percent of handle for

19  performances conducted during the period beginning on January

20  3 and ending March 16; .20 percent of handle for performances

21  conducted during the period beginning March 17 and ending May

22  22; and 1.0 1.25 percent of handle for performances conducted

23  during the period beginning May 23 and ending January 2.

24         2.  If any thoroughbred permitholder conducts

25  performances during more than one time period or if

26  performances are conducted during more than one period at any

27  facility, the tax on handle per performance is double the sum

28  of the tax percentages for the periods in which performances

29  are being conducted, except:

30         a.  Pursuant to s. 550.01215, two permitholders, by

31  mutual written agreement, may agree to the operation by one of

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    Florida Senate - 1999                                   SB 762
    29-410-99




  1  them in the other permitholder's tax period for up to 3 days,

  2  if the 3 days are either the first 3 days or the last 3 days

  3  of the racing period in which the permitholders intend to

  4  operate.

  5         b.  If, on March 31 of any year, there is no

  6  permitholder holding a license for operating any one of the

  7  three race periods set forth in this section or if the

  8  permitholder who is licensed to operate in any period fails to

  9  operate for 10 consecutive days, a permitholder already

10  licensed to operate in another period may apply for and be

11  issued a license to operate the period in question, in

12  addition to the period already licensed.

13         c.  Two permitholders who operated in different periods

14  in the preceding fiscal year may, by mutual written agreement,

15  switch periods for the current racing season, even if it

16  results in either permitholder or the facility of a

17  permitholder being operated in two different periods.

18

19  However, any thoroughbred permitholder whose total handle on

20  live performances during the 1991-1992 state fiscal year was

21  not greater than $34 million is authorized to conduct live

22  performances at any time of the year and shall pay 0.5 percent

23  on live handle per performance.

24         3.  For the period beginning on April 1 and ending May

25  23 during the state fiscal year 1992-1993, any permitholder

26  which has operated less than 51 racing days in the last 18

27  months may operate said period and pay 1.25 percent tax on

28  live handle per performance.  In the event this provision

29  takes effect after April 1, 1993, it shall be construed to

30  apply retroactively from April 1, 1993, through May 23, 1993.

31

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    Florida Senate - 1999                                   SB 762
    29-410-99




  1         4.  In the event any licenses have been issued to any

  2  thoroughbred permitholders for racing dates prior to April 26,

  3  1993, then, notwithstanding the provisions of s. 550.525(2),

  4  amendments may be filed to the racing dates up to May 1, 1993.

  5         Section 3.  Effective July 1, 2001, paragraph (a) of

  6  subsection (2) of section 550.09515, Florida Statutes, as

  7  amended by section 4 of chapter 98-190, Laws of Florida, is

  8  amended to read:

  9         550.09515  Thoroughbred horse taxes; abandoned interest

10  in a permit for nonpayment of taxes.--

11         (2)(a)  Notwithstanding the provisions of s.

12  550.0951(3)(a), the tax on handle for live thoroughbred horse

13  performances shall be subject to the following:

14         1.  The tax on handle per performance for live

15  thoroughbred performances is 1 2.25 percent of handle for

16  performances conducted during the period beginning on January

17  3 and ending March 16; .70 percent of handle for performances

18  conducted during the period beginning March 17 and ending May

19  22; and 1 1.5 percent of handle for performances conducted

20  during the period beginning May 23 and ending January 2.

21         2.  However, any thoroughbred permitholder whose total

22  handle on live performances during the 1991-1992 state fiscal

23  year was not greater than $34 million is authorized to conduct

24  live performances at any time of the year and shall pay 0.5

25  percent on live handle per performance.

26         Section 4.  Except as otherwise provided in this act,

27  this act shall take effect July 1, 1999.

28

29            *****************************************

30                          SENATE SUMMARY

31    Reduces the tax on handle for thoroughbred permitholders
      to 1 percent.
                                  4