Senate Bill 1630
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
By Senator Geller
29-1221-00 See HB 945
1 A bill to be entitled
2 An act relating to pari-mutuel wagering;
3 amending s. 550.0951, F.S.; revising the tax on
4 handle for certain intertrack wagers; revising
5 the time period for the remittance of certain
6 fees and taxes; amending ss. 550.09511,
7 550.6305, F.S.; conforming cross-references;
8 amending s. 550.09515, F.S.; revising the tax
9 on handle for thoroughbred horserace
10 performances; creating s. 550.73, F.S.;
11 providing for the Breeders' Cup Meet;
12 authorizing pools; providing for conflicts,
13 taxes, credits, transmission of races, rules
14 and application; creating s. 550.74, F.S.;
15 prohibiting the levy of taxes on certain
16 programs, parking, or admissions; repealing s.
17 550.26352, F.S., relating to the Breeders' Cup
18 Meet; authorizing the Division of State Lands
19 of the Department of Environmental Protection
20 to enter into a contract to purchase a portion
21 of Hialeah Race Track; providing procedures;
22 providing a definition; providing an effective
23 date.
24
25 Be It Enacted by the Legislature of the State of Florida:
26
27 Section 1. Subsections (3) and (5) of section
28 550.0951, Florida Statutes, are amended to read:
29 550.0951 Payment of daily license fee and taxes.--
30 (3) TAX ON HANDLE.--Each permitholder shall pay a tax
31 on contributions to pari-mutuel pools, the aggregate of which
1
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 is hereinafter referred to as "handle," on races or games
2 conducted by the permitholder. The tax is imposed daily and is
3 based on the total contributions to all pari-mutuel pools
4 conducted during the daily performance. If a permitholder
5 conducts more than one performance daily, the tax is imposed
6 on each performance separately.
7 (a) The tax on handle for thoroughbred horse racing,
8 harness horse racing, and quarter horse racing is 3.3 percent
9 of the handle.
10 (b) The tax on handle for dogracing is 7.6 percent of
11 the handle and for jai alai is 7.1 percent of the handle.
12 (c)1. The tax on handle for an intertrack wager, as
13 that term is defined in s. 550.002(17), is 2.4 percent of the
14 handle if the host track is a horse track, provided however,
15 that the tax on handle for an intertrack wager, as that term
16 is defined in s. 550.002(17), is 0.20 percent of the handle if
17 both the host track and the guest track are thoroughbred
18 permitholders.
19 2.1. The tax on handle for intertrack wagering is 3.3
20 percent of the handle if the host track is a horse track, 7.6
21 percent if the host track is a dog track, and 7.1 percent if
22 the host track is a jai alai fronton. The tax on handle for
23 intertrack wagering on rebroadcasts of simulcast horseraces is
24 2.4 percent of the handle. The tax shall be deposited into
25 the General Revenue Fund.
26 3.2. Effective October 1, 1996, the tax on handle for
27 intertrack wagers accepted by any dog track located in an area
28 of the state in which there are only three permitholders, all
29 of which are greyhound permitholders, located in three
30 contiguous counties, from any greyhound permitholder also
31 located within such area or any dog track or jai alai fronton
2
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 located as specified in s. 550.615(6) or (8), on races or
2 games received from the same class of permitholder located
3 within the same market area is 6 percent if the host facility
4 is a greyhound permitholder and, if the host facility is a jai
5 alai permitholder, the rate shall be 6.1 percent except that
6 it shall be 2.3 percent on handle at such time as the total
7 tax on intertrack handle paid to the division by the
8 permitholder during the current state fiscal year exceeds the
9 total tax on intertrack handle paid to the division by the
10 permitholder during the 1992-1993 state fiscal year.
11 4.3. Any guest track that imposes a surcharge on each
12 winning ticket cashed pursuant to s. 550.6335 shall pay an
13 additional tax equal to 5 percent of the surcharge so imposed.
14 Any taxes so imposed shall be deposited into the General
15 Revenue Fund.
16 (5) PAYMENT AND DISPOSITION OF FEES AND
17 TAXES.--Payment for the admission tax, tax on handle, and the
18 breaks tax imposed by this section shall be paid to the
19 division. The division shall deposit these sums with the
20 Treasurer, one-half being credited to the Pari-mutuel Wagering
21 Trust Fund, hereby established, and one-half being credited to
22 the General Revenue Fund. The permitholder shall remit to the
23 division payment for the daily license fee, the admission tax,
24 the tax on handle, and the breaks tax. Such payments shall be
25 remitted by 3 p.m. Friday of each week for taxes and fees
26 imposed and collected for the preceding Sunday, Monday, and
27 Tuesday, and by 3 p.m. Wednesday of each week for taxes
28 imposed and collected for the preceding week ending on Sunday
29 Wednesday, Thursday, Friday, and Saturday. Permitholders shall
30 file a report under oath by the 5th day of each calendar month
31 for all taxes remitted during the preceding calendar month.
3
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 Such payments shall be accompanied by a report under oath
2 showing the total of all admissions, the pari-mutuel wagering
3 activities for the preceding calendar month, and such other
4 information as may be prescribed by the division.
5 Section 2. Paragraph (a) of subsection (3) of section
6 550.09511, Florida Statutes, is amended to read:
7 550.09511 Jai alai taxes; abandoned interest in a
8 permit for nonpayment of taxes.--
9 (3)(a) Notwithstanding the provisions of subsection
10 (2) and s. 550.0951(3)(c)2.1., any jai alai permitholder which
11 is restricted under Florida law from operating live
12 performances on a year-round basis is entitled to conduct
13 wagering on live performances at a tax rate of 3.85 percent of
14 live handle. Such permitholder is also entitled to conduct
15 intertrack wagering as a host permitholder on live jai alai
16 games at its fronton at a tax rate of 3.3 percent of handle at
17 such time as the total tax on intertrack handle paid to the
18 division by the permitholder during the current state fiscal
19 year exceeds the total tax on intertrack handle paid to the
20 division by the permitholder during the 1992-1993 state fiscal
21 year.
22 Section 3. Paragraph (a) of subsection (9) of section
23 550.6305, Florida Statutes, is amended to read:
24 550.6305 Intertrack wagering; guest track payments;
25 accounting rules.--
26 (9) A host track that has contracted with an
27 out-of-state horse track to broadcast live races conducted at
28 such out-of-state horse track pursuant to s. 550.3551(5) may
29 broadcast such out-of-state races to any guest track and
30 accept wagers thereon in the same manner as is provided in s.
31 550.3551.
4
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 (a) For purposes of this section, "net proceeds" means
2 the amount of takeout remaining after the payment of state
3 taxes, purses required pursuant to s. 550.0951(3)(c)2.1., the
4 cost to the permitholder required to be paid to the
5 out-of-state horse track, breeders' awards paid to the Florida
6 Thoroughbred Breeders' Association and the Florida
7 Standardbred Breeders and Owners Association, to be used as
8 set forth in s. 550.625(2)(a) and (b), and the deduction of
9 any amount retained pursuant to s. 550.615(11).
10 Section 4. Paragraph (a) of subsection (2) of section
11 550.09515, Florida Statutes, is amended to read:
12 550.09515 Thoroughbred horse taxes; abandoned interest
13 in a permit for nonpayment of taxes.--
14 (2)
15 (a) Notwithstanding the provisions of s.
16 550.0951(3)(a), the tax on handle for live thoroughbred
17 horserace horse performances shall be 0.20 percent subject to
18 the following:
19 1. The tax on handle per performance for live
20 thoroughbred performances is 2.0 percent of handle for
21 performances conducted during the period beginning on January
22 3 and ending March 16; .20 percent of handle for performances
23 conducted during the period beginning March 17 and ending May
24 22; and 1.25 percent of handle for performances conducted
25 during the period beginning May 23 and ending January 2.
26 1.2. If any thoroughbred permitholder conducts
27 performances during more than one time period or if
28 performances are conducted during more than one period at any
29 facility, the tax on handle per performance is double the sum
30 of the tax percentages for the periods in which performances
31 are being conducted, except:
5
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 a. Pursuant to s. 550.01215, two permitholders, by
2 mutual written agreement, may agree to the operation by one of
3 them in the other permitholder's tax period for up to 3 days,
4 if the 3 days are either the first 3 days or the last 3 days
5 of the racing period in which the permitholders intend to
6 operate.
7 b. If, on March 31 of any year, there is no
8 permitholder holding a license for operating any one of the
9 three race periods set forth in this section or if the
10 permitholder who is licensed to operate in any period fails to
11 operate for 10 consecutive days, a permitholder already
12 licensed to operate in another period may apply for and be
13 issued a license to operate the period in question, in
14 addition to the period already licensed.
15 c. Two permitholders who operated in different periods
16 in the preceding fiscal year may, by mutual written agreement,
17 switch periods for the current racing season, even if it
18 results in either permitholder or the facility of a
19 permitholder being operated in two different periods.
20
21 However, any thoroughbred permitholder whose total handle on
22 live performances during the 1991-1992 state fiscal year was
23 not greater than $34 million is authorized to conduct live
24 performances at any time of the year and shall pay 0.5 percent
25 on live handle per performance.
26 2.3. For the period beginning on April 1 and ending
27 May 23 during the state fiscal year 1992-1993, any
28 permitholder which has operated less than 51 racing days in
29 the last 18 months may operate said period and pay 1.25
30 percent tax on live handle per performance. In the event this
31 provision takes effect after April 1, 1993, it shall be
6
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 construed to apply retroactively from April 1, 1993, through
2 May 23, 1993.
3 3.4. In the event any licenses have been issued to any
4 thoroughbred permitholders for racing dates prior to April 26,
5 1993, then, notwithstanding the provisions of s. 550.525(2),
6 amendments may be filed to the racing dates up to May 1, 1993.
7 Section 5. Section 550.73, Florida Statutes, is
8 created to read:
9 550.73 Breeders' Cup Meet; pools authorized;
10 conflicts; taxes; credits; transmission of races; rules;
11 application.--
12 (1) Notwithstanding any provision of this chapter to
13 the contrary, there is created a special thoroughbred race
14 meet which shall be designated as the "Breeders' Cup Meet."
15 The Breeders' Cup Meet shall be conducted at the facility of
16 the Florida permitholder selected by Breeders' Cup Limited to
17 conduct the Breeders' Cup Meet. The Breeders' Cup Meet shall
18 consist of 3 days: the day on which the Breeders' Cup races
19 are conducted, the preceding day, and the subsequent day. Upon
20 the selection of the Florida permitholder as host for the
21 Breeders' Cup Meet and application by the selected
22 permitholder, the division shall issue a license to the
23 selected permitholder to operate the Breeders' Cup Meet.
24 Notwithstanding s. 550.09515(2)(a), the Breeders' Cup Meet may
25 be conducted on dates which the selected permitholder is not
26 otherwise authorized to conduct a race meet.
27 (2) The permitholder conducting the Breeders' Cup Meet
28 is specifically authorized to create pari-mutuel pools during
29 the Breeders' Cup Meet by accepting pari-mutuel wagers on the
30 thoroughbred horse races run during said meet.
31
7
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 (3) If the facility of the permitholder conducting the
2 Breeders' Cup Meet is located within 35 miles of any other
3 permitholders' facilities scheduled to host a thoroughbred
4 race meet on any of the 3 days of the Breeders' Cup Meet, then
5 operation on any of those 3 days by the other permitholders is
6 prohibited. As compensation for the loss of racing days caused
7 thereby, such operating permitholders shall receive a credit
8 against the taxes otherwise due and payable to the state under
9 ss. 550.0951 and 550.09515. This credit shall be in an amount
10 equal to the operating loss determined to have been suffered
11 by the operating permitholders as a result of not operating on
12 the prohibited racing days, but shall not exceed a total of
13 $950,000. The determination of the amount to be credited shall
14 be made by the division upon application by the operating
15 permitholder. The tax credits provided in this subsection
16 shall not be available unless an operating permitholder is
17 required to close a bona fide meet consisting in part of no
18 fewer than 10 scheduled performances in the 15 days
19 immediately preceding or 10 scheduled performances in the 15
20 days immediately following the Breeders' Cup Meet. Such tax
21 credit shall be in lieu of any other compensation or
22 consideration for the loss of racing days. There shall be no
23 replacement or makeup of any lost racing days.
24 (4) Notwithstanding any provision of ss. 550.0951 and
25 550.09515, the permitholder conducting the Breeders' Cup Meet
26 shall pay no taxes on the handle included within the
27 pari-mutuel pools of said permitholders during the Breeders'
28 Cup Meet.
29 (5) The permitholder conducting the Breeders' Cup Meet
30 shall receive a credit against the taxes otherwise due and
31 payable to the state under ss. 550.0951 and 550.09515
8
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 generated during said permitholder's next ensuing regular
2 thoroughbred race meet. This credit shall be in an amount not
3 to exceed $800,000 and shall be utilized by the permitholder
4 to pay the purses offered by the permitholder during the
5 Breeders' Cup Meet in excess of the purses which the
6 permitholder is otherwise required by law to pay. The amount
7 to be credited shall be determined by the division upon
8 application of the permitholder which is subject to audit by
9 the division.
10 (6) The permitholder conducting the Breeders' Cup Meet
11 shall receive a credit against the taxes otherwise due and
12 payable to the state under ss. 550.0951 and 550.09515
13 generated during said permitholder's next ensuing regular
14 thoroughbred race meet. This credit shall be in an amount not
15 to exceed $950,000 and shall be utilized by the permitholder
16 for such capital improvements and extraordinary expenses as
17 may be necessary for operation of the Breeders' Cup Meet. the
18 amount to be credited shall be determined by the division upon
19 application of the permitholder, which is subject to audit by
20 the division.
21 (7) The permitholder conducting the Breeders' Cup Meet
22 shall be exempt from the payment of purses and other payments
23 to horsemen on all on-track, intertrack, interstate, and
24 international wagers or rights fees or payments arising
25 therefrom for all races for which the purse is paid or
26 supplied by Breeders' Cup Limited. The permitholder conducting
27 the Breeders' Cup Meet shall not, however, be exempt from
28 breeders' awards payments for on-track and intertrack wagers
29 as provided in ss. 550.2625(3) and 550.625(2)(a) for races in
30 which the purse is paid or supplied by Breeders' Cup Limited.
31
9
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 (8)(a) Pursuant to s. 550.3551(2), the permitholder
2 conducting the Breeders' Cup Meet is authorized to transmit
3 broadcasts of the races conducted during the Breeders' Cup
4 Meet to locations outside of this state for wagering purposes.
5 The division may approve broadcasts to pari-mutuel
6 permitholders and other betting systems authorized under the
7 laws of any other state or country. Wagers accepted by any
8 out-of-state pari-mutuel permitholder or betting system on any
9 races broadcast under this section may be, but are not
10 required to be, commingled with the pari-mutuel pools of the
11 permitholder conducting the Breeders' Cup Meet. The
12 calculation of any payoff on national pari-mutuel pools with
13 commingled wagers may be performed by the permitholder's
14 totalisator contractor at a location outside of this state.
15 Pool amounts from wagers placed at pari-mutuel facilities or
16 other betting systems in foreign countries before being
17 commingled with the pari-mutuel pool of the Florida
18 permitholder conducting the Breeders' Cup Meet shall be
19 calculated by the totalisator contractor and transferred to
20 the commingled pool in United States currency in cycles
21 customarily used by the permitholder. Pool amounts from wagers
22 placed at any foreign pari-mutuel facility or other betting
23 system shall not be commingled with a Florida pool until a
24 determination is made by the division that the technology
25 utilized by the totalisator contractor is adequate to assure
26 commingled pools will result in the calculation of accurate
27 payoffs to Florida bettors. Any totalisator contractor at a
28 location outside of this state shall comply with the
29 provisions of s. 550.495 relating to totalisator licensing.
30 (b) The permitholder conducting the Breeders' Cup Meet
31 is authorized to transmit broadcasts of the races conducted
10
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 during the Breeders' Cup Meet to other pari-mutuel facilities
2 located in this state for wagering purposes; however, the
3 permitholder conducting the Breeders' Cup Meet shall not be
4 required to transmit broadcasts to any pari-mutuel facility
5 located within 25 miles of the facility at which the Breeders'
6 Cup Meet is conducted. Wagers accepted by all pari-mutuel
7 facilities located in the state on any races broadcast under
8 this section shall be included in the pari-mutuel pools of the
9 permitholder conducting the Breeders' Cup Meet.
10 (9) The exemption from the tax credits provided in
11 subsections (5) and (6) shall not be granted and shall not be
12 claimed by the permitholder until an audit is completed by the
13 division. The division is required to complete the audit
14 within 30 days after receipt of the necessary documentation
15 from the permitholder to verify the permitholder's claim for
16 tax credits. If the documentation submitted by the
17 permitholder is incomplete or is insufficient to document the
18 permitholder's claim for tax credits, the division may request
19 such additional documentation as is necessary to complete the
20 audit. Upon receipt of the division's written request for
21 additional documentation, the 30-day time limitation will
22 commence anew.
23 (10) The division is authorized to adopt such rules as
24 are necessary to facilitate the conduct of the Breeders' Cup
25 Meet as authorized in this section. Included within this grant
26 of authority shall be the adoption or waiver of rules
27 regarding the overall conduct of racing during the Breeders'
28 Cup Meet in such a manner so as to ensure the integrity of the
29 races, licensing for all participants, special stabling and
30 training requirements for foreign horses, commingling of
31
11
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 pari-mutuel pools, and audit requirements for tax credits and
2 other benefits.
3 (11) Any dispute between the division and any
4 permitholder regarding the tax credits authorized under
5 subsection (3), subsection (5), or subsection (6) shall be
6 determined by a hearing officer of the Division of
7 Administrative Hearings under the provisions of s. 120.57(1).
8 (12) The provisions of this section shall prevail over
9 any conflicting provisions of this chapter.
10 Section 6. Section 550.74, Florida Statutes, is
11 created to read:
12 550.74 Admissions and sales tax.--No tax shall be
13 levied on programs, parking, or admissions under this chapter
14 or chapter 212 for pari-mutuel events licensed and conducted
15 pursuant to this chapter.
16 Section 7. Section 550.26352, Florida Statutes, is
17 repealed.
18 Section 8. (1) The division, on behalf of the state,
19 is authorized to enter into a contract to purchase that
20 portion of Hialeah Park Race Track located in the City of
21 Hialeah, which is currently owned by Hialeah, Inc., for a sum
22 not to exceed $30,650,000 for the property and a fixed sum of
23 $2 million for the thoroughbred racing permit, as was
24 recommended by that certain Final Report of Findings and
25 Recommendations prepared in response to the Request for
26 Proposal No. 973-740-07-99-01 issued by the Department of
27 State as required by section 550.72, Florida Statutes.
28 (2) In order to determine an appropriate purchase
29 price, the division shall review the appraisal prepared by
30 Quinlivan Appraisal, P.A., dated November 17, 1998, of Hialeah
31 Park Race Track.
12
CODING: Words stricken are deletions; words underlined are additions.
Florida Senate - 2000 SB 1630
29-1221-00 See HB 945
1 (3) The division is authorized to tender an offer
2 equal to the fair market value of the property which
3 determination shall utilize the appraisal performed by
4 Quinlivan Appraisal, P.A., and any supplemental appraisal
5 prepared at the request of the division.
6 (4) The division shall negotiate a purchase price and
7 tender an offer and contract to Hialeah, Inc., for the
8 purchase of the property and the thoroughbred racing permit no
9 later than September 30, 2000. Hialeah, Inc., shall have until
10 February 1, 2001, to accept such offer and execute said
11 contract, or such offer and contract shall be void.
12 (5) Any contract executed between the division and
13 Hialeah, Inc., shall be subject to the availability of
14 appropriated funds.
15 (6) The term "division," for the purposes of this
16 section, means the Department of Environmental Protection,
17 Division of State Lands.
18 Section 9. This act shall take effect upon becoming a
19 law.
20
21 *****************************************
22 LEGISLATIVE SUMMARY
23
Provides that the tax on handle for an intertrack wager
24 is 2.4 percent of the handle if the host track is a horse
track and is 2.0 percent of the handle if both the host
25 track and the guest track are thoroughbred permitholders.
Provides that the payment for admission tax, tax on
26 handle, and the breaks tax shall be remitted by 3 p.m.
Wednesday of each week for taxes imposed and collected
27 for the preceding week ending on Sunday. Provides that
the tax on handle for live thoroughbred horserace
28 performances shall be 0.20 percent. Provides for the
Breeders' Cup Meet. (See bill for details.)
29
30
31
13