Senate Bill No. 225
(By Senator Bailey)
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[Introduced March 3, 1997; referred to the Committee
on Finance.]
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A BILL to amend and reenact section ten, article twenty-three,
chapter nineteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to an increase
in the amount withheld from the pari-mutual wagering tax and
given to the commissioner for a fund to promote better
breeding and racing of greyhounds; requiring a person to be
a two-year resident of this state to be eligible to receive
an award or purse from the fund; giving priority to compete
to West Virginia greyhounds; and providing for the transfer
of dogs when they are no longer competitive.
Be it enacted by the Legislature of West Virginia:
That section ten, article twenty-three, chapter nineteen of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 23. HORSE AND DOG RACING.
PART VII. TAXATION OF HORSE AND DOG RACING AND PARI-MUTUEL
WAGERING; DISPOSITION OF REVENUES.
§19-23-10. Daily license tax; pari-mutuel pools tax; how taxes
paid; alternate tax; credits.
(a) Any racing association conducting thoroughbred racing at
any horse racetrack in this state shall pay each day upon which
horse races are run a daily license tax of two hundred fifty
dollars. Any racing association conducting harness racing at any
horse racetrack in this state shall pay each day upon which horse
races are run a daily license tax of one hundred fifty dollars.
Any racing association conducting dog races shall pay each day
upon which dog races are run a daily license tax of one hundred
fifty dollars. In the event thoroughbred racing, harness racing,
dog racing, or any combination of the foregoing are conducted on
the same day at the same racetrack by the same racing
association, only one daily license tax in the amount of two
hundred fifty dollars shall be paid for that day. Any daily
license tax shall does not apply to any local, county or state
fair, horse show or agricultural or livestock exposition at which
horse racing is conducted for not more than six days.
(b) Any racing association licensed by the racing commission
to conduct thoroughbred racing and permitting and conducting pari-mutuel wagering under the provisions of this article shall,
in addition to the daily license tax set forth in subsection (a)
of this section, pay to the racing commission, from the
commission deducted each day by the licensee from the pari-mutuel
pools on thoroughbred racing a tax calculated on the total daily
contribution of all pari-mutuel pools conducted or made at any
and every thoroughbred race meeting of the licensee licensed
under the provisions of this article. The tax, on the pari- mutuel pools conducted or made each day during the months of
January, February, March, October, November and December, shall
from the effective date of this section and for fiscal year one
thousand nine hundred eighty-five be calculated at two and six- tenths percent; for fiscal year one thousand nine hundred eighty- six, be calculated at two and three-tenths percent; for fiscal
year one thousand nine hundred eighty-seven, be calculated at two
percent of the pool; for fiscal year one thousand nine hundred
eighty-eight, be calculated at one and one-half percent; for
fiscal year one thousand nine hundred eighty-nine, be calculated
at one percent of the pool; for fiscal year one thousand nine
hundred ninety, seven tenths of one percent, and for fiscal year
one thousand nine hundred ninety-one and each fiscal year
thereafter be calculated at four tenths of one percent of the
pool; and, on the pari-mutuel pools conducted or made each day during all other months, shall from the effective date of this
section and for fiscal year one thousand nine hundred eighty- five, be calculated at three and six-tenths percent; for fiscal
year one thousand nine hundred eighty-six, be calculated at
three and three-tenths percent; for fiscal year one thousand
nine hundred eighty-seven, be calculated at three percent of the
pool; for fiscal year one thousand nine hundred eighty-eight, be
calculated at two and one-half percent; for fiscal year one
thousand nine hundred eighty-nine, be calculated at two percent
of the pool; for fiscal year one thousand nine hundred ninety, be
calculated at one and seven-tenths percent of the pool; and for
fiscal year one thousand nine hundred ninety-one and each fiscal
year thereafter, be calculated at one and four-tenths percent of
the pool: Provided, That out of the amount realized from the
three tenths of one percent decrease in the tax effective for
fiscal year one thousand nine hundred ninety-one and thereafter,
which decrease correspondingly increases the amount of commission
retained by the licensee, the licensee shall annually expend or
dedicate (i) one half of the realized amount for capital
improvements in its barn area at the track, subject to the racing
commission's prior approval of the plans for the improvements,
and (ii) the remaining one half of the realized amount for
capital improvements as the licensee may determine appropriate at the track. The term "capital improvement" shall be as defined by
the Internal Revenue Code: Provided, however, That any racing
association operating a horse racetrack in this state having an
average daily pari-mutuel pool on horse racing of two hundred
eighty thousand dollars or less per day for the race meetings of
the preceding calendar year shall, in lieu of payment of the
pari-mutuel pool tax, calculated as in this subsection, be
permitted to conduct pari-mutuel wagering at the horse racetrack
on the basis of a daily pari-mutuel pool tax fixed as follows:
On the daily pari-mutuel pool not exceeding three hundred
thousand dollars the daily pari-mutuel pool tax shall be one
thousand dollars plus the otherwise applicable percentage rate
imposed by this subsection of the daily pari-mutuel pool, if any,
in excess of three hundred thousand dollars: Provided further,
That upon the effective date of the reduction of the daily
pari-mutuel pool tax to one thousand dollars from the former two
thousand dollars, the association or licensee shall daily deposit
five hundred dollars into the special fund for regular purses
established by subdivision (1), subsection (b), section nine of
this article: And provided further, That if an association or
licensee qualifying for the foregoing alternate tax conducts more
than one racing performance, each consisting of up to ten races
in a calendar day, the association or licensee shall pay both the daily license tax imposed in subsection (a) of this section and
the alternate tax in this subsection for each performance: And
provided further, That a licensee qualifying for the foregoing
alternate tax is excluded from participation in the fund
established by section thirteen-b of this article: And provided
further, That this exclusion shall does not apply to any
thoroughbred racetrack at which the licensee has participated in
the West Virginia thoroughbred development fund for more than
four consecutive years prior to the thirty-first day of December,
one thousand nine hundred ninety-two.
(c) Any racing association licensed by the racing commission
to conduct harness racing and permitting and conducting pari- mutuel wagering under the provisions of this article shall, in
addition to the daily license tax required under subsection (a)
of this section, pay to the racing commission, from the
commission deducted each day by the licensee from the pari-mutuel
pools on harness racing, as a tax, three percent of the first one
hundred thousand dollars wagered, or any part thereof; four
percent of the next one hundred fifty thousand dollars; and five
and three-fourths percent of all over that amount wagered each
day in all pari-mutuel pools conducted or made at any and every
harness race meeting of the licensee licensed under the
provisions of this article.
(d) Any racing association licensed by the racing commission
to conduct dog racing and permitting and conducting pari-mutuel
wagering under the provisions of this article shall, in addition
to the daily license tax required under subsection (a) of this
section, pay to the racing commission, from the commission
deducted each day by the licensee from the all pari-mutuel pools,
on dog racing as a tax, four percent of the first fifty thousand
dollars or any part thereof of the pari-mutuel pools, five
percent of the next fifty thousand dollars of the pari-mutuel
pools, six percent of the next one hundred thousand dollars of
the pari-mutuel pools, seven percent of the next one hundred
fifty thousand dollars of the pari-mutuel pools, and eight
percent of all over three hundred fifty thousand dollars wagered
each day: Provided, That the licensee shall deduct daily from
the pari-mutuel tax an amount equal to one tenth of one percent
of the daily pari-mutuel pools in dog racing in fiscal year one
thousand nine hundred ninety; fifteen hundredths of one percent
in fiscal year one thousand nine hundred ninety-one; two tenths
of one percent in fiscal year one thousand nine hundred ninety- two; one quarter of one percent in fiscal year one thousand nine
hundred ninety-three; and three tenths of one percent in fiscal
year one thousand nine hundred ninety-four, ninety-five and
ninety-six; and five tenths of one percent in fiscal year one thousand nine hundred ninety-seven and every fiscal year
thereafter. The amounts deducted shall be paid to the racing
commission to be deposited by the racing commission in a banking
institution of its choice in a special account to be known as
"West Virginia Racing Commission-Special Account-West Virginia
Greyhound Breeding Development Fund". The purpose of the fund is
to promote better breeding and racing of greyhounds in the state
through awards and purses to state resident owners of accredited
West Virginia whelped greyhounds. In order to be eligible to
receive an award or purse through the fund, the owner of the
accredited West Virginia whelped greyhound must be a two-year
resident of this state. The moneys shall be expended by the
racing commission for purses for stake races, supplemental purse
awards, administration, promotion and educational programs
involving West Virginia whelped dogs, owned by residents of this
state under rules and regulations promulgated by the racing
commission. The racing commission shall pay out of the greyhound
breeding development fund to each of the licensed dog racing
tracks the sum of seventy-five thousand dollars for the fiscal
year ending the thirtieth day of June, one thousand nine hundred
ninety-four. The licensee shall deposit the sum into the special
fund for regular purses established under the provisions of
section nine of this article. The funds shall be expended solely for the purpose of supplementing regular purses under rules and
regulations promulgated proposed, subject to legislative
approval, by the racing commission.
Supplemental purse awards will be distributed as follows:
Supplemental purses shall be paid directly to the owner of an
accredited greyhound. or, if the greyhound is leased, the owner
may choose to designate a percentage of the purse earned directly
to the lessor as agreed to via a written purse distribution form
on file with the racing commission Any hidden ownership, leases
or conditional racing arrangements with kennels that require
further attachments of awards or purses through the fund is
strictly prohibited and any violation will result in loss of
racing privileges and is subject to provisions in section twenty-
six of this article.
The owner of accredited West Virginia whelped greyhounds
that earn a purse at any West Virginia meet will receive a bonus
award calculated at the end of each month as a percentage of the
fund dedicated to the owners as purse supplements, which shall be
a minimum of fifty percent of the total moneys deposited into the
West Virginia greyhound breeding development fund monthly.
The total amount of the fund available for the owners'
awards shall be distributed according to the ratio of purses
earned by an accredited greyhound to the total amount earned in races by all accredited West Virginia whelped greyhounds for that
month as a percentage of the funds dedicated to the owners' purse
supplements.
The owner of an accredited West Virginia whelped greyhound
shall file a purse distribution form with the racing commission
for a percentage of his or her dog's earnings. to be paid
directly to the lessor of the greyhound. Distribution shall be
made on the fifteenth day of each month for the preceding month's
achievements.
In no event shall purses earned at a meet held at a track
which did not make contributions to the West Virginia greyhound
breeder's development fund out of the daily pool on the day the
meet was held qualify or count toward eligibility for
supplemental purse awards.
Any balance in the purse supplement funds after all
distributions have been made for the year revert to the general
account of the fund for future distribution. in the following
year
In an effort to further promote the breeding of quality West
Virginia whelped greyhounds, a bonus purse supplement shall be
established in the amount of fifty thousand dollars per annum, to
be paid in equal quarterly installments of twelve thousand five
hundred dollars per quarter using the same method to calculate and distribute these funds as the regular supplemental purse
awards. This bonus purse supplement is for three years only,
commencing on the first day of July, one thousand nine hundred
ninety-three, and ending the thirtieth day of June, one thousand
nine hundred ninety-six. This money would come from the current
existing balance in the greyhound development fund.
Each pari-mutuel greyhound track shall provide stakes races
for accredited West Virginia whelped greyhounds: Provided, That
each pari-mutuel track shall have one juvenile and one open stake
race annually. The racing commission shall oversee and approve
racing schedules and purse amounts.
Ten percent of the deposits into the greyhound breeding
development fund beginning the first day of July, one thousand
nine hundred ninety-three and continuing each year thereafter,
shall be withheld by the racing commission and placed in a
special revenue account hereby created in the state treasury
called the "administration, promotion and educational account".
The racing commission is authorized to expend the moneys
deposited in the administration, promotion and educational
account at such times and in such amounts as the commission
determines to be necessary for purposes of administering and
promoting the greyhound development program: Provided, That
beginning with fiscal year one thousand nine hundred ninety-five and in each fiscal year thereafter in which the commission
anticipates spending any money from the account, the commission
shall submit to the executive department during the budget
preparation period prior to the Legislature convening before that
fiscal year for inclusion in the executive budget document and
budget bill, the recommended expenditures, as well as requests of
appropriations for the purpose of administration, promotion and
education. The commission shall make an annual report to the
Legislature on the status of the administration, promotion and
education account, including the previous year's expenditures and
projected expenditures for the next year.
The racing commission, for the fiscal year one thousand nine
hundred ninety-four only, may expend up to thirty-five thousand
dollars from the West Virginia greyhound breeding development
fund to accomplish the purposes of this section without strictly
following the requirements in the previous paragraph.
(e) All daily license and pari-mutuel pools tax payments
required under the provisions of this section shall be made to
the racing commission or its agent after the last race of each
day of each horse or dog race meeting, and the pari-mutuel pools
tax payments shall be made from all contributions to all pari- mutuel pools to each and every race of the day.
(f) Every association or licensee subject to the provisions of this article, including the changed provisions of sections
nine and ten of this article, shall annually submit to the racing
commission and the Legislature financial statements, including a
balance sheet, income statement, statement of change in financial
position and an audit of any electronic data system used for
pari-mutuel tickets and betting, prepared in accordance with
generally accepted auditing standards, as certified by an
experienced public accountant or a certified public accountant.
(g) Any accredited West Virginia whelped greyhound shall
have the priority right to compete at any dog track in this state
ifprovided they are duly qualified to be competitive. The racing
commission shall ensure the even distribution of all available
accredited dogs among the kennels up to ten percent per dog owner
of the total pool of active competitive West Virginia whelped
greyhounds and the equitable and just treatment of accredited
dogs and owners during qualifying rounds of racing, competition
and racing for purses.
(h) All dogs shall be returned to their respective owners or
moved to another race track at that owner's expense when they are
no longer competitive at each West Virginia racing facility.
Each dogs' movement shall be supported by sworn affidavit that is
reviewed by the racing secretary, license clerk and state
veterinarian. Failure to comply shall result in loss of racing privileges. A statement regarding the above must be placed on
all state racing license applications and on all racing leases.
NOTE: The purpose of this bill is to increase the amount
contributed to the fund for promoting better breeding and racing
of greyhounds, requiring a person to be a two-year resident in
order to receive money from this fund, giving priority to compete
to West Virginia greyhounds, and providing for the transfer of
greyhounds which are no longer competitive.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.