H. B. 4523
(By Delegates Michael, Doyle,
G. White and Foster)
[Introduced
February 18, 2004
; referred to the
Committee on the Judiciary then Finance.]
A BILL to amend and reenact §19-23-10 of the code of West Virginia,
1931, as amended, relating to allowing certain racing
associations or licensees qualifying for an alternate tax,
when conducting more than one racing performance a day, to
increase the number of races each performance may have to
thirteen, before it must pay both the daily license tax and
the alternative tax.
Be it enacted by the Legislature of West Virginia:
That §19-23-10 of the code of West Virginia, 1931, 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 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 thirteen
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 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 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 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 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 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 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.
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 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.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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