Bill Text: IN SB0403 | 2011 | Regular Session | Introduced
Bill Title: Taxation of racetrack casinos.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-01-11 - First reading: referred to Committee on Tax and Fiscal Policy [SB0403 Detail]
Download: Indiana-2011-SB0403-Introduced.html
Citations Affected: IC 4-33-2-17.5; IC 4-35; IC 6-8.1-1-1.
Synopsis: Taxation of racetrack casinos. Renames the amounts paid
to support horse racing from slot machine revenues as racing support
fees. Requires the department of state revenue to collect the racing
support fee, the county slot machine wagering fee, and the
supplemental fee. Establishes the Indiana horse racing support fund for
the deposit of the racing support fee. Requires that the fees must be
remitted on a daily basis. Provides that the slot machine wagering tax
imposed on racetrack casinos is determined using taxable receipts that
are calculated by excluding some of the racing support fees, county slot
machine wagering fees, and supplemental fees remitted by the
racetrack casinos. Allows all of the remitted fees to be excluded in
2013. Repeals an obsolete definition. Makes an appropriation.
Effective: July 1, 2011.
January 11, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
of the money shall be distributed as provided in this section. A licensee
With respect to slot machine wagering occurring after June 30,
2011, the amount required by this subsection must be remitted to
the department as a racing support fee. A licensee shall remit the
amount of the fee to the department before the close of the business
day following the day the wagers are made.
(b) The department shall pay the first two hundred fifty thousand
dollars ($250,000) distributed received from each licensee under this
section in a state fiscal year to the Indiana horse racing commission for
deposit in the gaming integrity fund established by IC 4-35-8.7-3.
(c) After this money has been distributed the amounts required by
subsection (b) have been paid to the Indiana horse racing
commission, a licensee shall distribute the department shall deposit
the remaining money devoted to horse racing purses and to horsemen's
associations under this subsection as follows: racing support fees
remitted by the licensees into the Indiana horse racing support
fund established by section 12.2 of this chapter. Except as provided
in subsection (h), money in the fund must be used as follows:
(1) Five-tenths percent (0.5%) shall be transferred to horsemen's
associations for equine promotion or welfare according to the
ratios specified in subsection (e). (f).
(2) Two and five-tenths percent (2.5%) shall be transferred to
horsemen's associations for backside benevolence according to
the ratios specified in subsection (e). (f).
(3) Ninety-seven percent (97%) shall be distributed to promote
horses and horse racing as provided in subsection (d). (e).
(c) (d) A horsemen's association shall expend the amounts
distributed to the horsemen's association under subsection (b)(1) (c)(1)
through (b)(2) (c)(2) for a purpose promoting the equine industry or
equine welfare or for a benevolent purpose that the horsemen's
association determines is in the best interests of horse racing in Indiana
for the breed represented by the horsemen's association. Expenditures
under this subsection are subject to the regulatory requirements of
subsection (f). (g).
(d) A licensee shall distribute (e) The Indiana horse racing
commission shall ensure that the amounts described in subsection
(b)(3) (c)(3) are allocated as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as follows:
(A) Sixty percent (60%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the horsemen's
association representing thoroughbred owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen's association representing thoroughbred owners and breeders.
(B) Forty percent (40%) to the breed development fund established for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes as follows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-six and five-tenths percent (96.5%) for standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the horsemen's association representing standardbred owners and trainers.
(B) Fifty percent (50%) to the breed development fund established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association representing quarter horse owners and trainers.
(B) Thirty percent (30%) to the breed development fund established for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatory requirements of subsection
(1) Forty-six percent (46%) to the horsemen's association representing thoroughbred owners and trainers.
(2) Forty-six percent (46%) to the horsemen's association representing standardbred owners and trainers.
(3) Eight percent (8%) to the horsemen's association representing quarter horse owners and trainers.
(1) The horsemen's association must annually file a report with the Indiana horse racing commission concerning the use of the money by the horsemen's association. The report must include information as required by the commission.
(2) The horsemen's association must register with the Indiana horse racing commission.
(1) fifteen percent (15%) of the licensee's adjusted gross receipts for the state fiscal year; or
(2) the amount dedicated to the purposes described in subsection
Department of Labor Consumer Price Index during the state
fiscal year preceding the state fiscal year in which an increase is
established.
If fifteen percent (15%) of a licensee's adjusted gross receipts for the
state fiscal year exceeds the amount specified in subdivision (2), the
licensee Indiana horse racing commission shall transfer the amount
of the excess to the commission department for deposit in the state
general fund. The licensee Indiana horse racing commission shall
adjust the transfers required under this section amounts distributed
from the Indiana horse racing support fund in the final month of the
state fiscal year to comply with the requirements of this subsection.
The budget agency shall assist the Indiana horse racing
commission in making the calculations required by this subsection.
(b) If the department requires racing support fees to be remitted through electronic funds transfer, the department may allow the licensee to file a monthly report to reconcile the amounts remitted to the department.
(c) The payment of the racing support fee must be documented on a form prescribed by the department.
(b) The fund consists of the money deposited in the fund under section 12 of this chapter.
(c) Except as provided in section 12(h) of this chapter, the Indiana horse racing commission shall distribute money in the fund to the:
(1) horsemen's associations; and
(2) licensees;
in the manner and amounts required by section 12 of this chapter.
(d) Money in the fund is continuously appropriated to the Indiana horse racing commission for the purposes of section 12 of this chapter. The Indiana horse racing commission may not use money in the fund for any administrative purpose or other purpose
of the Indiana horse racing commission. Money in the fund must
be used solely for the purposes described in section 12 of this
chapter.
(1) Before June 1, 2011, with respect to races conducted after June 30, 2011, and before January 1, 2012.
(2) At the time the permit holder applies for a renewal of the permit holder's recognized meeting permit, with respect to each recognized meeting beginning after December 31, 2011.
(1) issue a warning to the licensee;
(2) impose a civil penalty that may not exceed one million dollars ($1,000,000); or
(3) suspend a meeting permit issued under IC 4-31-5 to conduct a pari-mutuel wagering horse racing meeting in Indiana.
(b) A civil penalty collected under this section must be deposited in the state general fund.
(1) Twenty-five percent (25%) of the first one hundred million dollars ($100,000,000) of
(2) Thirty percent (30%) of the
(3) Thirty-five percent (35%) of the
(b) A licensee shall remit the tax imposed by this section to the department before the close of the business day following the day the wagers are made. With respect to slot machine wagers made after June 30, 2011, the amount of a licensee's taxable receipts for a particular day is equal to the result determined under STEP TWO of the following formula:
STEP ONE: Determine the amount of the adjusted gross receipts received by the licensee during that day.
STEP TWO: Determine the result of:
(A) the STEP ONE amount; minus
(B) the licensee's qualified daily deduction amount determined for that day under section 5(b) of this chapter.
(c) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(d) If the department requires taxes to be remitted under this chapter through electronic funds transfer, the department may allow the licensee to file a monthly report to reconcile the amounts remitted to the department.
(e) The payment of the tax under this section must be on a form prescribed by the department.
(b) For July 1, 2011, and each day thereafter, a licensee's qualified daily deduction amount for purposes of calculating the licensee's taxable receipts for that day is equal to the result determined under STEP TWO of the following formula:
STEP ONE: Determine the total amount that the licensee remitted to the department for that day under IC 4-35-7-12, IC 4-35-8.5, and IC 4-35-8.9.
STEP TWO: Determine the result of:
(A) the STEP ONE amount; multiplied by
(B) the appropriate percentage determined as follows:
(i) Thirty-three percent (33%) for a day occurring in the state fiscal year beginning on July 1, 2011.
(ii) Sixty-seven percent (67%) for a day occurring in the state fiscal year beginning on July 1, 2012.
(iii) One hundred percent (100%) for a day occurring in a state fiscal year beginning after June 30, 2013.
(b) The
(c) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(d) If the department requires fees to be remitted under this section through electronic funds transfer, the department may allow the licensee to file a monthly report to reconcile the amounts remitted to the department.
(e) The payment of the fees under this section must be documented on a form prescribed by the department.
(b) The department may require payment under this section to be made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(c) If the department requires fees to be remitted under this
section through electronic funds transfer, the department may
allow the licensee to file a monthly report to reconcile the amounts
remitted to the department.
(d) The payment of the fees under this section must be
documented on a form prescribed by the department.
(b) (e) The commission department shall deposit the supplemental
fees into a separate account within the state general fund.
