Bill Text: IN SB0607 | 2013 | Regular Session | Introduced
Bill Title: Taxation of racetrack casinos.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2013-01-17 - First reading: referred to Committee on Public Policy [SB0607 Detail]
Download: Indiana-2013-SB0607-Introduced.html
Citations Affected: IC 4-31-11-15; IC 4-33; IC 4-35; IC 15-13-3-12.
Synopsis: Taxation of racetrack casinos. Reduces the nominal
percentage of racetrack casino slot machine revenues that must be used
to support the horse racing industry from 15% to 12% and specifies
that the amount is a racing support fee. Recodifies statutes governing
the use of the fee. Establishes the Indiana horse racing support fund
(IHRSF) for the deposit of the racing support fee. Requires that the fees
must be remitted on a daily basis. Subtracts the racing support fees and
county slot machine wagering fees from a licensee's adjusted gross
receipts for purposes of the slot machine wagering tax. Recodifies
amounts formerly subtracted from the 15% of revenue otherwise
payable to support horse racing as an addition to a licensee's annual
license renewal fee, a tobacco cessation support fee, and an increased
gaming integrity fee. Specifies that the annual license renewal fee,
tobacco cessation support fee, gaming integrity fee, and problem
gambling fee may not be subtracted from a licensee's adjusted gross
receipts. Repeals an obsolete definition, obsolete provisions concerning
the riverboat subsidy for horse racing that predated the slot machine
wagering at the racetracks, the statute requiring a permit holder to use
part of the permit holder's slot machine revenue to support the horse
racing industry, and the supplemental fee. Appropriates money in the
IHRSF to the Indiana horse racing commission.
Effective: January 1, 2013 (retroactive); July 1, 2013.
January 17, 2013, read first time and referred to Committee on Public 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.
(1) the operating costs of the development programs; and
(2) other costs of administering this chapter;
from one (1) or more of the development funds. However, the amount used for each state fiscal year from these development funds to pay these costs may not exceed two percent (2%) of the amount distributed to those funds during the immediately preceding state fiscal year under
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 6. (a) The department shall place in the state
general fund the tax revenue collected under this chapter.
(b) Except as provided by subsections (c) and (d) and IC 6-3.1-20-7,
the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person
embarking on a gambling excursion during the quarter or
admitted to a riverboat that has implemented flexible scheduling
under IC 4-33-6-21 during the quarter shall be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is located in a county having a population of more than
one hundred eleven thousand (111,000) but less than one
hundred fifteen thousand (115,000); or
(ii) is contiguous to the Ohio River and is the largest city in
the county; and
(B) the county in which the riverboat is docked, if the
riverboat is not docked in a city described in clause (A).
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked. In the
case of a county described in subdivision (1)(B), this one dollar
($1) is in addition to the one dollar ($1) received under
subdivision (1)(B).
(3) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or
promotion fund for the county in which the riverboat is docked.
(4) Except as provided in subsection (k), fifteen cents ($0.15) of
the admissions tax collected by the licensed owner for each
person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the state fair commission, for use in any activity
that the commission is authorized to carry out under IC 15-13-3.
(5) Except as provided in subsection (k), ten cents ($0.10) of the admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the division of mental health and addiction. The division shall allocate at least twenty-five percent (25%) of the funds derived from the admissions tax to the prevention and treatment of compulsive gambling.
(6)
(c) With respect to tax revenue collected from a riverboat located in a historic hotel district, the treasurer of state shall quarterly pay the following:
(1) With respect to admissions taxes collected for a person admitted to the riverboat before July 1, 2010, the following amounts:
(A) Twenty-two percent (22%) of the admissions tax collected during the quarter shall be paid to the county treasurer of the county in which the riverboat is located. The county treasurer shall distribute the money received under this clause as follows:
(i) Twenty-two and seventy-five hundredths percent (22.75%) shall be quarterly distributed to the county treasurer of a county having a population of more than forty thousand (40,000) but less than forty-two thousand (42,000)
for appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county
fiscal body for the receiving county shall provide for the
distribution of the money received under this item to one (1)
or more taxing units (as defined in IC 6-1.1-1-21) in the
county under a formula established by the county fiscal body
after receiving a recommendation from the county executive.
(ii) Twenty-two and seventy-five hundredths percent
(22.75%) shall be quarterly distributed to the county
treasurer of a county having a population of more than ten
thousand seven hundred (10,700) but less than twelve
thousand (12,000) for appropriation by the county fiscal
body. The county fiscal body for the receiving county shall
provide for the distribution of the money received under this
item to one (1) or more taxing units (as defined in
IC 6-1.1-1-21) in the county under a formula established by
the county fiscal body after receiving a recommendation
from the county executive.
(iii) Fifty-four and five-tenths percent (54.5%) shall be
retained by the county where the riverboat is located for
appropriation by the county fiscal body after receiving a
recommendation from the county executive.
(B) Five percent (5%) of the admissions tax collected during
the quarter shall be paid to a town having a population of more
than two thousand (2,000) but less than three thousand five
hundred (3,500) located in a county having a population of
more than nineteen thousand five hundred (19,500) but less
than twenty thousand (20,000). At least twenty percent (20%)
of the taxes received by a town under this clause must be
transferred to the school corporation in which the town is
located.
(C) Five percent (5%) of the admissions tax collected during
the quarter shall be paid to a town having a population of more
than three thousand five hundred (3,500) located in a county
having a population of more than nineteen thousand five
hundred (19,500) but less than twenty thousand (20,000). At
least twenty percent (20%) of the taxes received by a town
under this clause must be transferred to the school corporation
in which the town is located.
(D) Twenty percent (20%) of the admissions tax collected
during the quarter shall be paid in equal amounts to each town
that:
(i) is located in the county in which the riverboat is located; and
(ii) contains a historic hotel.
At least twenty percent (20%) of the taxes received by a town under this clause must be transferred to the school corporation in which the town is located.
(E) Ten percent (10%) of the admissions tax collected during the quarter shall be paid to the Orange County development commission established under IC 36-7-11.5. At least one-third (1/3) of the taxes paid to the Orange County development commission under this clause must be transferred to the Orange County convention and visitors bureau.
(F) Thirteen percent (13%) of the admissions tax collected during the quarter shall be paid to the West Baden Springs historic hotel preservation and maintenance fund established by IC 36-7-11.5-11(b).
(G) Twenty-five percent (25%) of the admissions tax collected during the quarter shall be paid to the Indiana economic development corporation to be used by the corporation for the development and implementation of a regional economic development strategy to assist the residents of the county in which the riverboat is located and residents of contiguous counties in improving their quality of life and to help promote successful and sustainable communities. The regional economic development strategy must include goals concerning the following issues:
(i) Job creation and retention.
(ii) Infrastructure, including water, wastewater, and storm water infrastructure needs.
(iii) Housing.
(iv) Workforce training.
(v) Health care.
(vi) Local planning.
(vii) Land use.
(viii) Assistance to regional economic development groups.
(ix) Other regional development issues as determined by the Indiana economic development corporation.
(2) With respect to admissions taxes collected for a person admitted to the riverboat after June 30, 2010, the following amounts:
(A) Twenty-nine and thirty-three hundredths percent (29.33%) to the county treasurer of Orange County. The county treasurer
shall distribute the money received under this clause as
follows:
(i) Twenty-two and seventy-five hundredths percent
(22.75%) to the county treasurer of Dubois County for
distribution in the manner described in subdivision
(1)(A)(i).
(ii) Twenty-two and seventy-five hundredths percent
(22.75%) to the county treasurer of Crawford County for
distribution in the manner described in subdivision
(1)(A)(ii).
(iii) Fifty-four and five-tenths percent (54.5%) to be retained
by the county treasurer of Orange County for appropriation
by the county fiscal body after receiving a recommendation
from the county executive.
(B) Six and sixty-seven hundredths percent (6.67%) to the
fiscal officer of the town of Orleans. At least twenty percent
(20%) of the taxes received by the town under this clause must
be transferred to Orleans Community Schools.
(C) Six and sixty-seven hundredths percent (6.67%) to the
fiscal officer of the town of Paoli. At least twenty percent
(20%) of the taxes received by the town under this clause must
be transferred to the Paoli Community School Corporation.
(D) Twenty-six and sixty-seven hundredths percent (26.67%)
to be paid in equal amounts to the fiscal officers of the towns
of French Lick and West Baden Springs. At least twenty
percent (20%) of the taxes received by a town under this
clause must be transferred to the Springs Valley Community
School Corporation.
(E) Thirty and sixty-six hundredths percent (30.66%) to the
Indiana economic development corporation to be used in the
manner described in subdivision (1)(G).
(d) With respect to tax revenue collected from a riverboat that
operates from a county having a population of more than four hundred
thousand (400,000) but less than seven hundred thousand (700,000),
the treasurer of state shall quarterly pay the following amounts:
(1) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the city in which the riverboat is docked.
(2) Except as provided in subsection (k), one dollar ($1) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county in which the riverboat is docked.
(3) Except as provided in subsection (k), nine cents ($0.09) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the county convention and visitors bureau or
promotion fund for the county in which the riverboat is docked.
(4) Except as provided in subsection (k), one cent ($0.01) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the northwest Indiana law enforcement training
center.
(5) Except as provided in subsection (k), fifteen cents ($0.15) of
the admissions tax collected by the licensed owner for each
person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during a quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the state fair commission for use in any activity
that the commission is authorized to carry out under IC 15-13-3.
(6) Except as provided in subsection (k), ten cents ($0.10) of the
admissions tax collected by the licensed owner for each person:
(A) embarking on a gambling excursion during the quarter; or
(B) admitted to a riverboat during the quarter that has
implemented flexible scheduling under IC 4-33-6-21;
shall be paid to the division of mental health and addiction. The
division shall allocate at least twenty-five percent (25%) of the
funds derived from the admissions tax to the prevention and
treatment of compulsive gambling.
(7) Except as provided in subsection (k) and section 7 of this
chapter, Sixty-five cents ($0.65) of the admissions tax collected
by the licensed owner for each person embarking on a gambling
excursion during the quarter or admitted to a riverboat during the
quarter that has implemented flexible scheduling under
IC 4-33-6-21 shall be paid to the Indiana horse racing commission
to be distributed as follows, in amounts determined by the Indiana
horse racing commission, for the promotion and operation of
horse racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may make
a grant under this clause only for purses, promotions, and
routine operations of the racetrack. No grants shall be made
for long term capital investment or construction, and no grants
shall be made before the racetrack becomes operational and is
offering a racing schedule. state general fund.
(e) Money paid to a unit of local government under subsection (b),
(c), or (d):
(1) must be paid to the fiscal officer of the unit and may be
deposited in the unit's general fund or riverboat fund established
under IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5 but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(3) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(f) Money paid by the treasurer of state under subsection (b)(3) or
(d)(3) shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a
convention and visitor promotion fund; and
(2) used only for the tourism promotion, advertising, and
economic development activities of the county and community.
(g) Money received by the division of mental health and addiction
under subsections (b)(5) and (d)(6):
(1) is annually appropriated to the division of mental health and
addiction;
(2) shall be distributed to the division of mental health and
addiction at times during each state fiscal year determined by the
budget agency; and
(3) shall be used by the division of mental health and addiction
for programs and facilities for the prevention and treatment of
addictions to drugs, alcohol, and compulsive gambling, including
the creation and maintenance of a toll free telephone line to
provide the public with information about these addictions. The
division shall allocate at least twenty-five percent (25%) of the
money received to the prevention and treatment of compulsive
gambling.
(h) This subsection applies to the following:
(1) Each entity receiving money under subsection (b).
(2) Each entity receiving money under subsection (d)(1) through
(d)(2).
(3) Each entity receiving money under subsection (d)(5) through
(d)(7).
The treasurer of state shall determine the total amount of money paid
by the treasurer of state to an entity subject to this subsection during
the state fiscal year 2002. The amount determined under this subsection
is the base year revenue for each entity subject to this subsection. The
treasurer of state shall certify the base year revenue determined under
this subsection to each entity subject to this subsection.
(i) This subsection applies to an entity receiving money under
subsection (d)(3) or (d)(4). The treasurer of state shall determine the
total amount of money paid by the treasurer of state to the entity
described in subsection (d)(3) during state fiscal year 2002. The
amount determined under this subsection multiplied by nine-tenths
(0.9) is the base year revenue for the entity described in subsection
(d)(3). The amount determined under this subsection multiplied by
one-tenth (0.1) is the base year revenue for the entity described in
subsection (d)(4). The treasurer of state shall certify the base year
revenue determined under this subsection to each entity subject to this
subsection.
(j) This subsection does not apply to an entity receiving money
under subsection (c). For state fiscal years beginning after June 30,
2002, the total amount of money distributed to an entity under this
section during a state fiscal year may not exceed the entity's base year
revenue as determined under subsection (h) or (i). If the treasurer of
state determines that the total amount of money distributed to an entity
under this section during a state fiscal year is less than the entity's base
year revenue, the treasurer of state shall make a supplemental
distribution to the entity under IC 4-33-13-5(g).
(k) This subsection does not apply to an entity receiving money
under subsection (c). For state fiscal years beginning after June 30,
2002, the treasurer of state shall pay that part of the riverboat
admissions taxes that:
(1) exceeds a particular entity's base year revenue; and
(2) would otherwise be due to the entity under this section;
to the state general fund instead of to the entity.
(1) The first thirty-three million dollars ($33,000,000) of tax revenues collected under this chapter shall be set aside for revenue sharing under subsection (e).
(2) Subject to subsection (c), twenty-five percent (25%) of the remaining tax revenue remitted by each licensed owner shall be paid:
(A) to the city that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of:
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000); or
(B) to the county that is designated as the home dock of the riverboat from which the tax revenue was collected, in the case of a riverboat whose home dock is not in a city described in clause (A).
(3) Subject to subsection (d), the remainder of the tax revenue remitted by each licensed owner shall be paid to the state general fund. In each state fiscal year, the treasurer of state shall make the transfer required by this subdivision not later than the last business day of the month in which the tax revenue is remitted to the state for deposit in the state gaming fund. However, if tax revenue is received by the state on the last business day in a month, the treasurer of state may transfer the tax revenue to the state general fund in the immediately following month.
(b) This subsection applies only to tax revenue remitted by an operating agent operating a riverboat in a historic hotel district. After funds are appropriated under section 4 of this chapter, each month the treasurer of state shall distribute the tax revenue remitted by the operating agent under this chapter as follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid to the state general fund.
(2) Nineteen percent (19%) shall be paid to the West Baden Springs historic hotel preservation and maintenance fund established by IC 36-7-11.5-11(b). However, at any time the balance in that fund exceeds twenty million dollars ($20,000,000), the amount described in this subdivision shall be paid to the state general fund.
(3) Eight percent (8%) shall be paid to the Orange County development commission established under IC 36-7-11.5.
(4) Sixteen percent (16%) shall be paid in equal amounts to each town that is located in the county in which the riverboat is located and contains a historic hotel. The following apply to taxes received by a town under this subdivision:
(A) At least twenty-five percent (25%) of the taxes must be transferred to the school corporation in which the town is located.
(B) At least twelve and five-tenths percent (12.5%) of the taxes imposed on adjusted gross receipts received after June 30, 2010, must be transferred to the Orange County development commission established by IC 36-7-11.5-3.5.
(5) Nine percent (9%) shall be paid to the county treasurer of the county in which the riverboat is located. The county treasurer shall distribute the money received under this subdivision as
follows:
(A) Twenty-two and twenty-five hundredths percent (22.25%)
shall be quarterly distributed to the county treasurer of a
county having a population of more than forty thousand
(40,000) but less than forty-two thousand (42,000) for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(B) Twenty-two and twenty-five hundredths percent (22.25%)
shall be quarterly distributed to the county treasurer of a
county having a population of more than ten thousand seven
hundred (10,700) but less than twelve thousand (12,000) for
appropriation by the county fiscal body after receiving a
recommendation from the county executive. The county fiscal
body for the receiving county shall provide for the distribution
of the money received under this clause to one (1) or more
taxing units (as defined in IC 6-1.1-1-21) in the county under
a formula established by the county fiscal body after receiving
a recommendation from the county executive.
(C) Fifty-five and five-tenths percent (55.5%) shall be retained
by the county in which the riverboat is located for
appropriation by the county fiscal body after receiving a
recommendation from the county executive.
(6) Five percent (5%) shall be paid to a town having a population
of more than two thousand (2,000) but less than three thousand
five hundred (3,500) located in a county having a population of
more than nineteen thousand five hundred (19,500) but less than
twenty thousand (20,000). At least forty percent (40%) of the
taxes received by a town under this subdivision must be
transferred to the school corporation in which the town is located.
(7) Five percent (5%) shall be paid to a town having a population
of more than three thousand five hundred (3,500) located in a
county having a population of more than nineteen thousand five
hundred (19,500) but less than twenty thousand (20,000). At least
forty percent (40%) of the taxes received by a town under this
subdivision must be transferred to the school corporation in which
the town is located.
(8) Five-tenths percent (0.5%) of the taxes imposed on adjusted
gross receipts received after June 30, 2010, shall be paid to the
Indiana economic development corporation established by
IC 5-28-3-1.
(c) For each city and county receiving money under subsection
(a)(2), the treasurer of state shall determine the total amount of money
paid by the treasurer of state to the city or county during the state fiscal
year 2002. The amount determined is the base year revenue for the city
or county. The treasurer of state shall certify the base year revenue
determined under this subsection to the city or county. The total
amount of money distributed to a city or county under this section
during a state fiscal year may not exceed the entity's base year revenue.
For each state fiscal year, the treasurer of state shall pay that part of the
riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under this
section;
to the state general fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer from the
tax revenue remitted to the state general fund under subsection (a)(3)
to the build Indiana fund an amount that when added to the following
may not exceed two hundred fifty million dollars ($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fund
under IC 4-32.2-7-7.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis as needed
to meet the obligations of the build Indiana fund. If in any state fiscal
year insufficient money is transferred to the state general fund under
subsection (a)(3) to comply with this subsection, the treasurer of state
shall reduce the amount transferred to the build Indiana fund to the
amount available in the state general fund from the transfers under
subsection (a)(3) for the state fiscal year.
(e) Before August 15 of each year, the treasurer of state shall
distribute the wagering taxes set aside for revenue sharing under
subsection (a)(1) to the county treasurer of each county that does not
have a riverboat according to the ratio that the county's population
bears to the total population of the counties that do not have a
riverboat. Except as provided in subsection (h), the county auditor shall
distribute the money received by the county under this subsection as
follows:
(1) To each city located in the county according to the ratio the
city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be retained by the county.
(f) Money received by a city, town, or county under subsection (e) or (h) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or county for a particular year (a property tax reduction under this subdivision does not reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund created under IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, and IC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm water management projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the money is appropriated by the fiscal body of the city, town, or county. Money used under this subdivision does not reduce the property tax levy of the city, town, or county for a particular year or reduce the maximum levy of the city, town, or county under IC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving money under IC 4-33-12-6(c). Before September 15 of each year, the treasurer of state shall determine the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year. If the treasurer of state determines that the total amount of money distributed to an entity under IC 4-33-12-6 during the preceding state fiscal year was less than the entity's base year revenue (as determined under IC 4-33-12-6), the treasurer of state shall make a supplemental distribution to the entity from taxes collected under this chapter and deposited into the state general fund.
(1) the entity's base year revenue (as determined under IC 4-33-12-6); minus
(2) the sum of:
(A) the total amount of money distributed to the entity during the preceding state fiscal year under IC 4-33-12-6; plus
(B) any amounts deducted under IC 6-3.1-20-7.
(h) This subsection applies only to a county containing a consolidated city. The county auditor shall distribute the money received by the county under subsection (e) as follows:
(1) To each city, other than a consolidated city, located in the county according to the ratio that the city's population bears to the total population of the county.
(2) To each town located in the county according to the ratio that the town's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2) are made, the remainder shall be paid in equal amounts to the consolidated city and the county.
(1) the
(2) a determination by the commission that the licensee satisfies the conditions of this chapter.
Renewal fees paid under this section shall be deposited in the state general fund.
(b) A licensee who wishes to renew a gambling game license must pay an annual renewal fee equal to the sum of:
(1) one hundred dollars ($100) per slot machine operated by the licensee; plus
(2) the amount that the licensee paid to the state general fund under IC 4-35-7-12(j) (before its repeal) for the state fiscal year ending on June 30, 2013.
(c) The annual renewal fee imposed by subsection (b) is payable in two (2) installments as follows:
(1) The amount specified in subsection (b)(1) is due on July 1.
(2) The amount specified in subsection (b)(2) is due on January 1.
(1) As a result of a bankruptcy, a receivership, or a debt adjustment initiated by or against the initial licensee or the substantial owners of the initial licensee.
(2) Because:
(A) the licensee's license has been cancelled, terminated, or revoked by the commission; or
(B) the commission determines that transferring the license is in the best interests of Indiana.
(3) Because of the death of a substantial owner of the initial licensee.
A transfer permitted under this subsection is subject to section 7 of this chapter.
(1) a gambling game license is:
(A) transferred;
(B) sold; or
(C) purchased; or
(2) a voting trust agreement or other similar agreement is established with respect to the gambling game license.
(b) The commission shall adopt rules governing the procedure a licensee or other person must follow to take an action under subsection (a). The rules must specify that a person who obtains an ownership interest in a gambling game license must meet the criteria of this article and comply with the rules adopted by the commission. A licensee may transfer a gambling game license only in accordance with this article and the rules adopted by the commission.
(c) A person may not:
(1) lease;
(2) hypothecate; or
(3) borrow or loan money against;
a gambling game license.
(d) Except as provided in subsection (e), a transfer fee is imposed on an initial licensee who sells or otherwise relinquishes a controlling interest, as determined under the rules of the commission, in a gambling game license. The amount of the fee is fifty million dollars ($50,000,000).
(e) The fee imposed by subsection (d) does not apply if:
(1) the gambling game license is transferred as a result of an event described in section
(2) the controlling interest in the gambling game license is transferred in a transaction in which no gain or loss is recognized as a result of the transaction in accordance with Section 351 of the Internal Revenue Code.
(f) The transfer of a gambling game license by a person other than the initial licensee to receive the gambling game license is not subject to a transfer fee.
year;
increased by a percentage that does not exceed the percent of
increase in the United States Department of Labor Consumer
Price Index during the year preceding the year in which an
increase is established.
If the amount specified in subdivision (1) for the state fiscal year
exceeds the amount specified in subdivision (2), the licensee shall
transfer the amount of the excess to the commission for deposit in the
state general fund. The licensee shall adjust the transfers required
under this section in the final month of the state fiscal year to comply
with the requirements of this subsection.
(b) As used in this section, "candidate" refers to any of the following:
(1) A candidate for a state office.
(2) A candidate for a legislative office.
(3) A candidate for a local office.
(c) As used in this section, "committee" refers to any of the following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the house of the general assembly.
(4) A committee organized by a legislative caucus of the senate of the general assembly.
(d) Money distributed to a horsemen's association under
(1) To make a contribution to a candidate or a committee.
(2) For lobbying (as defined in IC 2-7-1-9).
(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 wagering on gambling games conducted after June 30, 2013, 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.
(f) The following fees may not be deducted from a licensee's adjusted gross receipts:
(1) The annual license renewal fee (IC 4-35-5-4).
(2) The tobacco cessation support fee (IC 4-35-8.6).
(3) The gaming integrity fee (IC 4-35-8.7).
(4) The problem gambling fee (IC 4-35-8.8).
games conducted under this article after June 30, 2013.
(b) A licensee's qualified daily deduction amount for purposes
of calculating the licensee's taxable receipts for a particular day is
equal to the total amount that the licensee remitted to the
department for that day under IC 4-35-8.2 and IC 4-35-8.5.
Chapter 8.2. Racing Support Fees
Sec. 1. This chapter applies to a licensee's receipts from wagering on gambling games conducted after June 30, 2013.
Sec. 2. The Indiana horse racing commission shall administer this chapter.
Sec. 3. (a) A licensee shall pay to the department a racing support fee equal to twelve percent (12%) of the adjusted gross receipts received from wagering on gambling games at the licensee's racetrack. A licensee shall remit the fee charged by this section to the department before the close of the business day following the day the wagers are made.
(b) The department shall deposit fees received under this section in the Indiana horse racing support fund established by section 5 of this chapter.
Sec. 4. (a) The department may require payment of the racing support fee by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(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.
Sec. 5. (a) The Indiana horse racing support fund is established. The fund shall be administered by the Indiana horse racing commission.
(b) The Indiana horse racing support fund consists of the money deposited in the fund under section 3 of this chapter. Money in the fund does not revert to the state general fund at the end of a state fiscal year.
(c) The Indiana horse racing commission shall distribute money in the Indiana horse racing support fund:
(1) to the horsemen's associations;
(2) as purse supplements;
(3) to the state fair commission; and
(4) to the breed development funds;
in the manner and amounts required by section 6 of this chapter.
(d) Money in the Indiana horse racing support fund is continuously appropriated to the Indiana horse racing commission for the purposes of section 6 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 6 of this chapter.
Sec. 6. (a) The Indiana horse racing commission shall distribute money in the Indiana horse racing support fund as follows:
(1) Five-tenths percent (0.5%) to horsemen's associations for equine promotion or welfare according to the ratios specified in subsection (b).
(2) Two and five-tenths percent (2.5%) to horsemen's associations for backside benevolence according to the ratios specified in subsection (b).
(3) Ninety-seven percent (97%) to promote horses and horse racing as provided in subsection (d).
(b) Money distributed under subsection (a)(1) and (a)(2) must be allocated as follows:
(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.
(c) A horsemen's association shall expend money received under subsection (a)(1) and (a)(2) for:
(1) a purpose promoting the equine industry;
(2) equine welfare; or
(3) 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.
(d) The Indiana horse racing commission shall ensure that the amounts distributed under subsection (a)(3) are used 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 supplementing
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) Three hundred seventy-five thousand dollars
($375,000) to the state fair commission to be used by the
state fair commission to support standardbred racing and
facilities at the state fairgrounds.
(B) One hundred twenty-five thousand dollars ($125,000)
to the state fair commission to be used by the state fair
commission to make grants to county fairs to support
standardbred racing and facilities at county fair tracks.
(C) Fifty percent (50%) of the amount remaining after the
distributions under clauses (A) and (B) for the following
purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
supplementing standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the
horsemen's association representing standardbred
owners and trainers.
(D) Fifty percent (50%) of the amount remaining after the
distributions under clauses (A) and (B) 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 supplementing 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.
(e) Expenditures made under subsections (c) and (d) are subject
to the regulatory requirements of section 8 of this chapter.
Sec. 7. (a) The Indiana horse racing commission shall cooperate
with each permit holder holding a gambling game license under
this article to ensure that fees remitted under this chapter in 2013
are available to support the permit holders' racing programs for
the remainder of calendar year 2013.
(b) For each recognized meeting beginning after December 31,
2013, a permit holder holding a gambling game license under this
article shall submit for the approval of the Indiana horse racing
commission a plan for the distribution of money in the Indiana
horse racing support fund to supplement purses paid for races
conducted at the permit holder's racetrack. A permit holder's plan
must:
(1) be submitted at the time the permit holder applies for a
renewal of the permit holder's recognized meeting permit;
and
(2) comply with the requirements of section 6 of this chapter.
(c) The Indiana horse racing commission shall adopt rules under
IC 4-22-2 to govern the payment of purse supplements from money
received under this chapter.
Sec. 8. (a) Money distributed under section 6 of this chapter may
not be expended unless the expenditure:
(1) is for a purpose authorized by section 6 of this chapter;
and
(2) is:
(A) for a purpose promoting the equine industry or equine
welfare;
(B) for a benevolent purpose that is in the best interests of
horse racing in Indiana; or
(C) necessary for the operations of a horsemen's
association required to implement and fulfill the purposes
of this chapter.
(b) The Indiana horse racing commission may review any
expenditure of money distributed under section 6 of this chapter to
ensure that the requirements of this section are satisfied.
(c) The Indiana horse racing commission shall adopt rules under
IC 4-22-2 concerning:
(1) the review and oversight of money distributed under
section 6 of this chapter; and
(2) the enforcement of this section.
(d) The following apply to a horsemen's association receiving a
distribution of money under section 6 of this chapter:
(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.
(2) The horsemen's association must register with the Indiana
horse racing commission.
(e) A report submitted under subsection (d) must include any
information required by the Indiana horse racing commission.
(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.
Chapter 8.6. Tobacco Cessation Support Fees
Sec. 1. A licensee that offers slot machine wagering under this article shall annually pay to the Indiana horse racing commission a tobacco cessation support fee equal to one million five hundred thousand dollars ($1,500,000) for each racetrack at which the licensee offers slot machine wagering.
Sec. 2. A licensee shall pay the fee imposed by section 1 of this chapter before September 1.
Sec. 3. The Indiana horse racing commission shall transfer the fees collected under this chapter to the treasurer of state for deposit in the Indiana tobacco master settlement agreement fund.
Sec. 4. Fees deposited in the Indiana tobacco master settlement agreement fund under this chapter must be used for the purposes of the tobacco use prevention and cessation program.
(b) The fund shall be administered by the Indiana horse racing commission.
(c) The fund consists of gaming integrity fees deposited in the fund under this chapter.
(d) The treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as other public funds may be invested.
(e) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(f) Money in the fund may be used by the Indiana horse racing commission only for the following purposes:
(1) To pay the cost of taking and analyzing equine specimens under IC 4-31-12-6(b) or another law or rule and the cost of any supplies related to the taking or analysis of specimens.
(2) To pay dues to the Drug Testing Standards and Practices (DTSP) Committee of the Association of Racing Commissioners International.
(3) To provide grants for research for the advancement of equine drug testing. Grants under this subdivision must be approved by the Drug Testing Standards and Practices (DTSP) Committee of the Association of Racing Commissioners International or by the Racing Mediation and Testing Consortium.
(4) To pay the costs of post-mortem examinations under IC 4-31-12-10.
(5) To pay other costs incurred by the commission to maintain the integrity of pari-mutuel racing.
(1) the standardbred association board;
(2) the Indiana horse racing commission; and
(3) the Indiana county fair association.
(b) The review committee shall meet upon the call of the presiding officer of the commission to make recommendations to the commission concerning grants made under IC 4-35-8.2-6(d)(2)(B).
