House of Representatives

HB 2368

hardship tax credit; permittee; racing

Sponsors: Representatives Somers; Giffords, Hershberger

DP	Committee on Natural Resources and Agriculture
DPA	Committee on Ways and Means
X	Caucus and COW
	As Passed the House

HB 2368 adjusts for inflation the formula used to determine if a horse or dog racetrack is eligible for a tax credit.

History

Laws 1994, Chapter 370 established a hardship tax credit for eligible racetracks, beginning in 1995. Current law allows commercial racetracks to reduce the amount of pari-mutuel taxes owed to the state by using a formula that takes into account a decline in handle (total amount wagered at a racetrack) compared to a base year. The base year is established by determining the highest handle generated by a racetrack between FY 1990-94.

According to information provided by the Department of Revenue, the Gross Domestic Product (GDP) since 1995 would result in an 11.2 per cent increase from the base year.

A fiscal note has been requested on this bill.

Provisions

· Allows the base period amount (the base year) which is used to determine the hardship tax credit, to be adjusted for inflation using the Gross Domestic Product (GDP) price deflator.

· Provides that the base year is adjusted for inflation for each fiscal year, beginning with FY 1994-95.

HB 2368 passed the NRA Committee unamended.

HB 2368 passed the Ways and Means committee amended as follows:

· Provides that only commercial racetracks in counties with a population of less then one million five hundred thousand persons can adjust the base period amount.

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· 45th Legislature

· First Regular Session 2 March 8, 2001

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