HB360 (2018) Detail

Reducing the pari-mutuel tax.


HB 360-FN-A - AS INTRODUCED

 

 

2017 SESSION

17-0422

08/10

 

HOUSE BILL 360-FN-A

 

AN ACT reducing the pari-mutuel tax.

 

SPONSORS: Rep. Sylvia, Belk. 6

 

COMMITTEE: Ways and Means

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill reduces the pari-mutuel tax.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0422

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT reducing the pari-mutuel tax.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Pari-Mutuel Tax.  Amend RSA 284:23, I-IV to read as follows:

I.(a)  Each person, association or corporation licensed to conduct a running horse race or running horse meet under this chapter shall pay to the state treasurer a sum of money equal to one percent of the total contributions to all pari-mutuel pools conducted, made, or sold at any such race or meet licensed under this chapter.  The amounts so paid to the state treasurer shall be for the use of the state.

(b)  Each person, association, or corporation licensed to simulcast a running horse race or running horse meet under this chapter shall pay to the state treasurer a sum of money equal to [1 1/4] 1/2 percent of the total contributions to all such pari-mutuel pools conducted, made, or sold at such simulcast race or simulcast race meet by such person, association, or corporation licensed to simulcast such races.  The amount so paid to the state treasurer shall be for the use of the state.

(c)  Any amounts so paid to the state treasurer by any person, association, or corporation licensed to simulcast a running horse race or running horse meet under this chapter collected in Cheshire county shall be held in escrow for a period of not more than 36 months by the state treasurer.  If any person, association, or corporation licensed under this chapter has commenced to hold a live race meet within the 36-month period the escrowed amounts shall be paid to the lottery commission to offset any expenses incurred for the services required to hold such meet.  If there is no live race meet within the 36-month period all sums so escrowed shall be for the use of the state.

II.(a)  Each person, association, or corporation licensed to conduct a harness horse race or harness horse race meet under this chapter shall pay to the state treasurer a sum of money equal to one percent of all total contributions to all pari-mutuel pools in a calendar day.  The amount so paid to the state treasurer shall be for the use of the state.

(b)  Each person, association, or corporation licensed to simulcast a harness horse race or simulcast a harness horse race meet under this chapter shall pay to the state treasurer a sum of money equal to [1 1/4] 1/2 percent of the total contributions to all such pari-mutuel pools conducted, made, or sold at such simulcast race or race meet by such person, association, or corporation licensed to simulcast such races.  The amount so paid to the state treasurer shall be for the use of the state.

(c)  Any amounts so paid to the state treasurer by any person, association, or corporation licensed to simulcast a harness horse race or harness horse race meet under this chapter collected in Cheshire county shall be held in escrow for a period of not more than 36 months by the state treasurer.  If any person, association, or corporation licensed under this chapter has commenced to hold a live race meet within the 36-month period the escrowed amounts shall be paid to the lottery commission to offset any expenses incurred for the services required to hold such meet.  If there is no live race meet within the 36-month period all sums so escrowed shall be for the use of the state.

III.(a)  [Repealed.]

(b)  Each person, association or corporation licensed to simulcast a dog race or simulcast a dog race meet under this chapter shall pay to the state treasurer a sum of money equal to [1 1/2] 1/2 percent of all pari-mutuel pools conducted, made, or sold at such simulcast race or simulcast race meet by such person, association, or corporation licensed under this chapter.  The amount so paid to the state treasurer shall be for the use of the state.

(c)  Any amounts so paid to the state treasurer by any person, association, or corporation licensed to simulcast a dog race or meet under this chapter collected in Cheshire county shall be held in escrow for a period of not more than 36 months by the state treasurer.  If any person, association, or corporation licensed under this chapter has commenced to hold a live race meet within the 36-month period the escrowed amounts shall be paid to the lottery commission to offset any expenses incurred for the services required to hold such meet.  If there is no live race meet within the 36-month period all sums so escrowed shall be for the use of the state.

IV.  Each person, association, or corporation licensed to conduct a race or race meet under this chapter shall also pay to the city or town treasurer in which the racing plant is located for each day of racing, whether such day includes live racing only, simulcast racing only, or a combination thereof,[ the fees assessed in subparagraphs (a) and (b) below] $10 for each $10,000 or portion thereof, based upon the aggregate pari-mutuel pools conducted, made, or sold by such person, association, or corporation on each such day.  This rate is provided if said person, association, or corporation has a license to conduct races or race meets for more than 10 days during the year for which the license is issued.  If said person, association, or corporation has a license to conduct races or race meets for 10 days or less, the per diem fee shall be determined by the lottery commission.

[(a)  Each Weekday including Saturday Pari-mutuel pool Fee [Under $300,000 $ 300 per day $300,000 or more $ 350 per day]

(b)  Each Sunday Pari-mutuel pool Fee Under $350,000 $ 400 per day $350,000 but under $500,000 $ 800 per day $500,000 or more $1,200 per day]

2  Effective Date.  This act shall take effect July 1, 2017.

 

LBAO

17-0422

1/3/17

 

HB 360-FN-A- FISCAL NOTE

as introduced

 

AN ACT reducing the pari-mutuel tax.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [ X ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

$(205,571)

$(205,571)

$(205,571)

$(205,571)

   Expenditures

$0

$0

$0

$0

Funding Source:

  [    ] General            [ X ] Education            [    ] Highway           [    ] Other

 

LOCAL:

 

 

 

 

   Revenue

$(86,475)

$(86,475)

$(86,475)

$(86,475)

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill amends RSA 284:23 by decreasing the pari-mutuel tax from 1 1/4 percent (horse racing) and 1 1/2 percent (dog racing) to 1/2 percent of the total contributions. This bill also decreases per diem fees paid to the city or town treasurers in which the racing facility is located. Pursuant to RSA 284:21-j, I, lottery fund balance (net profit) shall be deposited in the education trust fund at the end of the fiscal year. The Lottery Commission estimates a $205,571 decrease in state revenue and $86,475 decrease in local revenue in each fiscal year based on the two entities in New Hampshire which are currently licensed and subject to the pari-mutuel tax:

 

Estimated State Impact

Race Type

FY 2016 Handle

Current Tax Rate

FY 2016 Tax Yield

Proposed Tax Rate

Proposed Tax Yield

Fiscal Impact

Horse (Thoroughbred)

$12,696,349

1.25%

$158,704

.5%

$63,482

$(95,223)

Harness

$1,903,910

1.25%

$23,799

.5%

$9,520

$(14,279)

Dog (Greyhound)

$9,624,888

1.5%

$144,373

.5%

$48,124

$(96,249)

Total

$24,225,147

 

$326,876

 

$121,126

$(205,751)

Estimated Local Impact

FY 2016 Handle

Current Per Diem Fee

FY 2016 Revenue Yield

Proposed Per Diem Fee

Proposed Revenue Yield

Fiscal Impact

$24,225,147

$300-$1,200 based on pari-mutuel sales

$110,700

$10 for each $10,000 of aggregate pari-mutuel pool conducted

$24,225

$(86,475)

 

AGENCIES CONTACTED:

Lottery Commission

 

 

Links

HB360 at GenCourtMobile

Action Dates

Date Body Type
Jan. 19, 2017 House Hearing
Feb. 2, 2017 House Exec Session
Oct. 25, 2017 House Exec Session
Jan. 3, 2018 House Floor Vote

Bill Text Revisions

HB360 Revision: 2513 Date: Jan. 30, 2017, 9:48 a.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 10
Jan. 19, 2017 Public Hearing: 01/19/2017 11:00 AM LOB 202
Jan. 26, 2017 Subcommittee Work Session: 01/26/2017 12:00 PM LOB 202
Feb. 2, 2017 Executive Session: 02/02/2017 LOB 202
Retained in Committee
Sept. 6, 2017 Retained Bill Subcommittee Work Session: 09/06/2017 01:00 PM LOB 202
Oct. 25, 2017 Executive Session: 10/25/2017 10:00 AM LOB 202
Jan. 3, 2018 Committee Report: Inexpedient to Legislate for 01/03/2018 (Vote 23-0; CC)
Jan. 3, 2018 Inexpedient to Legislate: MA VV 01/03/2018 HJ 1 P. 46