Exemption

Horse racing

B&O Tax exemption · RCW 82.04.350 · enacted 1935

All exemptions & deductions

Details

Citation
RCW 82.04.350
Study reference
E1072-1
Tax type
B&O Tax
Preference type
Exemption
Category
Tax Base
Year enacted
1935
End date
None scheduled

Fiscal impact (2024 study estimates)

Revenue if repealed — local ($M)
FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
Revenue if repealed — state ($M)
FY 2024: 0 · FY 2025: CTI · FY 2026: CTI · FY 2027: CTI
Taxpayer savings — local ($M)
FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
Taxpayer savings — state ($M)
FY 2024: CTI · FY 2025: CTI · FY 2026: CTI · FY 2027: CTI

CTI = confidential taxpayer information · D = unable to disclose

From the 2024 DOR Tax Exemption Study

Parimutuel wagering. Effective July 1, 2005, persons engaging within this state in the business of conducting race meets for which a license must be obtained from the Washington horse racing commission are taxable under the parimutuel wagering B&O tax classification. Chapter 369, Laws of 2005. This tax is in addition to any tax imposed under chapter 67.16 RCW. Unlike the parimutuel tax, the B&O tax applies to both in-state and out-of-state parimutuel wagering. The measure of tax is the gross income of the business derived from parimutuel wagering. For purposes of this classification, "gross income" does not include amounts paid to players for winning wagers, or taxes imposed or other distributions required under chapter 67.16 RCW (i.e., RCW 67.16.102 owners bonus, RCW 67.16.105 fair fund, RCW 67.16.175 breeders award).

Does this apply to you?

This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: