Differential parimutuel tax rates

From the 2024 DOR Tax Exemption Study

67.16.105(2) - Differential parimutuel tax rates Description The pari-mutuel tax on gross receipts of betting machines at licensed horse races features two tax rates depending on the total wagering receipts at the particular track for the previous year: - If receipts were greater than $50 million, the tax rate is 1.3%. - If receipts were $50 million or less, the tax rate is 1.803%. Purpose The higher 1.803% pari-mutuel rate category for smaller racetracks is attributable to a proposed new track in 2002. The anticipated revenues at the existing 1.3% rate did not generate sufficient funds to cover the state’s cost of supervision, therefore, the higher tax rate was added to the statute. This track was never constructed, and currently, the only racetrack in operation pays the original 1.3% rate. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this differential pari-mutuel rate would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions