99D.15 - PARI-MUTUEL WAGERING TAXES -- RATE -- CREDIT.
99D.15 PARI-MUTUEL WAGERING TAXES -- RATE --
CREDIT.
1. A tax of six percent is imposed on the gross sum wagered by
the pari-mutuel method at each horse race meeting. The tax imposed
by this subsection shall be paid by the licensee to the commission
within ten days after the close of each horse race meeting and shall
be distributed as follows:
a. If the racetrack is located in a city, five percent of the
gross sum wagered shall be deposited with the commission. One-half
of one percent of the gross sum wagered shall be remitted to the
treasurer of the city in which the racetrack is located and shall be
deposited in the general fund of the city. The remaining one-half of
one percent of the gross sum wagered shall be remitted to the
treasurer of the county in which the racetrack is located and shall
be deposited in the general fund of the county.
b. If the racetrack is located in an unincorporated part of a
county, five and one-half percent of the gross sum wagered shall be
deposited with the commission. The remaining one-half of one percent
of the gross sum wagered shall be remitted to the treasurer of the
county in which the racetrack is located and shall be deposited in
the general fund of the county.
2. A tax credit of up to five percent of the gross sum wagered
per year shall be granted to licensees licensed for horse races and
paid into a special fund to be used for debt retirement or operating
expenses. However, the tax credit is equal to six percent of the
gross sum wagered in a year when the gross sum wagered is less than
ninety million dollars. Any portion of the credit not used in a
particular year shall be retained by the commission. A tax credit
shall first be assessed against any share going to a city, then to
the share going to a county, and then to the share going to the
state.
3. a. A tax is imposed on the gross sum wagered by the
pari-mutuel method at each track licensed for dog races. The tax
imposed by this subsection shall be paid by the licensee to the
commission within ten days after the close of the track's racing
season. The rate of tax on each track is as follows:
(1) Six percent, if the gross sum wagered in the racing season is
fifty-five million dollars or more.
(2) Five percent, if the gross sum wagered in the racing season
is thirty million dollars or more but less than fifty-five million
dollars.
(3) Four percent, if the gross sum wagered in the racing season
is less than thirty million dollars.
b. The tax revenue shall be distributed as follows:
(1) If the racetrack is located in a city, one-half of one
percent of the gross sum wagered shall be remitted to the treasurer
of the city in which the racetrack is located and shall be deposited
in the general fund of the city. One-half of one percent of the
gross sum wagered shall be remitted to the treasurer of the county in
which the racetrack is located and shall be deposited in the general
fund of the county. The remaining amount shall be deposited with the
commission.
(2) If the racetrack is located in an unincorporated part of a
county, one-half of one percent of the gross sum wagered shall be
remitted to the treasurer of the county in which the racetrack is
located and shall be deposited in the general fund of the county.
The remaining amount shall be deposited with the commission.
c. If the rate of tax imposed under paragraph "a" is six
percent, five percent, or four percent, a licensee shall set aside
for retiring any debt of the licensee, for capital improvement to the
facilities of the licensee, for funding of possible future operating
losses, or for charitable giving, the following amount:
(1) If the rate of tax paid by the licensee is six percent,
one-sixth of the tax liability by the licensee during the racing
season shall be set aside.
(2) If the rate of tax paid by the licensee is five percent, one
percent of the gross sum wagered in the racing season shall be set
aside.
(3) If the rate of tax paid by the licensee is four percent, two
percent of the gross sum wagered in the racing season shall be set
aside.
4. A tax of two percent is imposed on the gross sum wagered by
the pari-mutuel method on horse races and dog races which are
simultaneously telecast. The tax imposed by this subsection is in
lieu of the taxes imposed pursuant to subsection 1 or 3, but the tax
revenue from simulcast horse races shall be distributed as provided
in subsection 1 and the tax revenue from simulcast dog races shall be
distributed as provided in subsection 3. Section History: Recent Form
83 Acts, ch 187, § 15; 84 Acts, ch 1266, § 17; 89 Acts, ch 216, §
7--9; 90 Acts, ch 1261, § 33; 91 Acts, ch 166, §6; 91 Acts, ch 268,
§427; 92 Acts, ch 1203, §8--10; 92 Acts, ch 1207, §2; 94 Acts, ch
1107, §6; 2004 Acts, ch 1136, §15, 16; 2009 Acts, ch 182, §102
Referred to in § 99D.9, 99D.10, 99D.14, 99D.17