HOUSE BILL No. 5400


     December 3, 1997, Introduced by Reps. Griffin, Frank, Law, Curtis, Hanley, Hale and Bankes and referred to the Committee on Tax Policy.


        A bill to amend 1995 PA 279, entitled

   "Horse racing law of 1995,"

   by amending section 22 (MCL 431.322).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 22.  (1) Each licensed racetrack located in a city area

 2    shall pay a license fee to the racing commissioner of $1,000.00

 3    annually, and any other licensed racetrack shall pay a license

 4    fee of $200.00 annually.

 5         (2)  During calendar year 1996, each  EACH holder of a race

 6    meeting license shall pay to the state treasurer, from the

 7    holder's commission, a tax in the amount of 2.5% of all money

 8    wagered  on interstate and  BEYOND AND EXCLUDING THE FIRST

 9    $50,000.00 OF DAILY WAGERS ON intertrack simulcast races

10    conducted at the holder's licensed race meetings  in 1996  in a

11    manner and time as the racing commissioner requires.  For


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 1    calendar year 1997 and each year thereafter, the tax rate shall

 2     increase to 3.5% of all money wagered on interstate and inter-

 3     track simulcast races conducted at the holder's licensed race

 4     meetings each calendar year.  Not later than 4 years after the

 5     effective date of this act, the racing commissioner shall report

 6     to the chairpersons of the senate and house committees responsi-

 7     ble for legislation concerning horse racing as to the effect on

 8     the horse racing industry of the reduction in the tax pursuant to

 9     subsection (2). 

10         (3) By eliminating the pari-mutuel wagering tax on live

11    racing programs, it is not the intent of the legislature to

12    diminish the funding and appropriations for the Michigan agricul-

13    ture equine industry fund and related programs described in sec-

14    tion 20.  The pari-mutuel tax reduction effected by this section

15    is intended to generally allow for the improvement of the

16    pari-mutuel horse racing and breeding industry in this state by

17    increasing purses at licensed race meetings and making additional

18    pari-mutuel revenues available for capital improvements at

19    licensed racetracks in this state.



















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