SF 2978

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to gaming; assessing a tax of six percent on 
  1.3             wagers at an authorized card club conducted by a 
  1.4             licensed pari-mutuel racetrack; amending Minnesota 
  1.5             Statutes 2002, sections 240.135; 240.15, subdivision 
  1.6             1; 240.30, subdivision 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 240.135, is 
  1.9   amended to read: 
  1.10     240.135 [CARD CLUB REVENUE.] 
  1.11     (a) From the amounts received from charges authorized under 
  1.12  section 240.30, subdivision 4, paragraph (a), the licensee shall 
  1.13  set aside the amounts specified in this section to be used for 
  1.14  purse payments. These amounts are in addition to the breeders 
  1.15  fund and purse requirements set forth elsewhere in this chapter. 
  1.16     (1) For amounts between zero and $6,000,000, the licensee 
  1.17  shall set aside ten percent to be used as purses. 
  1.18     (2) For amounts in excess of $6,000,000, the licensee shall 
  1.19  set aside 14 percent to be used as purses. 
  1.20     (b) From all amounts set aside under paragraph (a), the 
  1.21  licensee shall set aside ten percent to be deposited in the 
  1.22  breeders fund.  The licensee and the horseperson's organization 
  1.23  representing the majority of horsepersons who have raced at the 
  1.24  racetrack during the preceding 12 months may negotiate 
  1.25  percentages different from those stated in this section if the 
  1.26  agreement is in writing and filed with the Racing Commission. 
  2.1      (c) It is the intent of the legislature that the proceeds 
  2.2   of the card playing activities authorized by this chapter be 
  2.3   used to improve the horse racing industry by improving purses.  
  2.4   The commission shall annually review the financial details of 
  2.5   card playing activities and determine if the present use of card 
  2.6   playing proceeds is consistent with the policy established by 
  2.7   this paragraph.  If the commission determines that the use of 
  2.8   the proceeds does not comply with the policy set forth herein, 
  2.9   then the commission shall direct the parties to make the changes 
  2.10  necessary to ensure compliance.  If these changes require 
  2.11  legislation, the commission shall make the appropriate 
  2.12  recommendations to the legislature. 
  2.13     Sec. 2.  Minnesota Statutes 2002, section 240.15, 
  2.14  subdivision 1, is amended to read: 
  2.15     Subdivision 1.  [TAXES IMPOSED.] (a) There is imposed a tax 
  2.16  at the rate of six percent of: 
  2.17     (1) on the amount in excess of $12,000,000 annually 
  2.18  withheld from all pari-mutuel pools by the licensee, including 
  2.19  breakage and amounts withheld under section 240.13, subdivision 
  2.20  4; and 
  2.21     (2) on the amount wagered at a card club authorized under 
  2.22  section 240.30. 
  2.23     For the purpose of this subdivision, "annually" is the 
  2.24  period from July 1 to June 30 of the next year. 
  2.25     In addition to the above tax, the licensee must designate 
  2.26  and pay to the commission a tax of one percent of the total 
  2.27  amount bet on each racing day, for deposit in the Minnesota 
  2.28  breeders fund.  
  2.29     The taxes imposed by this clause must be paid from the 
  2.30  amounts permitted to be withheld by a licensee under section 
  2.31  240.13, subdivision 4, and section 240.30, subdivision 4, 
  2.32  paragraph (b).  
  2.33     (b) The commission may impose an admissions tax of not more 
  2.34  than ten cents on each paid admission at a licensed racetrack on 
  2.35  a racing day if:  
  2.36     (1) the tax is requested by a local unit of government 
  3.1   within whose borders the track is located; 
  3.2      (2) a public hearing is held on the request; and 
  3.3      (3) the commission finds that the local unit of government 
  3.4   requesting the tax is in need of its revenue to meet 
  3.5   extraordinary expenses caused by the racetrack. 
  3.6      Sec. 3.  Minnesota Statutes 2002, section 240.30, 
  3.7   subdivision 4, is amended to read: 
  3.8      Subd. 4.  [CHARGES; TAX WITHHELD.] (a) The authorized 
  3.9   licensee may charge patrons for card playing services by 
  3.10  deducting and retaining money from wagers, by charging a fee 
  3.11  based on playing time, or by any other means authorized by the 
  3.12  commission. 
  3.13     (b) The authorized licensee shall deduct from wagers and 
  3.14  retain the amount of the tax imposed under section 240.15, 
  3.15  subdivision 1, paragraph (a), clause (2).