CHAPTER 18
FORMERLY
HOUSE BILL NO. 231
AN ACT TO AMEND CHAPTER 5, TITLE 28 AND CHAPTER 23, TITLE 30, DELAWARE CODE, RELATING TO THE STATE TAX AND LICENSEE'S COMMISSIONS ON CONTRIBUTIONS TO PAR1-MUTUEL AND TOTALIZATOR POOLS CONDUCTED OR MADE AT HARNESS RACING TRACKS, LICENSEE'S PAYMENTS TO THE DELAWARE STANDARDBRED DEVELOPMENT FUND AND STATE LICENSE FEES FOR HARNESS RACING MEET OPERATORS, HARNESS RACE HORSE OWNERS, TRAINERS AND DRIVERS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Chapter 5, Title 28, Delaware Code, by striking §530.
Section 2. Amend Chapter 5, Title 28, Delaware Code, by striking §555 and substituting in lieu thereof a new §555 as follows:
"§555. Tax on Pari-Mutuel and Totalizator Pools] Special Fund
(a) Every person engaged in the business of conducting a harness racing meet under this Chapter shall pay as a tax to this State an amount equal to .75% of the total contributions to all pari-mutuel and totalizator pools conducted or made on each racing day prior to January 1, 1981 on any and every racetrack licensed under this Chapter and on all races that day at such tracks during any such day when a pari-mutuel racing meet (not including day-time thoroughbred racing) is being conducted outside this State within seventy-five miles of such person's harness racing meet.
(b) Every person engaged in the business of conducting a harness racing meet under this Chapter shall pay as a tax to this State a percentage of the total contributions to all pari-mutuel and totalizator pools conducted or made on each racing day prior to January 1, 1981 on any and every racetrack licensed under this Chapter and on all races that day at such track during any such day when no pari-mutuel racing meet (not including day-time thoroughbred racing) is being conducted within seventy-five miles of such person's harness racing meet.
The percentage of such pari-mutuel and totalizator pools to be paid as such tax shall be as follows:
(1) .75% of the first $400,000 of daily contributions to such pools or any portion thereof; plus
(2) 3% of daily contributions to such pools in excess of $400,000 up to $600,000; plus
(3) 5.5% of daily contributions to such pools in excess of $600,000.
(c) On each racing day to which subsection (b) of this Section is applicable when the total contributions to all pari-mutuel and totalizator pools conducted or made at any racetrack licensed under this Chapter exceed $400,000, every person engaged in the business of conducting a racing meet under this Chapter shall pay as an additional tax to this State:
(1) Two percent of the total contributions to all parl-mutuel and totalizator pools conducted or made on each racing day on any and every racetrack licensed -tinder this Chapter where the patron is required to select two or more horses in a single race having a field of eight or less horses declared 'in to go' by the track Judges or where the patron is required to select two or more horses in more than one race where all of such races have a field of eight or less horses declared 'in to go' by the track fudges.
(2)
Four percent of the total contributions to all pari-mutuel and totalizator pools conducted or made on each racing day on any and every racetrack licensed under this Chapter where the patron is required to select two or more horses in a single race having a field of nine or more horses declared 'in to go' by the track judges or where the patron is required to select two or more horses in more than one race where either one or more of such races has a field of nine or more horses declared 'in toga' by the track judges.
(1) One-half of the odd cents of all redistributions to be made on pari-mutuel or totalizator pool contributions exceeding the sum equal to the lowest multiple of ten such odd cents to be calculated on the basis of each dollar wagered. If a minus pool is created, the break shall be to the lowest multiple of five.
(d) The State Treasurer shall deposit the money received pursuant to subsections (a), (b) and (c) of this section in the General Fund of this State. In addition, (except as hereinafter provided), every person engaged in the business of conducting a harness race meet under this Chapter shall pay an amount equal to I/2 of 1 percent of all contributions to all pari-mutuel and totalizator pools conducted or made on any and every racetrack licensed under this Chapter and every race at such track, and the State Treasurer shall deposit such amount to a Special fund called the 'Delaware Standardbred Development Fund.' All fees received pursuant to 5564 (b) and 5567 of this title shall also be deposited to said special fund. Said special fund shall be administered pursuant to Subchapter V of this Chapter.
(e) Where the total contributions to pari-mutuel and totalizator pools conducted or made at a racing meet or meets during any fiscal year of any person licensed under this Chapter commencing subsequent to 1978 average $300,000 or less per day during such fiscal year and the licensee conducting such meet or meets sustained a loss before taxes on income for such fiscal year, which loss shall be determined from a certificate from the licensees' independent public accountants and confirmed by the Delaware Harness Racing Commission, the licensee shall not be required to pay the additional amount set forth in subsection (d) of this section, for the meet or meets conducted in the fiscal year immediately following the fiscal year in which the loss occurred, to the extent of the loss sustained in the preceding year, nor shall the licensee be required to increase the base upon which purse money is computed to any amount greater than the base upon which the licensee would have computed the amount of purse money under the law in effect during the licensee's fiscal year ending in 1978.
(f) The tax payable under this section shall be computed daily and shall be paid by certified check on a weekly basis. Each check shall be transmitted by the licensee to the Secretary of Finance no later than Wednesday following the week for which the tax is due.. Such tax is imposed upon and payable by the licensee and shall not be taken into account in determining the amount of any pari-mutuel or totalizator pool which is available for distribution among the contributors to such pool."
Section 3. Amend Chapter 5, Title 28, Delaware Code, by striking S556 and substituting in lieu thereof a new §556 as follows:
"§556. Licensee's Commissions on Pari-Mutuel and Totalizator Pools
(a) The Commission shall authorize commissions pursuant to this subsection and subsections (b) and (c) of this section on pari-mutuel or totalizator pools to all licensees operating a racing meet pursuant to this Chapter. The commission shall be 18% of the total daily contributions to all parimutuel or totalizator pools conducted or made at the racing meet and at every race at the meet, plus all of the odd cents of all redistributions to be made on all pari-mutuel or totalizator pool contributions, exceeding the sum equal to the next lowest of ten, such odd cents to be calculated upon the basis of each dollar wagered.
(b) In addition to the commissions authorized by subsection (a) of this section, the Commission shall authorize as commissions to the licensee operating a racing meet pursuant to this Chapter 2% of the total contributions to all pari-mutuel and
totalizator pools conducted or made on each racing day on any and every racetrack licensed under this Chapter where the patron is required to select two or more horses in a single race having a field of eight or less horses declared 'in to go' by the track judges or where the patron is required to select two or more horses, in more than one race where all of such races have a field of eight or less horses declared 'in to go' by the track judges.
(c) In addition to the commissions authorized by subsections (a) and (b) of this section, the Commission shall authorize as commissions to the licensee operating a racing meet pursuant to this Chapter 7% of the total contributions to all pari-mutuel and totalizator pools conducted or made on each racing day on any and every racetrack licensed under this Chapter where the patron is required to select two or more horses in a single race having a field of nine or more horses declared 'in to go' by the track judges or where the patron is required to select two or more horses in more than one race where one or more of such races has a field of nine or more horses declared 'in to go' by the track judges."
Section 4. Amend Chapter 23, Title 30, Delaware Code, by adding a new section thereto to read as follows:
"§2305. Special Requirements for Harness Racing Meet Operators, Owners, Trainers and Drivers
(a) Definitions. For purposes of this Chapter, the following definitions shall apply:
(1) 'Harness racing meet operator' Includes every person conducting a harness racing meet within this State and who has been licensed in accordance with Chapter 5 of Title 28.
(2) 'Gross receipts' includes the total contributions to all pari-mutuel and totalizator pools conducted or made at any racetrack licensed under Chapter 5 of Title 28, as well as all amounts received for admission, parking, catering, sale of programs or any other source at any harness race meet conducted at such racetrack.
(3) 'Harness race horse owner, trainer or driver' shall mean those persons who have been licensed as such in accordance with Chapter 25 of Title 28.
(4) 'Person' includes an individual partnership, firm, cooperative, corporation or any association of persons acting individually or as a unit.
(b) License fee for harness horse racing meet operators. Every harness racing meet operator shall pay to the secretary of Finance, in lieu of any other license fees under this part, a license fee at the rate of 75/100 of one percent of the aggregate gross receipts paid to such operator in connection with any harness racing meet commencing after December 31, 1978, which license fee shall be payable monthly on or before the twentieth day of each month with respect to the aggregate gross receipts for the Immediately preceding month. The monthly returns shall be accompanied by a certified statement on such forms as the Department of Finance shall require in computing the license fee due; provided that gross receipts from all pari-mutuel and totalizator pools conducted or made at any racetrack licensed under Chapter 5, of Title 28, shall not be included if received prior to January 1,1981.
(c) License fees for harness race horse owners, trainers and drivers. Every harness race horse owner, trainer and driver shall be liable, in lieu of any other license fees under this part, for a license fee at the rate of 4/10 of one percent of the aggregate gross receipts paid to such person as purse money in connection with any harness racing meet conducted within this State. The harness racing meet operator licensed to conduct any such harness racing meet shall withhold a sum equal to the aggregate liability imposed under the preceding sentence with respect to the aggregate purse money paid to all harness race horse owners collectively during each month, and shall pay the amount thereof on or before the twentieth day of the immediately succeeding month. The monthly returns shall be accompanied
by a certified statement on such forms as the Department of Finance shall require in computing the license fee due."
Section 5. This act shall take effect for harness horse racing meetings commencing after December 31,1978.
Approved April 5,1979.