Senate Bill Report — SB 5610
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2025-02-06
- Case
- 2025 02 06 A32664 D277905 Bill Report 5610 Sba Bft 25
Summary
A Senate Bill Report on SB 5610, as of February 4, 2025, prepared by non-partisan staff of the Senate Committee on Business, Financial Services & Trade, listing committee activity on February 6, 2025. The bill, sponsored by Senators Kauffman, Nobles and Orwall, would create a tax credit for payments to the Federal Horseracing Integrity Safety Authority or the Washington Horse Racing Commission and let the Commission impose fees to comply with the Horseracing Integrity and Safety Act of 2020. The background describes the Commission, parimutuel tax rates of 1.3 percent and 1.803 percent, and $500 and $200 daily race fees. Beginning July 1, 2026, up to $1.5 million a year from equine sales and use taxes would go to a new Washington Equine Industry Federal Regulatory Account; the bill takes effect July 1, 2025.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
SENATE BILL REPORT
SB 5610
As of February 4, 2025
Title: An act relating to establishing an equine industry tax credit, allowing the horse racing
commission to impose a fee, and using equine industry sales tax revenues for federal
regulatory compliance.
Brief Description: Establishing an equine industry tax credit, allowing the horse racing
commission to impose a fee, and using equine industry sales tax revenues for federal
regulatory compliance.
Sponsors: Senators Kauffman, Nobles and Orwall.
Brief History:
Committee Activity: Business, Financial Services & Trade: 2/06/25.
Brief Summary of Bill
• Creates a tax credit equal to the amount a person pays to the Federal
Horseracing Integrity Safety Authority or the Washington Horse Racing
Commission.
• Creates an annual transfer of an amount not to exceed $1.5 million from
the general fund to the newly created Washington Equine Industry
Federal Regulatory Account.
• Funds from the imposition of state sales and taxes on equine products,
services, or uses would be the source of state funds for the transfer into
the Washington Equine Industry Federal Regulatory Account.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: Clint McCarthy (786-7319)
Background: Washington State Horse Racing Commission. The Washington Horse
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SB 5610
Racing Commission (Commission) is responsible for licensing, regulating, and supervising
all race meets held in Washington where the parimutuel system of betting is used. The
Commission is also responsible for inspecting each race course in the state at least once a
year.
Betting or wagering on a horse race is lawful in Washington only if it is by the parimutuel
method. The parimutuel method is a wagering system in which the bets of a particular type
are pooled, taxes and commissions are removed, and payoffs are calculated by sharing the
pool among all of the winning bets. Licensees that operate race meets must withhold and
pay to the Commission daily, for each authorized day of parimutuel wagering, a parimutuel
tax that is a percentage of all the licensees' daily gross receipts from the licensees' in-state
parimutuel machines.
The receipts from the parimutuel tax must be deposited in the Washington Horse Racing
Commission Operating Account (Account), in addition to any gifts, grants, or endowments
the Commission receives. The Commission, or the Commission's designee, may authorize
expenditures from the Account. Moneys in the Account must be used for the Commission's
operating expenses, except as otherwise required in the terms of a gift, grant, or endowment.
Sums paid to the Commission, including license fees, but excluding licensee withholdings
paid to the Commission related to nonprofit race meets and Washington-bred-only horse
race payments, must be retained by the Commission for the payment of salaries to its
members, secretary, clerical and office expenses, and all other expenses incurred.
Parimutuel Tax. There is a tax on parimutuel betting in Washington State. The tax rate is
dependent on the gross receipts of the previous calendar year on in-state parimutuel
machines. The tax rate that must be withheld and paid to the Commission daily is either:
• 1.3 percent if gross receipts from the previous calendar year are greater than $50
million; or
• 1.803 percent if gross receipts from the previous calendar year are less than $50
million.
Gross receipts from the parimutuel tax are deposited into a non-appropriated Account for
the Commission’s operating expenses. If sufficient funds are available for operating, then
the Commission may spend up to $300,000 per fiscal year for the equine industry.
If a licensee is a nonprofit, and meets less than ten days a year, they are not subject to the
parimutuel tax.
Race Fee. Every person wanting to hold a horse race with betting and wagering must apply
to the Horse Racing Commission for a license. The licensee shall provide certain
information on the race meet. The number of days the horse race meets as well as the gross
receipts from parimutuel betting from the previous calendar year shall determine the daily
fee. Licensees which had gross receipts from parimutuel machines in excess of $50 million
Senate Bill Report -2- SB 5610
in the previous year must pay a $500 daily fee, those at or below $50 million must pay a
$200 daily fee. There must be at least six, but no more than 11, races per day for each
licensee subject to the daily fee.
Summary of Bill: The Commission is authorized to impose fees to pay federal fees and be
in compliance with the Horseracing Integrity and Safety Act of 2020.
Tax Credit. A tax credit is created for persons that conduct horseracing meets in the state on
payments to either the Federal Horseracing Integrity Safety Authority or the Commission.
The person must have made the payment before claiming the tax credit. In order to claim
the tax credit, the person must file all returns, forms, and any other necessary information
with the Department of Revenue. Filing for the tax credit does not require an application.
The Commission must be able to provide information to verify eligibility for the tax credit.
Funding Source for the Tax Credit. Beginning July 1, 2026, and July 1st of each year
thereafter, the Office of the State Treasurer must transfer an amount not to exceed $1.5
annually into the newly created Washington Equine Industry Federal Regulatory Account.
The amount deposited into the Washington Equine Industry Federal Regulatory Account
will be funded by the imposition of state sales and use taxes charged or levied on:
• equines;
• equine feed;
• prescription or over-the-counter drugs, or supplements dispensed to equines;
• equine tack;
• horse bedding and grooming supplies;
• other taxable sales directly related to equine ownership, riding or boarding; and
• the sale of horses including equines claimed at class 1 and class C regulated race
meets.
Each biennium, the $1.5 million limit may be reviewed and increased for inflation as
determined by the Department of Revenue and federal fee amounts as determined by the
Commission.
Appropriation: None.
Fiscal Note: Requested on February 3, 2025.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: The bill takes effect on July 1, 2025.
Senate Bill Report -3- SB 5610
File and source
- File
- 2025-02-06_a32664_d277905_bill-report-5610-sba-bft-25.pdf
- Size
- 9,906 bytes
- SHA-256
- 7a23702bf8d6b060986675f909023ead2be3a16b6dad5880ff5e6847b165eaf4
- Original
- app.leg.wa.gov