Senate Bill 5610, State of Washington, 2025 Regular Session (Equine Industry Tax Credit)

Summary

Senate Bill 5610 of the State of Washington, 69th Legislature, 2025 Regular Session, by Senators Kauffman, Nobles, and Orwall, read first time 01/31/25 and referred to the Committee on Business, Financial Services & Trade. The title describes 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. Section 2 allows a credit against the tax under chapter 82.04 RCW for amounts paid in the prior state fiscal year to the federal horseracing integrity safety authority or the Washington horse racing commission. Section 3 directs the state treasurer to transfer an amount not to exceed $1,500,000 per fiscal year to the Washington equine industry federal regulatory account.

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Full text

     S-0854.1

                               SENATE BILL 5610


     State of Washington       69th Legislature         2025 Regular Session

     By Senators Kauffman, Nobles, and Orwall

     Read first time 01/31/25.      Referred    to   Committee   on   Business,
     Financial Services & Trade.




1        AN ACT Relating to establishing an equine industry tax credit,
2    allowing the horse racing commission to impose a fee, and using
3    equine industry sales tax revenues for federal regulatory compliance;
4    adding new sections to chapter 67.16 RCW; adding a new section to
5    chapter 82.04 RCW; creating a new section; providing an effective
6    date; and declaring an emergency.


 7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 8       NEW SECTION.   Sec. 1.   A new section is added to chapter 67.16
 9   RCW to read as follows:
10       The commission may impose fees, as the commission deems
11   reasonable and appropriate, in order to pay federal fees and be in
12   compliance with the horseracing integrity and safety act of 2020, 15
13   U.S.C. Sec. 3051 et seq., as amended. Revenues from the fees under
14   this section must be deposited in the Washington equine industry
15   federal regulatory account created in section 4 of this act. The
16   commission may adopt rules to implement this section.


17       NEW SECTION.   Sec. 2.  A new section is added to chapter 82.04
18   RCW to read as follows:
19       (1)(a) In computing the tax imposed under this chapter, a credit
20   is allowed for all amounts paid by a person licensed to conduct race
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 1   meets in this state in an amount equal to the amount paid by the
 2   person in the prior state fiscal year to:
 3       (i) The federal horseracing integrity safety authority; or
 4       (ii) The Washington horse racing commission.
 5       (b) Amounts paid are inclusive of any applicable true-up
 6   calculations or credits made, granted, or applied to an assessment
 7   imposed on the person by the federal horseracing integrity safety
 8   authority, for covered race meets in the state, pursuant to the
 9   horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et
10   seq., as amended.
11       (2) A person must have made the payment before claiming a credit
12   authorized under this section. The credit may be used against any tax
13   due under this chapter. The amount of the credit claimed for a
14   reporting period may not exceed the tax otherwise due under this
15   chapter for that reporting period. No refunds may be granted for any
16   unused credits.
17       (3) To claim a credit under this section, a person must
18   electronically file with the department all returns, forms, and any
19   other information required by the department, in an electronic format
20   as provided or approved by the department. Any return, form, or
21   information required to be filed in an electronic format under this
22   section is not filed until received by the department in electronic
23   format.
24       (4) No application is necessary for the tax credit. The person
25   must keep records necessary for the department to verify eligibility
26   under this section.
27       (5) The Washington horse racing commission must provide to the
28   department, upon request, such information as may be needed to verify
29   eligibility for credit under this section, including information
30   regarding payments received by the commission.
31       (6) Chapter 82.32 RCW applies to the administration of this
32   section.
33       (7) The definitions in this subsection apply throughout this
34   section unless the context clearly requires otherwise.
35       (a) "Race meet" has the same meaning as in RCW 67.16.010.
36       (b) "Returns" has the same meaning as "return" in RCW 82.32.050.


37       NEW SECTION.   Sec. 3.   A new section is added to chapter 67.16
38   RCW to read as follows:


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 1       (1) By July 1, 2026, and by July 1st of each year thereafter, the
 2   state treasurer, based upon information provided by the department of
 3   revenue, must transfer from the general fund to the Washington equine
 4   industry federal regulatory account created in section 4 of this act
 5   an amount not to exceed $1,500,000 per fiscal year directly derived
 6   from the imposition of state sales and use taxes charged or levied on
 7   the following equine products, services, or uses:
 8       (a) Equines;
 9       (b) Equine feed;
10       (c) Prescription drugs, over-the-counter drugs, or dietary
11   supplements dispensed or to be dispensed to equines;
12       (d) Equine tack which includes, but is not limited to, equipment
13   used to ride or care for an equine such as saddles, driving
14   harnesses, girths, cinches, bridles, martingales, halters, lead
15   ropes, whips, long reins, wraps, and other items used in handling and
16   caring for equines;
17       (e) Horse bedding and grooming supplies;
18       (f) Other taxable sales directly related to equine ownership,
19   riding, or boarding; and
20       (g) Sale of horses including equines claimed at class 1 and class
21   C regulated race meets.
22       (2) Following each biennium, the amount not to exceed in
23   subsection (1) of this section may be reviewed and increased based on
24   inflationary calculations as determined by the department of revenue
25   and federal fee amounts as determined by the Washington horse racing
26   commission.
27       (3) For purposes of this section, "equine" has the meaning
28   provided in RCW 4.24.530.

29       NEW SECTION.   Sec. 4.   A new section is added to chapter 67.16
30   RCW to read as follows:
31       The Washington equine industry federal regulatory account is
32   created in the state treasury. All receipts transferred to the
33   account pursuant to section 3 of this act must be deposited into the
34   account. Moneys in the account may be spent only after appropriation.
35   Expenditures from the account may be used only to pay fees charged by
36   the federal horseracing integrity safety authority pursuant to the
37   horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et
38   seq., as amended.


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1       NEW SECTION. Sec. 5.    RCW 82.32.805 and 82.32.808 do not apply
2   to section 2 of this act.


3       NEW SECTION.   Sec. 6.  This act is necessary for the immediate
4   preservation of the public peace, health, or safety, or support of
5   the state government and its existing public institutions, and takes
6   effect July 1, 2025.

                                --- END ---




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