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Can you summarize ALCA 45-49-151.14?
Racing Commission. > Tax due on pari-mutuel pools; distribution of contributions; capital improvement fund.
Short Summary
This legal document pertains to the tax due on pari-mutuel pools, the distribution of contributions, and the establishment of a capital improvement fund. Licensees conducting race meetings under this subpart are required to pay a tax on the total contributions to all pari-mutuel pools conducted on a licensed racetrack. The tax rate is eight percent until April 17, 1992, and seven percent thereafter. The commission of a licensee on a pari-mutuel pool is limited to 19 percent of the amount contributed to the pool, including the tax. Licensees may deduct an additional two percent commission from certain pari-mutuel betting pools. After deducting the tax, commissions, and state privilege tax, the remaining contributions to each pool are divided among and redistributed to the contributors betting on the winning dog. The redistribution amount for each winning bet is determined by dividing the total remaining in the pool by the number of bets placed on the winning dog. The licensee is entitled to retain one-half of the off cents on all redistributions, while the remaining one-half is paid to the racing commission as a breaks tax. The document also establishes a capital improvement fund, which is used for new buildings, permanent improvements, betterments, restoring property, improving facilities, and advertising and promotions by the licensee. The licensee is entitled to withdraw from the capital improvement fund an amount equal to the income taxes owed on funds deposited in the fund. The interest earned on the capital improvement fund benefits the licensee for capital improvements. The document further specifies the collection of admission tax from race attendees and the reporting requirements to the racing commission. No specific penalties are mentioned in this document.
Whom does it apply to?
Licensees conducting race meetings pursuant to this subpart.
What does it govern?
Tax due on pari-mutuel pools; distribution of contributions; capital improvement fund.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Alabama