Date Requested:April 04, 2005
Time Requested:10:15 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1459 Comm. Sub. Engrossed SB442
CBD Subject: Table Games at Licensed Horse & Dog Trac
FUND(S)
General Revenue Fund & Racetrack Table Games Fund
Sources of Revenue
General Fund,Other Fund Racetrack Table Games
Legislation creates:
A New Program,A New Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to authorize table games at up to four licensed horse and dog racetracks upon approval by the voters of the county where the racetrack and wagers are located at a general, primary or special election.
    
    This bill does not expressly apply to the State Tax Department, although some of the taxes administered by the Department are affected. The bill imposes a 23.5% tax on a licensee’s adjusted gross receipts from the operation of table games. This tax is to be submitted weekly to the Lottery Commission for deposit in the Racetrack Table Games Fund. The General Revenue Fund will receive 86% of the Racetrack Table Games Fund, 5% of which is for the Regional Jail Authority, after the Lottery Commission’s expense allowance.
    
    The 23.5% tax on table games is in lieu of all other State and local taxes and fees, except for property taxes. As a result, the Consumers Sales and Use Tax is not applicable to a licensee’s gross receipts from table games or its purchase of gaming equipment, supplies or services directly used in the operation of table games. There would be no revenue loss associated with this exemption since there are no table games currently being conducted in the State.
    
    There would be no administrative costs to the Tax Department from the passage of this bill.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    This bill does not expressly apply to the State Tax Department, although some of the taxes administered by the Department are affected. The bill imposes a 23.5% tax on a licensee’s adjusted gross receipts from the operation of table games. This tax is to be submitted weekly to the Lottery Commission for deposit in the Racetrack Table Games Fund. The General Revenue Fund will receive 86% of the Racetrack Table Games Fund, 5% of which is for the Regional Jail Authority, after the Lottery Commission’s expense allowance.
    
    The 23.5% tax on table games is in lieu of all other State and local taxes and fees, except for property taxes. As a result, the Consumers Sales and Use Tax is not applicable to a licensee’s gross receipts from table games or its purchase of gaming equipment, supplies or services directly used in the operation of table games. There would be no revenue loss associated with this exemption since there are no table games currently being conducted in the State.
    
    There would be no administrative costs to the Tax Department from the passage of this bill.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us