By Jacob Ogles
Cardrooms and horse tracks will see tax relief from a budget negotiated by appropriations leaders in the Florida Legislature.
A tax cuts package includes a 2% reduction in the pari-mutuel tax paid by cardrooms in the state. The state currently charges a 10% tax on cardrooms’ monthly receipts, but the state budget calls for a reduction to take effect in August.
Rep. Wyman Duggan, House Ways and Means Committee Chair, said the goal is to ensure cardrooms can still employ people across the state.
“Cardrooms, they tend to be decently large employers in their areas, and they tend to generate some property value on their property taxes,” the Jacksonville Republican said. “Think about cardrooms you have been to. They are larger in size, making them a good property tax provider in communities.”
And just because of rules on short shifts for employees dealing the cards, such cardrooms tend to employ a significant number of employees, according to Duggan.
The cut in tax rates comes at a cost to the state. Just the 2% reduction will cost $2.5 million to the state’s recurring general revenue next fiscal year.
And that’s not the only cut to pari-mutuel taxes. The Legislature also wants to eliminate slot licensing fees for facilities racing thoroughbred horses, and to clarify live racing requirements to apply a 0.5% tax rate on intertrack wagering more widely. Both of those changes provided savings for tracks but had a minimal impact on overall general revenues.
The state assesses a per-handle tax with facilities that allow wagering on horse races, but that tax is much lower, 0.5% instead of 2.5%, for thoroughbred tracks located more than 35 miles from host tracks.
Rep. Lawrence McClure, Budget Committee Chair, said the goal for lawmakers in the House this year, when it came to the thoroughbred industry, was to help venues across the state.
“We just want to find ways to help the racing industry, and we focused on the venue,” the Dover Republican said. “Without the venue, we don’t have an industry at all, and we believe in tax cuts. Fee cuts are great tools.”
Along those lines, the budget also calls for a $5-million distribution from the Florida Agricultural Promotional Campaign Trust Fund to promote the Florida horse industry directly. But this year, instead of going to the Florida Thoroughbred Breeders Association, $1 million will go to Tampa Bay Downs while $4 million goes to the Gulfstream Park Racing Association.
McClure said his family, like many involved in agriculture, has been involved in raising horses for racing for generations. He said the state needs to take proactive efforts to stabilize the industry, and that requires the Legislature to ensure venues can operate.
Both Duggan and dismissed notions that these steps would incentivize more gambling in Florida. The cardrooms and tracks most impacted have been in operation for decades.
“Candidly,” Duggan said, “I don’t think any person regularly gambling or thinking about gambling at one of these facilities makes their decision based on its incremental tax rate.”
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