As part of the ongoing effort to renew the states ADW law, the Illinois Thoroughbred Horsemens Association put forward several alternative options for generating the revenue necessary to close the Illinois Racing Boards budget deficit and avoid draconian cuts to racing opportunities: 1) We encourage state lawmakers to consider tapping a portion of the recapture subsidy that compensates Arlington and other Illinois tracks for the loss in live handle related to simulcasting their races across the globe. In 2013 alone, Arlington will enjoy an estimated $4.1 million recapture subsidy - dollars that flow directly from horsemen purses at a rate of $46,000 a day. Less than a quarter of Arlingtons subsidy would be more than sufficient to cover the IRBs projected deficit. 2) State lawmakers may also consider raising the license fees that Illinois tracks and ADW companies pay to operate. Currently, tracks pay just $1,000 annually, plus $110 for each live day of racing, while ADW companies pay an application fee of $5,000, followed by a $2,500 renewal fee each subsequent year. 3) State lawmakers might also revisit the pari-mutuel tax credit, which permits tracks to reduce pari-mutuel tax payments and therefore deprives the IRB of revenue. Under current law, each track is entitled to reduce its pari-mutuel tax liability based on the amount it pays in real estate taxes. So while Arlington Parks gross pari-mutuel tax is significantly more than Hawthornes, Arlingtons net pari-mutuel tax - after the tax credit - is actually significantly less than Hawthornes. The total credit to Illinois tracks from the gross pari-mutuel taxes they owe for 2013 is in excess of $3 million. A 25% to 30% reduction in this tax credit would fund any budgetary shortfall of the IRB with ADW continued, and a repeal of this tax credit would allow the IRB to be fully funded for a full racing schedule regardless of whether ADW is renewed.
Posted on: Sun, 10 Nov 2013 17:37:15 +0000
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