CHAPTER 426

FORMERLY

HOUSE BILL NO. 970

AS AMENDED BY HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 3, TITLE 28, DELAWARE CODE, RELATING TO RACING DATES, RULES OF RACING, TAX ON ADMISSIONS, AND THE COMMISSIONS ON PARI-MUTUEL AND TOTALIZATOR POOLS AT HORSE RACING TRACKS.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Amend §322, Chapter 3, Title 28, Delaware Code by striking the number "65" as the same appears in subsection (c) of said section in its entirety and substituting in lieu thereof the number "75".

Section 2. Amend §326, Chapter 3, Title 28,

Delaware Code by inserting after the word "by" and before the word "the" as the same appear in lines 3 and 6 of said section the words "the Commission, or by".

Section 3. Amend §330, Chapter 3, Title 28, Delaware Code by striking subsection (a) thereof in its entirety and substituting in lieu thereof a new subsection (a) to read as follows:

"(a) Every person licensed to hold a racing meet within this State shall pay to the Commission a tax of 20 cents on each admission on each day of any such meet, excepting admissions of persons performing any duty or work in connection with the holding of the meet, admissions of spouses of jockeys, owners and trainers of horses participating in the meet and admissions of patrons not charged an admission or entrance fee by the licensee. The licensee may, if it desires, collect such amount from each ticket holder in addition to the amount or amounts charged for the ticket of admission."

Section 4. Amend §365, Chapter 3, Title 28, Delaware Code by striking said section in its entirety and substituting in lieu thereof a new §365 to read as follows:

"§365. Tax on pari-mutuel and totalizator pools.

(a) Every person engaged in the business of conducting a racing meet under this Chapter shall pay as a tax to this State a percentage of the total contributions to all pari-mutuel and totalizator pools conducted or made on any and every race track licensed under this Chapter and on every race at such track, plus one-half of the odd cents of all redistributions to be made on pari-mutuel or totalizator pool contributions exceeding the sum equal to the lowest multiple of 10, such odd cents to be calculated upon the basis of each dollar wagered provided, however, that if a minus pool is created, the licensee may break to the lowest multiple of five (5). The percentage of such pari-mutuel and totalizator pools to be paid as such tax shall be as follows:

(1) 2% of the first $500,000 of daily contributions to such pools or any portion thereof;

(0) 3% of the second $500,000 of daily contributions of such pools or any portion thereof;

(1) 4% of the third $500,000 of daily contributions to such pools or any portion thereof;

(2) 5010 of the fourth $500,000 of daily contributions to such pools or any portion thereof;

(3) 6070 of all daily contributions to such pools in excess of $2,000,000.

(b) In addition to the tax imposed under subsection (a) of this Section, every person engaged in the business of conducting a racing meet under this Chapter shall pay as a tax to this State 4% of the total contributions to all special pari-mutuel and totalizator pools conducted on each racing day on any and every race track licensed under this Chapter Special pari-mutuel and totalizator pool means a separate wagering pool in which an interest is represented by a single wager on more than two entries, and shall include, but not be limited to, tri-perfectas, trifectas, twin doubles, and big exactas.

(c) The tax imposed by subsections (a) and (b) of this Section shall be computed daily and shall be paid by certified check on a weekly basis. Each check shall be transmitted by the licensee to the Secretary of Finance no later than the Wednesday following the week for which the tax is due.

(d) On or before June 30, 1976, the licensee shall pay to the State as an additional tax a sum equal to the difference between (i) 5 percent of the total contributions to all pari-mutuel and totalizator pools conducted or made on every race theretofore run on any racing day for the period beginning January 1, 1976 and ending June 26, 1976, plus one-half of the odd cents of all redistributions made on all pari-mutuel and totalizator pool contributions for the said period beginning January 1, 1976 and ending June 26, 1976 exceeding the sum equal to the next lowest multiple of 10, such odd cents to be calculated on the basis of each dollar wagered, provided that if a minus pool is created, the licensee may break to the lowest multiple of 5, and (ii) the tax payable under subsections (a) and (b) of this Section for the period beginning January 1, 1976 and ending June 26, 1976.

() Not later than ten (10) working days following the end of a racing meet conducted under this Chapter, the licensee shall certify to the Commission the average total daily contributions made to all pari-mutuel and totalizator pools conducted during the meet. The "average total daily contribution" for a racing meet shall be computed by dividing the sum of all contributions made to each and every pari-mutuel and totalizator pool conducted during the meet by the total number of racing days conducted during the meet.

In the event that the average total daily contribution is greater than $900,000.00 but less than $1,000,000.00 the licensee shall pay to the State as an additional tax a sum equal to one-half the difference between (i) 5 percent of the total contributions to all pari-mutuel and totalizator pools conducted or made on every race theretofore run at the meet, plus one-half of the odd cents of all redistributions to be made on pari-mutuel or totalizator pool contributions exceeding the sum equal to the lowest multiple of 10, such odd cents to be calculated upon the basis of each dollar wagered provided, however, that if a minus pool is created, the licensee may break to the lowest multiple of 5, and (ii) the tax payable under subsections (a) and (b) of this section.

In the event that the average total daily contribution is greater than $1,000,000.00 the licensee shall pay to the State as an additional tax a sum equal to the difference between (i) 5 percent of the total contributions to all pari-mutuel and totalizator pools conducted or made on every race theretofore run at the meet, plus one-half of the odd cents of all redistributions to be made on pari-mutuel or totalizator pool contributions exceeding the sum equal to the lowest multiple of 10, such odd cents to be calculated upon the basis of each dollar wagered provided, however, that if a minus pool is created, the licensee may break to the lowest multiple of 5, and (ii) the tax payable under subsections (a) and (b) of this section.

The tax imposed by this subsection shall not be applicable to any racing meet or portion thereof conducted on or before June 26, 1976, and any "average total daily contribution" computed hereunder shall not include any portion of a racing meet conducted on or before June 26, 1976. The tax imposed by this subsection shall be paid to the Secretary of Finance by certified check within fifteen (15) working days following the end of each racing meet conducted under this Chapter."

Section 5. Amend §366, Chapter 3, Title 28, Delaware Code by striking said Section in its entirety and substituting in lieu thereof a new §366 to read as follows:

"§366. Licensee's commissions on pari-mutuel and totalizator pools.

(a) The Commission shall authorize as commissions on pari-mutuel and totalizator pools to the licensee operating a t acing meet under this Chapter, a percentage of the total contributions to all pari-mutuel and totalizator pools conducted or made at the racing meet and at every race or meeting, plus one-half of the odd cents of all redistributions to be made on all pari-mutuel and totalizator pool contributions exceeding the sum equal to the next lowest multiple of 10, such odd cents to be calculated on the basis of each dollar wagered. If a minus pool is created, the licensee may break to the lowest multiple of 5. The percentage of such pari-mutuel and totalizator pools which shall be authorized as commissions shall be as follows:

(1) 15% of the first $500,000 of daily contributions to such pools or any portion thereof;

(2) 14% of the second $500,000 of daily contributions to such pools or any portion thereof;

(3) 13010 of the third $500,000 of daily contributions to such pools or any portion thereof;

(4) 12% of the fourth $500,000 of daily contributions to such pools or any portion thereof;

(b) In addition to the other commissions allowed by this Section, every person engaged in the business of conducting a racing meet under this Chapter shall receive as a commission 2% of the total contributions to all dual pari-mutuel and totalizator pools conducted on each racing day on any and every race track licensed under this Chapter. Dual pari-mutuel and totalizator pool means a separate wagering pool in which an interest is represented by a single wager on two entries, and shall include, but not be limited to, daily doubles, exactas, quinellas, and perfectas.

(c) In addition to the other commissions allowed by this Section, every person engaged in the business of conducting a racing meet under this Chapter shall receive as a commission 4% of the total contributions to all special pari-mutuel and totalizator pools conducted on each racing day on any and every race track licensed under this Chapter. Special pari-mutuel and totalizator pools means a separate wagering pool in which an interest is represented by a single wager on more than two entries, and shall include, but not be limited to, tri-perfectas, trifectas, twin doubles, and big exactas."

Section 6. This Act shall take effect immediately

upon the Governor's signature but Sections 4 and 5 thereof shall continue in effect until December 31, 1976 only.

Approved May 28, 1976