CHAPTER 225

FORMERLY

HOUSE BILL NO. 647

AN ACT TO AMEND CHAPTER 5 OF TITLE 28, DELAWARE CODE, RELATING TO THE STATE TAX ON ADMISSIONS AND ON CONTRIBUTIONS TO PARI-MUTUEL AND TOTALIZATOR POOLS CONDUCTED OR MADE AT HARNESS RACING TRACKS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §530 (a) of Chapter 5, Title 28, Delaware Code, by striking said subsection in its entirety and substituting in lieu thereof a new §530 (a) to read as follows:

9530. Tax on Admissions; Inspection of Licensee's Records

(a) Everyy, person licensed to hold a harness racing meet within this State shall pay to the Department of Finance a tax of ten 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 spouse's of driver's, 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 2. Amend §555 of Chapter 5, Title 28, Delaware Code, by adding thereto a new paragraph to be designated as paragraph (d) to read as follows:

"(d) Where the total contributions to pari-mutuel and totalizator pools conducted or made at a racing meet or meets during any fiscal year ending subsequent to 1976 average $350,000 or less per day during such fiscal year and the licensee conducting such meet or meets sustained a loss before taxes on income of such fiscal year, which loss shall be determined from a certificate from the licensees' independent public accountants and confirmed by the Delaware Harness Racing Commission, the licensee shall be entitled to take a credit against the amount of tax on pari-mutuel and totalizator pools, as computed and payable under this Section, for the meet or meets conducted in the fiscal year immediately following the fiscal year in which the loss occurred, equal to the loss sustained in the preceding year. The term "fiscal year", as used in this subsection, shall mean the fiscal year of the licensee.

Notwithstanding any of the foregoing, however, each licensee under this subsection, averaging under $200,000.00 per racing day,

shall pay as a tax to this State a minimum of $1,000 for each racing day; each licensee under this subsection, averaging between $200,000.00 and $350,000.00 per racing day shall pay as a tax to this State a minimum of $2,000 for each racing day, regardless of the amount of the loss before taxes on income sustained in the preceding fiscal year. For purposes of this subsegtion, the licensees' loss for any given fiscal year shall be computed without any consideration to any credits received under this subsection."

Approved February 21, 1978.