AL Code § 45-49-151.14 (2021)
2021 Code of Alabama|Title 45 - Local Laws.|Chapter 49 - Mobile County.|Article 15 - Gambling.|Part 2 - Racing Commission and Racetracks.|Division 1 - Racing Commission.|Section 45-49-151.14 - Tax Due on Pari-Mutuel Pools; Distribution of Contributions; Capital Improvement Fund.

Section 45-49-151.14Tax due on pari-mutuel pools; distribution of contributions; capital improvement fund. (a) Every licensee conducting race meetings pursuant to this subpart shall pay to the racing commission for its use, a tax on the total contributions to all pari-mutuel pools conducted or made on a racetrack licensed under this subpart in an amount equal to eight percent until April 17, 1992, and seven percent thereafter. Except as otherwise provided in this subpart, the commission of a licensee on a pari-mutuel pool shall not exceed 19 percent of the amount contributed to the pari-mutuel pool, including the tax provided in this section. In addition to the 19 percent commission authorized to be withheld from pari-mutuel pools, the licensee may deduct an additional two percent commission from all pari-mutuel betting pools in which the bettors are required to select three or more dogs. After the deduction of the tax percentages for the use of the racing commission, the percentage commissions of the licensee, and the state privilege tax, the remainder of the total contributions to each pool shall be divided among and redistributed to the contributors to the pools betting on the winning dog. The amount of each redistribution for each winning bet placed shall be determined by dividing the total amount remaining in the pool after the deductions by the number of bets placed on the winning dog. Each redistribution shall be made in a sum equal to the next lowest multiple of 10. The licensee is entitled to retain one-half of the off cents on all redistributions to be known as the breaks to a dime. The remaining one-half of the breaks shall be paid to the racing commission for its use as a breaks tax. Under the pari-mutuel system of wagering, the licensee shall be permitted to provide separate pools for betting for win, place, and show and also a daily double pool, a quiniela pool, a double quiniela pool, and any other type of pari-mutuel betting permitted by the racing commission. Each pool shall be redistributed separately as provided. If there be no ticket bet on the winning dog, the entire pool shall be divided among the holders of tickets on the dog running next in line until the pool has been redistributed to the contributors. The licensee shall use a totalizer machine to record the wagering and compute the odds. Rules and regulations governing the operation of each of the pools shall be set out in book form by the racing commission. Amounts due on outstanding unredeemed mutuel tickets, which represent the winning tickets not presented for payment within one year, shall be distributed 50 percent to the licensee and 50 percent to the racing commission. The licensee shall collect from each person who pays admission and attends the race meeting pursuant to this subpart, 15 percent of the established admission price or ten cents ($0.10), whichever sum is the greater, as an admission tax. Licensees shall make payment of the taxes to the racing commission every seventh calendar day of each and every race meeting, which payment shall be accompanied by a report on the races and other information as the racing commission may require. (b) There is created a capital improvement fund. The capital improvement fund shall be established by the county treasurer from monies not otherwise distributed as defined pursuant to Section 45-49-151.17. For the purpose of this subpart, capital improvements shall mean the following: (1) The amount paid out for new buildings or for permanent improvements or betterments made to improve the facilities utilized by the licensee for the conduct of its race meetings. (2) The amount expended in restoring property at the facility or in improving a part of the facility which results in the addition or replacement of a fixed asset. (3) The amount expended for advertising and promotions by the licensee. Not more than five hundred thousand dollars ($500,000) may be expended for advertising or promotion out of the capital improvement fund. (c) The licensee is entitled to withdraw from the capital improvement fund established in subsection (a) and subsection (b) an amount equal to the income taxes owed by the licensee or its individual owners on funds deposited in the capital improvement fund certified by the licensee or owners to the racing commission. (d) The interest earned on the capital improvement fund shall accrue to the benefit of the licensee to be used for capital improvements pursuant to subsection (a) and subsection (b).  (Act 86-416, p. 612, § 15; Act 86-545, p. 1082, § 15; Act 92-105, p. 169, § 1; Act 93-303, p. 440, § 1.)