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SPONSOR: |
Stapleton |
DATE
TYPED: |
|
HB |
969 |
||
SHORT
TITLE: |
Racetrack
Gaming Revenue to State Fair |
SB |
|
||||
|
ANALYST: |
Smith |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
(8,150.0) |
(8,150.0) |
Recurring |
General Fund |
|
8,150.0 |
8,150.0 |
Recurring |
|
|
|
|
|
|
(Parenthesis
( ) Indicate Revenue Decreases)
Duplicates SB 866
Responses
Received From
Taxation
and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
House Bill 969 would
create a new distribution of 20% of the net receipts attributable to the gaming
tax paid by racetrack operators to the State Fair Commission for the purpose of
improving the facilities and grounds of the State Fair.
FISCAL
IMPLICATIONS
TRD
notes that the fiscal impact reflects 20% of the projected gaming tax revenue
attributable to racetrack operators in FY 2004.
Racetrack operators account for approximately 97% of total gaming tax
collections. The proposal could result
in a shift of approximately twice this amount if the issue described under
“Technical Issues” is not resolved.
TECHNICAL
ISSUES
TRD notes that the
proposal contains language providing for the new distribution in two different
places. The first is a new section of the Tax Administration Act that describes
a distribution equal to “twenty percent of the net receipts attributable to the
gaming tax paid by racetrack operator licensees…” Since there is no effective date on the bill,
this distribution would take effect
The second section
amends the Gaming Tax Act to include reference to a distribution “Beginning in
fiscal year 2004, twenty percent of the net receipts attributable to the gaming
tax paid by all racetrack gaming operator licensees in the prior fiscal year
shall be distributed annually…” (emphasis added). These two distributions do not refer to the
same revenue base. One is for revenue collected
in the current period, while the other refers to the prior year. This language could be read to create two
distributions.
OTHER
SUBSTANTIVE ISSUES
TRD points out that the proposal would distribute 20%
of the net revenue from racetrack gaming operations to the State Fair. However, only about 10% of this revenue is
attributable to the Albuquerque Downs Racetrack, located at the State
Fair.