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F I S C A L I M P A C T R E P O R T
SPONSOR B. Lujan
ORIGINAL DATE
LAST UPDATED
1/29/08
2/05/08 HB 484/aHTRC
SHORT TITLE New Gaming Tax Rate on Certain Racetracks
SB
ANALYST Schardin
REVENUE (dollars in thousands)
Estimated Revenue
Recurring
or Non-Rec
Fund
Affected
FY08
FY09
FY10
($1,381.0) Recurring General Fund
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department (TRD)
Responses Received From
Gaming Control Board (GCB)
SUMMARY
Synopsis of HTRC Amendment
The House Taxation and Revenue Committee amendment to House Bill 484 amends the bill’s
effective date to be July 1, 2009 rather than January 1, 2009. This amendment erases the bill’s
fiscal impact in FY09.
Synopsis of Original Bill
House Bill 484 would allow a lower gaming excise tax rate to be imposed on a racetrack casino
with net win less than $14 million in the preceding calendar year. The only racetrack casino
expected to qualify for this preferential tax rate is Ruidoso Downs.
The effective date of the provisions of the original bill is January 1, 2009.
FISCAL IMPLICATIONS
Net win for Ruidoso Downs is expected to be $8.6 million in FY10. Taxed at the current rate of
26 percent, Ruidoso Downs is currently expected to pay $2.2 million in gaming excise tax in
FY10.