Bill Text: IN SB0381 | 2010 | Regular Session | Introduced
Bill Title: Gaming revenues.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-01-12 - First reading: referred to Committee on Appropriations [SB0381 Detail]
Download: Indiana-2010-SB0381-Introduced.html
Citations Affected: IC 4-33; IC 4-35.
Synopsis: Gaming revenues. Provides that the riverboat wagering tax
and slot machine wagering tax are calculated using taxable receipts.
Defines "taxable" receipts for riverboats as adjusted gross receipts
minus amounts paid as promotional allowances. Defines taxable
receipts for racinos as adjusted gross receipts minus the sum of a
racino's promotional allowances and amounts paid to support the horse
racing industry, the county in which the casino is located, and the
French Lick casino. Reduces the amount of a racino's adjusted gross
receipts set aside for horse racing from 15% to 10%. Removes
adjustments for inflation from the $85,000,000 cap on the amounts set
aside for horse racing. Authorizes table games at racinos. Imposes a tax
on adjusted gross table game receipts at the rate of 25%. Requires the
taxes to be deposited in the state general fund. Provides that a licensee
is entitled to a refund of part of the slot machine wagering taxes
remitted between June 1, 2008 and October 1, 2009. Provides that a
refund is payable in 12 annual installments. Repeals an obsolete
definition. Makes an appropriation.
Effective: Upon passage; May 1, 2010; July 1, 2010.
January 12, 2010, read first time and referred to Committee on Appropriations.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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A BILL FOR AN ACT to amend the Indiana Code concerning
gaming and to make an appropriation.
(1) make a complimentary wager on a gambling game; or
(2) play a gambling game without consideration.
The term does not include any amount expended to provide a patron with complimentary lodging, meals, or merchandise.
(1) the total of a licensed owner's or an operating agent's adjusted gross receipts; minus
(2) the total value of the promotional allowances made by the licensed owner or operating agent.
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 1. (a) This section does
not apply to a riverboat that has implemented flexible scheduling under
IC 4-33-6-21.
(b) Subject to section 1.5(h) of this chapter, a tax is imposed on the
adjusted gross taxable receipts received from gambling games
authorized under this article at the rate of twenty-two and five-tenths
percent (22.5%) of the amount of the adjusted gross taxable receipts.
(c) The licensed owner shall remit the tax imposed by this chapter
to the department before the close of the business day following the day
the wagers are made.
(d) The department may require payment under this section to be
made by electronic funds transfer (as defined in IC 4-8.1-2-7(e)).
(e) If the department requires taxes to be remitted under this chapter
through electronic funds transfer, the department may allow the
licensed owner to file a monthly report to reconcile the amounts
remitted to the department.
(f) The department may allow taxes remitted under this section to
be reported on the same form used for taxes paid under IC 4-33-12.
(b) A graduated tax is imposed on the
(1) Fifteen percent (15%) of the first twenty-five million dollars ($25,000,000) of
(2) Twenty percent (20%) of the
(3) Twenty-five percent (25%) of the
(4) Thirty percent (30%) of the
exceeding one hundred fifty million dollars ($150,000,000)
received during the period beginning July 1 of each year and
ending June 30 of the following year.
(5) Thirty-five percent (35%) of all adjusted gross taxable
receipts in excess of one hundred fifty million dollars
($150,000,000) but not exceeding six hundred million dollars
($600,000,000) received during the period beginning July 1 of
each year and ending June 30 of the following year.
(6) Forty percent (40%) of all adjusted gross taxable receipts
exceeding six hundred million dollars ($600,000,000) received
during the period beginning July 1 of each year and ending June
30 of the following year.
(c) The licensed owner or operating agent shall remit the tax
imposed by this chapter to the department before the close of the
business day following the day the wagers are made.
(d) The department may require payment under this section to be
made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(e) If the department requires taxes to be remitted under this chapter
through electronic funds transfer, the department may allow the
licensed owner or operating agent to file a monthly report to reconcile
the amounts remitted to the department.
(f) The department may allow taxes remitted under this section to
be reported on the same form used for taxes paid under IC 4-33-12.
(g) If a riverboat implements flexible scheduling during any part of
a period beginning July 1 of each year and ending June 30 of the
following year, the tax rate imposed on the adjusted gross taxable
receipts received while the riverboat implements flexible scheduling
shall be computed as if the riverboat had engaged in flexible
scheduling during the entire period beginning July 1 of each year and
ending June 30 of the following year.
(h) If a riverboat:
(1) implements flexible scheduling during any part of a period
beginning July 1 of each year and ending June 30 of the following
year; and
(2) before the end of that period ceases to operate the riverboat
with flexible scheduling;
the riverboat shall continue to pay a wagering tax at the tax rates
imposed under subsection (b) until the end of that period as if the
riverboat had not ceased to conduct flexible scheduling.
(1) the total of all cash and property (including checks received by a licensee, whether collected or not) received by a licensee from
(2) the total of:
(A) all cash paid out to patrons as winnings for
(B) uncollectible
(i) a reasonable provision for uncollectible patron checks received from
(ii) two percent (2%) of the total of all sums, including checks, whether collected or not, less the amount paid out to patrons as winnings for
For purposes of this section, a counter or personal check that is invalid or unenforceable under this article is considered cash received by the licensee from
(1) A game played on a slot machine approved for wagering under this article by the commission.
(2) A table game approved by the commission under IC 4-35-7-15.
(1) make a complimentary wager on a gambling game; or
(2) play a gambling game without consideration.
The term does not include any amount expended to provide a patron with complimentary lodging, meals, or merchandise.
(1) Roulette wheel and table.
(2) Blackjack table.
(3) Crap table.
(4) Poker table.
(1) the total of a licensee's adjusted gross receipts; minus
(2) the sum of the following:
(A) The total of the amount of money paid by the licensee under:
(i) IC 4-35-7-12;
(ii) IC 4-35-8.5; and
(iii) IC 4-35-8.9.
(B) The total value of the promotional allowances made by the licensee.
(b) Except as provided in
(1) Five-tenths percent (0.5%) shall be transferred to horsemen's associations for equine promotion or welfare according to the ratios specified in subsection (e).
(2) Two and five-tenths percent (2.5%) shall be transferred to horsemen's associations for backside benevolence according to the ratios specified in subsection (e).
(3) Ninety-seven percent (97%) shall be distributed to promote horses and horse racing as provided in subsection (d).
(c) A horsemen's association shall expend the amounts distributed to the horsemen's association under subsection (b)(1) through (b)(2) for
a purpose promoting the equine industry or equine welfare or for a
benevolent purpose that the horsemen's association determines is in the
best interests of horse racing in Indiana for the breed represented by the
horsemen's association. Expenditures under this subsection are subject
to the regulatory requirements of subsection (f).
(d) A licensee shall distribute the amounts described in subsection
(b)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes as follows:
(A) Sixty percent (60%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the horsemen's
association representing thoroughbred owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen's association
representing thoroughbred owners and breeders.
(B) Forty percent (40%) to the breed development fund
established for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes as follows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the horsemen's
association representing standardbred owners and trainers.
(B) Fifty percent (50%) to the breed development fund
established for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's association
representing quarter horse owners and trainers.
(B) Thirty percent (30%) to the breed development fund
established for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatory
requirements of subsection (f).
(e) Money distributed under subsection (b)(1) and (b)(2) shall be
allocated as follows:
(1) Forty-six percent (46%) to the horsemen's association
representing thoroughbred owners and trainers.
(2) Forty-six percent (46%) to the horsemen's association
representing standardbred owners and trainers.
(3) Eight percent (8%) to the horsemen's association representing
quarter horse owners and trainers.
(f) Money distributed under this section may not be expended unless
the expenditure is for a purpose authorized in this section and is either
for a purpose promoting the equine industry or equine welfare or is for
a benevolent purpose that is in the best interests of horse racing in
Indiana or the necessary expenditures for the operations of the
horsemen's association required to implement and fulfill the purposes
of this section. The Indiana horse racing commission may review any
expenditure of money distributed under this section to ensure that the
requirements of this section are satisfied. The Indiana horse racing
commission shall adopt rules concerning the review and oversight of
money distributed under this section and shall adopt rules concerning
the enforcement of this section. The following apply to a horsemen's
association receiving a distribution of money under this section:
(1) The horsemen's association must annually file a report with
the Indiana horse racing commission concerning the use of the
money by the horsemen's association. The report must include
information as required by the commission.
(2) The horsemen's association must register with the Indiana
horse racing commission.
(g) The commission shall provide the Indiana horse racing
commission with the information necessary to enforce this section.
(h) The Indiana horse racing commission shall investigate any
complaint that a licensee has failed to comply with the horse racing
purse requirements set forth in this section. If, after notice and a
hearing, the Indiana horse racing commission finds that a licensee has
failed to comply with the purse requirements set forth in this section,
the Indiana horse racing commission may:
(1) issue a warning to the licensee;
(2) impose a civil penalty that may not exceed one million dollars
($1,000,000); or
(3) suspend a meeting permit issued under IC 4-31-5 to conduct
a pari-mutuel wagering horse racing meeting in Indiana.
(i) A civil penalty collected under this section must be deposited in
the state general fund.
(j) For a state fiscal year beginning after June 30, 2008, and ending
before July 1, 2009, 2010, the amount of money dedicated to the
purposes described in subsection (b) for a particular state fiscal year is
equal to the lesser of:
(1) fifteen ten percent (15%) (10%) of the licensee's adjusted
gross receipts for the state fiscal year; or
(2) eighty-five million dollars ($85,000,000).
If fifteen ten percent (15%) (10%) of a licensee's adjusted gross
receipts for the state fiscal year exceeds the amount specified in
subdivision (2), the licensee shall transfer the amount of the excess to
the commission for deposit in the state general fund. The licensee shall
adjust the transfers required under this section in the final month of the
state fiscal year to comply with the requirements of this subsection.
(k) For a state fiscal year beginning after June 30, 2009, the amount
of money dedicated to the purposes described in subsection (b) for a
particular state fiscal year is equal to the lesser of:
(1) fifteen percent (15%) of the licensee's adjusted gross receipts
for the state fiscal year; or
(2) the amount dedicated to the purposes described in subsection
(b) in the previous state fiscal year increased by a percentage that
does not exceed the percent of increase in the United States
Department of Labor Consumer Price Index during the year
preceding the year in which an increase is established.
If fifteen percent (15%) of a licensee's adjusted gross receipts for the
state fiscal year exceeds the amount specified in subdivision (2), the
licensee shall transfer the amount of the excess to the commission for
deposit in the state general fund. The licensee shall adjust the transfers
required under this section in the final month of the state fiscal year to
comply with the requirements of this subsection.
(b) The commission may not approve a plan that does not propose the installation of at least ninety (90) table games.
(c) After an approved plan is implemented, a licensee must obtain the approval of the commission before installing additional table games at the licensee's gaming facility.
(1) Twenty-five percent (25%) of the first one hundred million dollars ($100,000,000) of
during the period beginning July 1 of each year and ending June
30 of the following year.
(2) Thirty percent (30%) of the adjusted gross taxable receipts in
excess of one hundred million dollars ($100,000,000) but not
exceeding two hundred million dollars ($200,000,000) received
during the period beginning July 1 of each year and ending June
30 of the following year.
(3) Thirty-five percent (35%) of the adjusted gross taxable
receipts in excess of two hundred million dollars ($200,000,000)
received during the period beginning July 1 of each year and
ending June 30 of the following year.
(b) A licensee shall remit the tax imposed by this section to the
department before the close of the business day following the day the
wagers are made. Except as provided in subsection (c), a licensee
shall calculate the amount of taxable receipts received for a
particular day as follows:
STEP ONE: Determine the product of:
(A) the adjusted gross receipts received during the day;
multiplied by
(B) either of the following:
(i) Eighty-one hundredths (0.81) during a state fiscal
year ending before July 1, 2012.
(ii) Eighty-two hundredths (0.82) during a state fiscal
year beginning after June 30, 2012.
STEP TWO: Subtract the promotional allowances made
during the day from the STEP ONE product.
(c) This subsection applies to taxes remitted after a licensee pays
the maximum amount of county slot machine wagering fees
required by IC 4-35-8.5-1 for a particular state fiscal year. For
purposes of remitting taxes under this subsection, a licensee shall
calculate the amount of taxable receipts received for a particular
day as follows:
STEP ONE: Determine the product of:
(A) the adjusted gross receipts received during the day;
multiplied by
(B) either of the following:
(i) Eighty-four hundredths (0.84) during a state fiscal
year ending before July 1, 2012.
(ii) Eighty-five hundredths (0.85) during a state fiscal
year beginning after June 30, 2012.
STEP TWO: Subtract the promotional allowances made
during the day from the STEP ONE product.
(b) The amount of the refund provided by subsection (a) is equal to the difference between:
(1) the amount of taxes actually remitted by the licensee during the period described in subsection (a); minus
(2) the amount of taxes that would have been remitted by the licensee during the period if the tax imposed by this chapter had been calculated using the licensee's taxable receipts instead of the licensee's adjusted gross receipts.
(c) The department shall calculate the amount of the refund provided by subsection (a) to each licensee before August 15, 2010.
(d) A refund provided by subsection (a) is payable in twelve (12) annual installments on September 1 of 2010 and each year thereafter. The department shall pay each installment required by this subsection.
(e) There is annually appropriated to the department from the state general fund an amount sufficient to pay each annual installment of a refund provided by this section.
(f) This section expires October 1, 2021.
Chapter 8.2. Taxation of Table Games
Sec. 1. As used in this chapter, "adjusted gross table game receipts" means:
(1) the total of all cash and property (including checks received by a licensee, whether collected or not) received by a licensee from table games; minus
(2) the total of:
(A) all cash paid out to patrons as winnings for table
games; and
(B) uncollectible table game receivables, not to exceed the
lesser of:
(i) a reasonable provision for uncollectible patron checks
received from table games; or
(ii) two percent (2%) of the total of all sums, including
checks, whether collected or not, less the amount paid
out to patrons as winnings for table games.
For purposes of this section, a counter or personal check that is
invalid or unenforceable under this article is considered cash
received by the licensee from table games.
Sec. 2. A tax is imposed on the adjusted gross table game
receipts received under this article at the rate of twenty-five
percent (25%) of the amount of the adjusted gross table game
receipts.
Sec. 3. (a) The licensee shall remit the tax imposed by this
chapter to the department before the close of the business day
following the day the wagers are made.
(b) The payment of the tax imposed by this chapter must be on
a form prescribed by the department.
(c) The department may require payment under this section to
be made by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(d) If the department requires taxes to be remitted under this
chapter through electronic funds transfer, the department may
allow the licensee to file a monthly report to reconcile the amounts
remitted to the department.
Sec. 4. The department shall deposit the taxes collected under
this chapter in the state general fund.
(b) IC 4-35-7-12, as amended by this act, applies to state fiscal years beginning after June 30, 2010.
(c) IC 4-35-8.2, as added by this act, applies to wagers on table games made after April 30, 2010.
(d) This SECTION expires January 1, 2012.
