102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4601

 

Introduced 1/21/2022, by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 5/27  from Ch. 8, par. 37-27
230 ILCS 5/28.1
230 ILCS 40/75

    Amends the Illinois Horse Racing Act of 1975. Provides that certain pari-mutuel taxes shall be remitted to the Illinois Racing Board (currently, the Department of Revenue) for deposit into the Horse Racing Fund. Amends the Video Gaming Act. Provides that moneys in the Local Government Video Gaming Distributive Fund shall be allocated by the Illinois Gaming Board (currently, the Department of Revenue). Effective January 1, 2023.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4601LRB102 23979 HLH 33184 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Horse Racing Act of 1975 is
5amended by changing Sections 27 and 28.1 as follows:
 
6    (230 ILCS 5/27)  (from Ch. 8, par. 37-27)
7    Sec. 27. (a) In addition to the organization license fee
8provided by this Act, until January 1, 2000, a graduated
9privilege tax is hereby imposed for conducting the pari-mutuel
10system of wagering permitted under this Act. Until January 1,
112000, except as provided in subsection (g) of Section 27 of
12this Act, all of the breakage of each racing day held by any
13licensee in the State shall be paid to the State. Until January
141, 2000, such daily graduated privilege tax shall be paid by
15the licensee from the amount permitted to be retained under
16this Act. Until January 1, 2000, each day's graduated
17privilege tax, breakage, and Horse Racing Tax Allocation funds
18shall be remitted to the Department of Revenue within 48 hours
19after the close of the racing day upon which it is assessed or
20within such other time as the Board prescribes. The privilege
21tax hereby imposed, until January 1, 2000, shall be a flat tax
22at the rate of 2% of the daily pari-mutuel handle except as
23provided in Section 27.1.

 

 

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1    In addition, every organization licensee, except as
2provided in Section 27.1 of this Act, which conducts multiple
3wagering shall pay, until January 1, 2000, as a privilege tax
4on multiple wagers an amount equal to 1.25% of all moneys
5wagered each day on such multiple wagers, plus an additional
6amount equal to 3.5% of the amount wagered each day on any
7other multiple wager which involves a single betting interest
8on 3 or more horses. The licensee shall remit the amount of
9such taxes to the Department of Revenue within 48 hours after
10the close of the racing day on which it is assessed or within
11such other time as the Board prescribes.
12    This subsection (a) shall be inoperative and of no force
13and effect on and after January 1, 2000.
14    (a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
15at the rate of 1.5% of the daily pari-mutuel handle is imposed
16at all pari-mutuel wagering facilities and on advance deposit
17wagering from a location other than a wagering facility,
18except as otherwise provided for in this subsection (a-5). In
19addition to the pari-mutuel tax imposed on advance deposit
20wagering pursuant to this subsection (a-5), beginning on
21August 24, 2012 (the effective date of Public Act 97-1060), an
22additional pari-mutuel tax at the rate of 0.25% shall be
23imposed on advance deposit wagering. Until August 25, 2012,
24the additional 0.25% pari-mutuel tax imposed on advance
25deposit wagering by Public Act 96-972 shall be deposited into
26the Quarter Horse Purse Fund, which shall be created as a

 

 

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1non-appropriated trust fund administered by the Board for
2grants to thoroughbred organization licensees for payment of
3purses for quarter horse races conducted by the organization
4licensee. Beginning on August 26, 2012, the additional 0.25%
5pari-mutuel tax imposed on advance deposit wagering shall be
6deposited into the Standardbred Purse Fund, which shall be
7created as a non-appropriated trust fund administered by the
8Board, for grants to the standardbred organization licensees
9for payment of purses for standardbred horse races conducted
10by the organization licensee. Thoroughbred organization
11licensees may petition the Board to conduct quarter horse
12racing and receive purse grants from the Quarter Horse Purse
13Fund. The Board shall have complete discretion in distributing
14the Quarter Horse Purse Fund to the petitioning organization
15licensees. Beginning on July 26, 2010 (the effective date of
16Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
17the daily pari-mutuel handle is imposed at a pari-mutuel
18facility whose license is derived from a track located in a
19county that borders the Mississippi River and conducted live
20racing in the previous year. The pari-mutuel tax imposed by
21this subsection (a-5) shall be remitted to the Board
22Department of Revenue within 48 hours after the close of the
23racing day upon which it is assessed or within such other time
24as the Board prescribes.
25    (a-10) Beginning on the date when an organization licensee
26begins conducting gaming pursuant to an organization gaming

 

 

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1license, the following pari-mutuel tax is imposed upon an
2organization licensee on Illinois races at the licensee's
3racetrack:
4        1.5% of the pari-mutuel handle at or below the average
5    daily pari-mutuel handle for 2011.
6        2% of the pari-mutuel handle above the average daily
7    pari-mutuel handle for 2011 up to 125% of the average
8    daily pari-mutuel handle for 2011.
9        2.5% of the pari-mutuel handle 125% or more above the
10    average daily pari-mutuel handle for 2011 up to 150% of
11    the average daily pari-mutuel handle for 2011.
12        3% of the pari-mutuel handle 150% or more above the
13    average daily pari-mutuel handle for 2011 up to 175% of
14    the average daily pari-mutuel handle for 2011.
15        3.5% of the pari-mutuel handle 175% or more above the
16    average daily pari-mutuel handle for 2011.
17    The pari-mutuel tax imposed by this subsection (a-10)
18shall be remitted to the Board within 48 hours after the close
19of the racing day upon which it is assessed or within such
20other time as the Board prescribes.
21    (b) On or before December 31, 1999, in the event that any
22organization licensee conducts 2 separate programs of races on
23any day, each such program shall be considered a separate
24racing day for purposes of determining the daily handle and
25computing the privilege tax on such daily handle as provided
26in subsection (a) of this Section.

 

 

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1    (c) Licensees shall at all times keep accurate books and
2records of all monies wagered on each day of a race meeting and
3of the taxes paid to the Board Department of Revenue under the
4provisions of this Section. The Board or its duly authorized
5representative or representatives shall at all reasonable
6times have access to such records for the purpose of examining
7and checking the same and ascertaining whether the proper
8amount of taxes is being paid as provided. The Board shall
9require verified reports and a statement of the total of all
10monies wagered daily at each wagering facility upon which the
11taxes are assessed and may prescribe forms upon which such
12reports and statement shall be made.
13    (d) Before a license is issued or re-issued, the licensee
14shall post a bond in the sum of $500,000 to the State of
15Illinois. The bond shall be used to guarantee that the
16licensee faithfully makes the payments, keeps the books and
17records, makes reports, and conducts games of chance in
18conformity with this Act and the rules adopted by the Board.
19The bond shall not be canceled by a surety on less than 30
20days' notice in writing to the Board. If a bond is canceled and
21the licensee fails to file a new bond with the Board in the
22required amount on or before the effective date of
23cancellation, the licensee's license shall be revoked. The
24total and aggregate liability of the surety on the bond is
25limited to the amount specified in the bond.
26    (e) No other license fee, privilege tax, excise tax, or

 

 

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1racing fee, except as provided in this Act, shall be assessed
2or collected from any such licensee by the State.
3    (f) No other license fee, privilege tax, excise tax or
4racing fee shall be assessed or collected from any such
5licensee by units of local government except as provided in
6paragraph 10.1 of subsection (h) and subsection (f) of Section
726 of this Act. However, any municipality that has a Board
8licensed horse race meeting at a race track wholly within its
9corporate boundaries or a township that has a Board licensed
10horse race meeting at a race track wholly within the
11unincorporated area of the township may charge a local
12amusement tax not to exceed 10¢ per admission to such horse
13race meeting by the enactment of an ordinance. However, any
14municipality or county that has a Board licensed inter-track
15wagering location facility wholly within its corporate
16boundaries may each impose an admission fee not to exceed
17$1.00 per admission to such inter-track wagering location
18facility, so that a total of not more than $2.00 per admission
19may be imposed. Except as provided in subparagraph (g) of
20Section 27 of this Act, the inter-track wagering location
21licensee shall collect any and all such fees. Inter-track
22wagering location licensees must pay the admission fees
23required under this subsection (f) to the municipality and
24county no later than the 20th of the month following the month
25such admission fees were imposed.
26    (g) Notwithstanding any provision in this Act to the

 

 

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1contrary, if in any calendar year the total taxes and fees from
2wagering on live racing and from inter-track wagering required
3to be collected from licensees and distributed under this Act
4to all State and local governmental authorities exceeds the
5amount of such taxes and fees distributed to each State and
6local governmental authority to which each State and local
7governmental authority was entitled under this Act for
8calendar year 1994, then the first $11 million of that excess
9amount shall be allocated at the earliest possible date for
10distribution as purse money for the succeeding calendar year.
11Upon reaching the 1994 level, and until the excess amount of
12taxes and fees exceeds $11 million, the Board shall direct all
13licensees to cease paying the subject taxes and fees and the
14Board shall direct all licensees to allocate any such excess
15amount for purses as follows:
16        (i) the excess amount shall be initially divided
17    between thoroughbred and standardbred purses based on the
18    thoroughbred's and standardbred's respective percentages
19    of total Illinois live wagering in calendar year 1994;
20        (ii) each thoroughbred and standardbred organization
21    licensee issued an organization licensee in that
22    succeeding allocation year shall be allocated an amount
23    equal to the product of its percentage of total Illinois
24    live thoroughbred or standardbred wagering in calendar
25    year 1994 (the total to be determined based on the sum of
26    1994 on-track wagering for all organization licensees

 

 

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1    issued organization licenses in both the allocation year
2    and the preceding year) multiplied by the total amount
3    allocated for standardbred or thoroughbred purses,
4    provided that the first $1,500,000 of the amount allocated
5    to standardbred purses under item (i) shall be allocated
6    to the Department of Agriculture to be expended with the
7    assistance and advice of the Illinois Standardbred
8    Breeders Funds Advisory Board for the purposes listed in
9    subsection (g) of Section 31 of this Act, before the
10    amount allocated to standardbred purses under item (i) is
11    allocated to standardbred organization licensees in the
12    succeeding allocation year.
13    To the extent the excess amount of taxes and fees to be
14collected and distributed to State and local governmental
15authorities exceeds $11 million, that excess amount shall be
16collected and distributed to State and local authorities as
17provided for under this Act.
18(Source: P.A. 101-31, eff. 6-28-19; 101-52, eff. 7-12-19;
19102-558, eff. 8-20-21.)
 
20    (230 ILCS 5/28.1)
21    Sec. 28.1. Payments.
22    (a) Beginning on January 1, 2000, moneys collected by the
23Department of Revenue and the Racing Board pursuant to Section
2426 or Section 27 of this Act shall be deposited into the Horse
25Racing Fund, which is hereby created as a special fund in the

 

 

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1State Treasury.
2    (b) Appropriations, as approved by the General Assembly,
3may be made from the Horse Racing Fund to the Board to pay the
4salaries of the Board members, secretary, stewards, directors
5of mutuels, veterinarians, representatives, accountants,
6clerks, stenographers, inspectors and other employees of the
7Board, and all expenses of the Board incident to the
8administration of this Act, including, but not limited to, all
9expenses and salaries incident to the taking of saliva and
10urine samples in accordance with the rules and regulations of
11the Board.
12    (c) (Blank).
13    (d) Beginning January 1, 2000, payments to all programs in
14existence on the effective date of this amendatory Act of 1999
15that are identified in Sections 26(c), 26(f), 26(h)(11)(C),
16and 28, subsections (a), (b), (c), (d), (e), (f), (g), and (h)
17of Section 30, and subsections (a), (b), (c), (d), (e), (f),
18(g), and (h) of Section 31 shall be made from the General
19Revenue Fund at the funding levels determined by amounts paid
20under this Act in calendar year 1998. Beginning on the
21effective date of this amendatory Act of the 93rd General
22Assembly, payments to the Peoria Park District shall be made
23from the General Revenue Fund at the funding level determined
24by amounts paid to that park district for museum purposes
25under this Act in calendar year 1994.
26    If an inter-track wagering location licensee's facility

 

 

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1changes its location, then the payments associated with that
2facility under this subsection (d) for museum purposes shall
3be paid to the park district in the area where the facility
4relocates, and the payments shall be used for museum purposes.
5If the facility does not relocate to a park district, then the
6payments shall be paid to the taxing district that is
7responsible for park or museum expenditures.
8    (e) Beginning July 1, 2006, the payment authorized under
9subsection (d) to museums and aquariums located in park
10districts of over 500,000 population shall be paid to museums,
11aquariums, and zoos in amounts determined by Museums in the
12Park, an association of museums, aquariums, and zoos located
13on Chicago Park District property.
14    (f) Beginning July 1, 2007, the Children's Discovery
15Museum in Normal, Illinois shall receive payments from the
16General Revenue Fund at the funding level determined by the
17amounts paid to the Miller Park Zoo in Bloomington, Illinois
18under this Section in calendar year 2006.
19    (g) On August 31, 2021, after subtracting all lapse period
20spending from the June 30 balance of the prior fiscal year, the
21Comptroller shall transfer to the Horse Racing Purse Equity
22Fund 50% of the balance within the Horse Racing Fund.
23(Source: P.A. 102-16, eff. 6-17-21.)
 
24    Section 10. The Video Gaming Act is amended by changing
25Section 75 as follows:
 

 

 

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1    (230 ILCS 40/75)
2    Sec. 75. Revenue sharing; Local Government Video Gaming
3Distributive Fund.
4    (a) As soon as may be after the first day of each month,
5the Illinois Gaming Board Department of Revenue shall allocate
6among those municipalities and counties of this State that
7have not prohibited video gaming pursuant to Section 27 or
8Section 70 the amount available in the Local Government Video
9Gaming Distributive Fund, a special fund in the State
10Treasury, as provided in Section 60. The Board Department
11shall then certify such allocations to the State Comptroller,
12who shall pay over to those eligible municipalities and
13counties the respective amounts allocated to them. The amount
14of such funds allocable to each such municipality and county
15shall be in proportion to the tax revenue generated from video
16gaming within the eligible municipality or county compared to
17the tax revenue generated from video gaming Statewide.
18    (b) The amounts allocated and paid to a municipality or
19county of this State pursuant to the provisions of this
20Section may be used for any general corporate purpose
21authorized for that municipality or county.
22    (c) Upon determination by the Board Department that an
23amount has been paid pursuant to this Section in excess of the
24amount to which the county or municipality receiving such
25payment was entitled, the county or municipality shall, upon

 

 

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1demand by the Board Department, repay such amount. If such
2repayment is not made within a reasonable time, the Board
3Department shall withhold from future payments an amount equal
4to such overpayment. The Board Department shall redistribute
5the amount of such payment to the county or municipality
6entitled thereto.
7(Source: P.A. 96-34, eff. 7-13-09.)
 
8    Section 99. Effective date. This Act takes effect January
91, 2023.