wa-law.org > bill > 2025-26 > HB 1703 > Substitute Bill
The commission may impose fees, as the commission deems reasonable and appropriate, in order to pay federal fees and be in compliance with the horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et seq., as amended. Revenues from the fees under this section must be deposited in the Washington equine industry federal regulatory account created in section 4 of this act. The commission may adopt rules to implement this section.
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In computing the tax imposed under this chapter, a credit is allowed for all amounts paid by a person licensed to conduct race meets in this state in an amount equal to the amount paid by the person in the prior calendar year to:
The federal horseracing integrity safety authority; or
The Washington horse racing commission.
Amounts paid are inclusive of any applicable true-up calculations or credits made, granted, or applied to an assessment imposed on the person by the federal horseracing integrity safety authority, for covered race meets in the state, pursuant to the horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et seq., as amended.
A person must have made the payment before claiming a credit authorized under this section. The credit may be used against any tax due under this chapter. The amount of the credit claimed for a reporting period may not exceed the tax otherwise due under this chapter for that reporting period. No refunds may be granted for any unused credits.
To claim a credit under this section, a person must:
File an application with the department by the 31st day of January following the calendar year in which the applicant made payments as outlined in subsection (1) of this section. The application must be made to the department in a form and manner prescribed by the department;
Electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in electronic format;
Keep records necessary for the department to verify eligibility under this section.
The Washington horse racing commission must provide to the department, upon request, such information as may be needed to verify eligibility for credit under this section, including information regarding payments received by the commission.
Chapter 82.32 RCW applies to the administration of this section.
The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
"Race meet" has the same meaning as in RCW 67.16.010.
"Returns" has the same meaning as "return" in RCW 82.32.050.
By January 1, 2026, and by January 1st of each year thereafter, the state treasurer, based upon information provided by the department of revenue, must transfer from the general fund to the Washington equine industry federal regulatory account created in section 4 of this act an amount not to exceed $1,500,000 per fiscal year directly derived from the imposition of state sales and use taxes collected by a class 1 racing association in the prior calendar year.
Following each biennium, the maximum amount allowed to be transferred per subsection (1) of this section shall be reviewed and adjusted for inflation based on changes in the consumer price index.
For purposes of this section, the following definitions apply:
"Consumer price index" means, for any 12-month period, the average consumer price index for that 12-month period for the Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.
"Class 1 racing association" has the meaning provided in RCW 67.16.200.
The Washington equine industry federal regulatory account is created in the state treasury. All receipts transferred to the account pursuant to section 3 of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only to pay fees charged by the federal horseracing integrity safety authority pursuant to the horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et seq., as amended.
RCW 82.32.805 and 82.32.808 do not apply to section 2 of this act.
Sections 1, 3, and 4 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2025.
Section 2 of this act takes effect January 1, 2026.