The racetrack pays tax on the amount of money wagered on horse and greyhound racing (includes simulcast).
|The tax rate for each race is …||When the total amount wagered for races in a calendar year is …|
|1 percent||More than $100 million but less than $200 million|
|2 percent||More than $200 million but less than $300 million|
|3 percent||More than $300 million but less than $400 million|
|4 percent||More than $400 million but less than $500 million|
|5 percent||More than $500 million|
|The tax rate is …||If the simulcast is of …|
|1 percent||Horse races at horse racetracks OR greyhound races at greyhound racetracks|
|1.25 percent||Horse races at greyhound racetracks OR greyhound races at horse racetracks|
The Comptroller's office must receive reports by the end of the next business day following a race.
A racetrack association is liable for a penalty if the racetrack association does not pay the state's share of a pari-mutuel pool or file a report related to the payment of that share on or before the time the payment or report is due.
The amount of the penalty is the greater of:
An additional penalty in an amount equal to one percent of the unpaid amount of the state's share of the pari-mutuel pool shall be added for each business day that the required report or payment is late, up to a maximum penalty of 12 percent.
A penalty under this section may be waived in a situation in which a penalty would be waived under Section 111.103, Tax Code.