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Minutes for HB2434 - Committee on Taxation
Short Title
Crediting tax revenue generated from wagers made on historical horse races to the horse breeding development fund and the horse fair racing benefit fund.
Minutes Content for Wed, Mar 8, 2023
Chairperson Smith opened the hearing for HB2434.
Mr. Siebers provided an overview for HB2434 that amends how tax revenues are credited from wagers on historical horse races. Of the 3.0 percent tax that is levied on such wagers, the revenue is to be credited one third to the Kansas horse breeding development fund and two thirds to the horse fair racing benefit fund. (Attachment 4) Mr. Siebers stood for questions from Committee members.
Kathleen Smith, Kansas Department of Revenue, stated HB2434 does not affect the Department of Revenue noting the Kansas Racing and Gaming Commission has provided the fiscal impact and would defer to them.
Representative Dr. Duane Droge, House District 13, testified as a proponent for HB2434 noting this bill will have no cost to the state but would bolster horse racing and bring much needed money to rural Kansas. (Attachment 5)
Representative Mark Schreiber, House District 60, testified as a proponent for HB2434 noting he and his wife have become partners in racing thoroughbred horses in the past seven years. HB2434 will provide funding for improvements to former racetracks and a funding stream for developing a horse breeding industry. (Attachment 6)
Jeff Rutland, Kansas Quarter Horse Racing Association, testified as a proponent for HB2434 that would direct 3.0 percent of the money bet on historical horse racing to funds supporting live racing. The funds are dispersed by the Kansas Racing and Gaming Commission. HB2434 would re-vitalize the racing and breeding industry across the state in almost every county by offering incentives to breed, raise and run horses here in Kansas. (Attachment 7)
Stacy Randle, Greenwood County Fair Association, testified as a proponent for HB2434 noting the bill will benefit the agricultural and rural sectors of Kansas and provide revenue to support the rural communities. (Attachment 8)
Justine Staten, Kansas Horse Council, testified as a proponent for HB2434 noting the tax revenue allocation could do great things to incentivize live racing with administrative and operational cost assistance and bringing breeders back to Kansas through awards and incentives. The 3.0 percent tax revenue credit would grow the equine economic impact in Kansas by direct and indirect effects, and agritourism. (Attachment 9)
The conferees stood for questions from Committee members.
In response to a question, Justine Staten stated that her counterparts in Kentucky have said that the historical horse racing machines have generated in the billions of dollars worth of revenue. She noted the amount would be reduced down due to the machines not operating yet.
Written testimony was submitted by the following as proponents for HB2434.
Kailey Fitzmorris, DVM and Greenwood County Fair Association, (Attachment 10)
Randy Sampson, Canterberry Park, (Attachment 11)
Lucas Herb-Mullin, City Administrator and Stephen Coulter, Mayor, City of Eureka, Kansas, (Attachment 12)
Robin Wunderlich, Editor, The Eureka Herald, (Attachment 13)
Gail Radke, Asiel Stable, (Attachment 14)
Heather Fuesz, Mainstreet, (Attachment 15)
Peach & Ted Madl, Madl Farms, Wellsville, Kansas, (Attachment 16)
Rita Osborn, Kansas Quarter Horse Racing Association, (Attachment 17)
Chairperson Smith closed the hearing for HB2434.
Chairperson Smith adjourned the meeting at 4:10 p.m.
