House Bill 645 Alabama 2026 Session

Summary

Primary Sponsor

Rolanda HollisRepresentative

Democrat

Session

2026 Regular Session

Title

Taxation; state privilege tax levied for historical horse racing

Summary

HB645 would create an eight percent state privilege tax on net gambling revenue from historical horse racing, replacing local taxes on these activities.

What This Bill Does

The bill would levy an eight percent tax on the net gambling revenue from historical horse racing via computerized machines, collected by the Department of Revenue from each licensee and distributed per local law. Net gambling revenue is the total amount received from pari-mutuel wagering minus exclusions such as free bets, free lays, promotional credits, and after subtracting federal excise taxes, voided wagers, and the prizes paid. The tax would override existing local taxes, fees, or commissions on these activities, and would repeal several existing local tax provisions related to pari-mutuel wagering.

Who It Affects

• Historical horse racing licensees/operators—would be taxed 8% of net gambling revenue from their historical horse racing activities.
• Alabama Department of Revenue—would collect the tax from licensees.
• Local governments (cities/counties)—would receive distributions from the tax and would see the repealed local taxes removed as of the act.

Key Provisions

• Establishes an 8% state privilege tax on net gambling revenue from historical horse racing pari-mutuel wagering on computerized machines.
• Tax is collected by the Department of Revenue and distributed as provided by local law.
• Defines net gambling revenue with specific exclusions and deductions (free bets, free lays, promotional credits; minus federal taxes, voided wagers, and prizes).
• Tax supersedes existing local taxes/fees/commissions on these activities and repeals several local tax provisions related to pari-mutuel wagering (listed sections).
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 19, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue