Mobile County; local privilege tax on historical horse racing, levied

Plain English Breakdown

While the official status label indicates 'Passed Legislature', the last action listed is 'Re-referred to Committee in House of Origin' on March 11, 2026. This creates uncertainty about whether the bill has actually completed all legislative steps required for final enrollment.

Mobile County Tax on Historical Horse Racing Machines

This bill creates an eight percent tax in Mobile County on the net gambling revenue earned from betting machines that use historical horse racing results.

What This Bill Does

• Levies a privilege tax of eight percent on net gambling revenue collected from pari-mutuel wagering on historical horse racing activities using computerized machines.
• Requires the Mobile County Racing Commission to collect this tax from each licensee operating these machines and distribute it as provided by local law.
• Defines 'net gambling revenue' as total money received minus free bets, promotional credits, federal excise taxes, voided wagers, and prizes paid out.
• Replaces any other local taxes or fees currently charged on historical horse racing pari-mutuel activities in the county.
• States that this law does not change tax rules for live greyhound racing or simulcast events.

Who It Names or Affects

• Historical horse racing licensees operating computerized machines in Mobile County
• The Mobile County Racing Commission, which collects and distributes the tax

Terms To Know

Pari-mutuel wagering

A betting system where all bets of a particular type are placed together in a pool.

Historical horse racing

Betting activities on computerized machines using past race results rather than live races happening at that moment.

Net gambling revenue

The total money taken in from bets minus free bets, promotional credits, federal excise taxes, voided wagers, and prizes paid out.

Limits and Unknowns

• This law does not allow any new forms of gambling beyond what is already permitted by state law.
• The bill takes effect on October 1, 2026, so the tax will not start before that date.

Official Summary Text

Mobile County; local privilege tax on historical horse racing, levied

Current Bill Text

HB534 INTRODUCED
Page 0
HB534
9JI5UBM-1
By Representative Wilcox (N & P)
RFD: Mobile County Legislation
First Read: 03-Mar-26
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9JI5UBM-1 02/27/2026 CMH (L)CMH 2026-1136
Page 1
First Read: 03-Mar-26
A BILL
TO BE ENTITLED
AN ACT
Relating to Mobile County; to levy a local privilege
tax on the net gambling revenue collected on pari-mutuel
wagering on historical horse racing activities in the county.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) There is levied in Mobile County a
privilege tax of eight percent of the net gambling revenue
collected from pari-mutuel wagering on historical horse racing
on computerized machines of a historical horse racing licensee
of the Mobile County Racing Commission. The tax shall be
collected by the Mobile County Racing Commission from each
historical horse racing licensee and distributed as provided
by local law.
(b) For purposes of subsection (a), "net gambling
revenue" means the total amount of money or value in any form
received as a result of any pari-mutuel wagering on historical
horse racing activities in Mobile County, excluding free bets,
free lays, and promotional credits, less federal excise taxes,
voided wagers, and the total money or value in any form paid
as prizes or winnings.
(c) the local privilege tax collected by the Mobile
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HB534 INTRODUCED
Page 2
(c) the local privilege tax collected by the Mobile
County Racing Commission under this section is exclusive of
and supersedes any other local taxes, fees, or commissions now
imposed on historical horse racing pari-mutuel activities in
the county, including, but not limited to, the tax imposed
pursuant to Section 45-49-151.14, Code of Alabama 1975.
(d) Nothing in this section shall change the existing
tax structure contained in section 45-49-151.14, Code of
Alabama 1975, for live greyhound racing, as well as simulcast
live greyhound and thoroughbred racing in Mobile County, which
is not historical horse racing.
(e) Nothing in this section shall be construed to
authorize, permit, or expand any form of gambling activity
beyond that which is permitted by law on the effective date of
this act.
Section 2. This act shall become effective on October
1, 2026 .
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