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HB645 • 2026

Taxation; state privilege tax levied for historical horse racing

Taxation; state privilege tax levied for historical horse racing

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Hollis
Last action
2026-03-19
Official status
Pending Committee Action in House of Origin
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details on how the tax revenue will be used, nor does it specify if this tax will impact gambling activities in Alabama.

Tax for Historical Horse Racing

This bill establishes an eight percent state privilege tax on the net gambling revenue from historical horse racing activities and repeals local taxes related to such activities.

What This Bill Does

  • Establishes a state privilege tax of eight percent on the net gambling revenue collected from pari-mutuel wagering on historical horse racing on computerized machines.
  • Defines 'net gambling revenue' as total money received minus prizes, free bets, federal excise taxes, and voided wagers.
  • Repeals local laws providing a tax on historical horse racing activities.

Who It Names or Affects

  • Historical horse racing licensees who will pay the new state privilege tax.
  • Local governments whose taxes related to historical horse racing are repealed.

Terms To Know

net gambling revenue
The total money made from bets minus prizes and other deductions.
historical horse racing
A type of betting where races that have already happened are shown on machines for people to bet on.

Limits and Unknowns

  • The bill does not specify how the tax revenue will be used.
  • It is unclear if this tax will impact gambling activities in Alabama.

Bill History

  1. 2026-03-19 House

    Pending Committee Action in House of Origin

  2. 2026-03-19 House

    Read for the first time and referred to the House Committee on Economic Development and Tourism

Official Summary Text

Taxation; state privilege tax levied for historical horse racing

Current Bill Text

Read the full stored bill text 
HB645 INTRODUCED
Page 0
HB645
U9N54GG-1
By Representative Hollis
RFD: Economic Development and Tourism
First Read: 19-Mar-26
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U9N54GG-1 03/19/2026 CMH (L)CMH 2026-1422
Page 1
First Read: 19-Mar-26
SYNOPSIS:
This bill would establish a state privilege tax
on historical horse racing activities which would be in
lieu of all other state and local taxes.
This bill would repeal local laws providing a
tax on such activities.
A BILL
TO BE ENTITLED
AN ACT
Relating to taxation; to establish a state privilege
tax on historical horse racing activities; and to repeal
Sections 11-65-29, 11-65-30, 11-65-35, 45-32-150.13,
45-44-150.12, and 45-49-151.14, Code of Alabama 1975, levying
local pari-mutuel wagering taxes and other fees
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) There is levied in the state a privilege
tax of eight percent of the net gambling revenue collected
from pari-mutuel wagering on historical horse racing on
computerized machines of each historical horse racing
licensee. The tax shall be collected by the Department of
Revenue from each historical horse racing licensee and
distributed as provided by local law.
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HB645 INTRODUCED
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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, 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 state privilege tax collected 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 state.
(d) Nothing in this section shall change the existing
tax structure for live greyhound racing, simulcast live
greyhound racing, or live or simulcast horse racing 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. The following sections are repealed:
(1) Section 11-65-29, Code of Alabama 1975, imposing
the state horse wagering fee in Class 1 municipalities.
(2) Section 11-65-30, Code of Alabama 1975, imposing
the commission wagering fee in Class 1 municipalities.
(3) Section 11-65-35, Code of Alabama 1975, relating to
certain racing taxes in Class 1 municipalities.
(4) Section 45-44-150.12, Code of Alabama 1975,
imposing a tax due on pari-mutuel pools in Macon County,
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HB645 INTRODUCED
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imposing a tax due on pari-mutuel pools in Macon County,
Alabama.
(5) Section 45-32-150.13, Code of Alabama 1975,
imposing a tax on pari-mutuel pools in Greene County, Alabama.
(6) Section 45-49-151.14, Code of Alabama 1975,
imposing a tax on pari-mutuel pools in Mobile County, Alabama.
Section 3. This act shall become effective on October
1, 2026.
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