Equine industry

AN ACT Relating to establishing an equine industry tax credit, 1
allowing the horse racing commission to impose a fee, and using 2
equine industry sales tax revenues for federal regulatory compliance; 3
adding new sections to chapter 67.16 RCW; adding a new section to 4
chapter 82.04 RCW; creating a new section; providing an effective 5
date; and declaring an emergency. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. A new section is added to chapter 67.16 8
RCW to read as follows: 9
The commission may impose fees, as the commission deems 10
reasonable and appropriate, in order to pay federal fees and be in 11
compliance with the horseracing integrity and safety act of 2020, 15 12
U.S.C. Sec. 3051 et seq., as amended. Revenues from the fees under 13
this section must be deposited in the Washington equine industry 14
federal regulatory account created in section 4 of this act. The 15
commission may adopt rules to implement this section.16
NEW SECTION. Sec. 2. A new section is added to chapter 82.04 17
RCW to read as follows: 18
(1)(a) In computing the tax imposed under this chapter, a credit 19
is allowed for all amounts paid by a person licensed to conduct race 20
H-0819.1
HOUSE BILL 1703
State of Washington 69th Legislature 2025 Regular Session
By Representatives Stearns, Schmick, and Goodman
Read first time 01/29/25. Referred to Committee on Finance.
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meets in this state in an amount equal to the amount paid by the 1
person in the prior state fiscal year to: 2
(i) The federal horseracing integrity safety authority; or3
(ii) The Washington horse racing commission. 4
(b) Amounts paid are inclusive of any applicable true-up 5
calculations or credits made, granted, or applied to an assessment 6
imposed on the person by the federal horseracing integrity safety 7
authority, for covered race meets in the state, pursuant to the 8
horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et 9
seq., as amended. 10
(2) A person must have made the payment before claiming a credit 11
authorized under this section. The credit may be used against any tax 12
due under this chapter. The amount of the credit claimed for a 13
reporting period may not exceed the tax otherwise due under this 14
chapter for that reporting period. No refunds may be granted for any 15
unused credits. 16
(3) To claim a credit under this section, a person must 17
electronically file with the department all returns, forms, and any 18
other information required by the department, in an electronic format 19
as provided or approved by the department. Any return, form, or 20
information required to be filed in an electronic format under this 21
section is not filed until received by the department in electronic 22
format. 23
(4) No application is necessary for the tax credit. The person 24
must keep records necessary for the department to verify eligibility 25
under this section. 26
(5) The Washington horse racing commission must provide to the 27
department, upon request, such information as may be needed to verify 28
eligibility for credit under this section, including information 29
regarding payments received by the commission. 30
(6) Chapter 82.32 RCW applies to the administration of this 31
section. 32
(7) The definitions in this subsection apply throughout this 33
section unless the context clearly requires otherwise.34
(a) "Race meet" has the same meaning as in RCW 67.16.010.35
(b) "Returns" has the same meaning as "return" in RCW 82.32.050.36
NEW SECTION. Sec. 3. A new section is added to chapter 67.16 37
RCW to read as follows: 38
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(1) By July 1, 2026, and by July 1st of each year thereafter, the 1
state treasurer, based upon information provided by the department of 2
revenue, must transfer from the general fund to the Washington equine 3
industry federal regulatory account created in section 4 of this act 4
an amount not to exceed $1,500,000 per fiscal year directly derived 5
from the imposition of state sales and use taxes charged or levied on 6
the following equine products, services, or uses: 7
(a) Equines; 8
(b) Equine feed; 9
(c) Prescription drugs, over-the-counter drugs, or dietary 10
supplements dispensed or to be dispensed to equines;11
(d) Equine tack which includes, but is not limited to, equipment 12
used to ride or care for an equine such as saddles, driving 13
harnesses, girths, cinches, bridles, martingales, halters, lead 14
ropes, whips, long reins, wraps, and other items used in handling and 15
caring for equines; 16
(e) Horse bedding and grooming supplies; 17
(f) Other taxable sales directly related to equine ownership, 18
riding, or boarding; and 19
(g) Sale of horses including equines claimed at class 1 and class 20
C regulated race meets. 21
(2) Following each biennium, the amount not to exceed in 22
subsection (1) of this section may be reviewed and increased based on 23
inflationary calculations as determined by the department of revenue 24
and federal fee amounts as determined by the Washington horse racing 25
commission. 26
(3) For purposes of this section, "equine" has the meaning 27
provided in RCW 4.24.530. 28
NEW SECTION. Sec. 4. A new section is added to chapter 67.16 29
RCW to read as follows: 30
The Washington equine industry federal regulatory account is 31
created in the state treasury. All receipts transferred to the 32
account pursuant to section 3 of this act must be deposited into the 33
account. Moneys in the account may be spent only after appropriation. 34
Expenditures from the account may be used only to pay fees charged by 35
the federal horseracing integrity safety authority pursuant to the 36
horseracing integrity and safety act of 2020, 15 U.S.C. Sec. 3051 et 37
seq., as amended. 38
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NEW SECTION. Sec. 5. RCW 82.32.805 and 82.32.808 do not apply 1
to section 2 of this act.2
NEW SECTION. Sec. 6. This act is necessary for the immediate 3
preservation of the public peace, health, or safety, or support of 4
the state government and its existing public institutions, and takes 5
effect July 1, 2025.6
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