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Pari-Mutuel Tax
Who is responsible for this tax?
The racetrack pays tax on the amount of money wagered on horse and greyhound racing (includes simulcast).
Rates
| The tax rate for each race is … | When the total amount wagered for races in a calendar year is … |
|---|---|
| 1 percent | More than $100 million but less than $200 million |
| 2 percent | More than $200 million but less than $300 million |
| 3 percent | More than $300 million but less than $400 million |
| 4 percent | More than $400 million but less than $500 million |
| 5 percent | More than $500 million |
| The tax rate is … | If the simulcast is of … |
|---|---|
| 1 percent | Horse races at horse racetracks OR greyhound races at greyhound racetracks |
| 1.25 percent | Horse races at greyhound racetracks OR greyhound races at horse racetracks |
Due Date
The Comptroller's office must receive reports by the end of the next business day following a race.
Penalties and Interest
Penalties
A racetrack association is liable for a penalty if the racetrack association does not pay the state's share of a pari-mutuel pool or file a report related to the payment of that share on or before the time the payment or report is due.
The amount of the penalty is the greater of:
- five percent of the total amount due; or
- $1,000
An additional penalty in an amount equal to one percent of the unpaid amount of the state's share of the pari-mutuel pool shall be added for each business day that the required report or payment is late, up to a maximum penalty of 12 percent.
A penalty under this section may be waived in a situation in which a penalty would be waived under Section 111.103, Tax Code.
Interest
- Past due taxes are charged interest beginning 61 days after the due date.
- To calculate interest on past due taxes, visit Interest Owed and Earned.
Electronic Reporting
No.