Table of Contents Background Colorado’s tax on pari-mutuel wagering was enacted in 1947.1 The pari-mutuel tax is an ad valorem tax levied on gross receipts from wagers on horse and greyhound events. Effective 2014, greyhound racing is illegal in Colorado,2 but pari‑mutuel wagering at off‑track facilities where a race is “simulcast” is permitted. Pari‑mutuel tax revenue is subject to the revenue and spending limitations of TABOR. Tax Rate Taxes are levied on gross receipts from wagering on horse and greyhound racing events, prior to removal of the track or facility take and prior to the distribution of winnings. Tax rates and the disbursement of revenue vary by event as follows: Event Tax Rate Distribution Greyhound - Simulcast and Live All Wagers* 4.5% General Fund Horse Racing – Simulcast All Wagers 0.75% Horse Racing – Live, the greater of: All Wagers per Race Day 0.75% $2,500 Horse Racing – Simulcast All “Exotic” wagers 0.25% CSU School of Veterinary Medicine (equine research) Horse Racing – Simulcast All “win, place, or show” wagers All “exotic” wagers” 0.50% 1.50% Held in escrow for the Horse Owners and Breeders Fund *Obsolete in practice. See the 'Exemptions' section below. Tax Exemptions Pari‑mutuel wagers on simulcast greyhound racing broadcast through a horse racing facility are taxed at the 0.75 percent horse racing rate rather than the 4.5 percent greyhound racing rate. Effective 2014, live greyhound racing is illegal in Colorado and all simulcast races are broadcast through horse racing facilities. In practice, greyhound wagers are taxed exactly the same way as horse wagers. Tax revenue follows an identical distribution, except that 0.25 percent of wagers are dedicated to greyhound adoption programs rather than the CSU equine research program. Distribution See table above. State Comparisons Including Colorado, 41 states allow pari-mutuel wagering on horse or greyhound racing. ____________________ 1Part 7 of Article 33, Title 44, C.R.S. 2House Bill 14-1146. Your feedback on this handbook is welcome. Table of Contents Colorado Online Tax Handbook Home TABOR Cigarette Tax Tobacco Products Tax Nicotine Products Tax Estate Tax Aviation Fuel Tax Motor Fuel Tax Passenger-Mile Tax Gaming Tax Sports Betting Tax Corporate Income Tax Individual Income Tax Income Tax Checkoffs Alternative Minimum Tax Insurance Premium Tax Marijuana Taxes Liquor Tax Pari-Mutuel Racing Tax Sales and Use Taxes Severance Tax
