In addition to the licensing fee set forth in OAR
462-220-0030(6),
the hub operator shall pay to the Oregon Racing Commission the payments
authorized by ORS 462.725(4)(b)
on all gross mutuel wagering receipts recorded by the hub's totalizator system
during the license period. The payments shall be made as follows:
(1) Payments shall be made each month based
on the gross mutuel wagering receipts for that month.
(2) Payments shall be made in a timely manner
as prescribed by the executive director of the commission.
(3) Payments shall be calculated according to
one of the following formulas as elected by the hub operator in the manner
specified in section (6):
(a) Payment of
0.125% of the first 60 million dollars in gross mutuel wagering receipts during
the license period and 0.25% of the gross mutuel wagering receipts in excess of
60 million dollars during that period; or
(b) Payment of 0.25% of gross mutuel wagering
receipts, except that, if the hub operator conducts business in a state where
hubs are specifically authorized and the tax rate is less than 0.25%, the tax
rate for wagers by the residents of such state would be that of the state in
which they reside. This exception is limited to a single state designated by
the hub operator in the manner specified in section (7).
(4) Advanced deposit wagering handle from
past live racing products will be calculated separately from all other gross
mutual wagering receipts recorded by the hub's totalizator system. These
product wagering receipts will, however, follow the same payment structure as
all other gross wagering receipts including the maximum payment set out in
section (6).
(5) Each affiliate of
a licensed multi-jurisdictional hub will follow the same payment structure as
the licensed multi-jurisdictional hub including the maximum payment set out in
section 6. The additional payments, as outlined in (3), will occur after the
affiliate's first $20,000,000.00 in handle or after the licensee has reached
their maximum payment, whichever occurs last. The first $20,000,000.00 of the
affiliate's handle and any additional handle if the licensee has not yet
reached their maximum payment is exempt from separate fee payments. The first
$20,000,000.00 will nevertheless apply toward the licensee's maximum
payment.
(6) The maximum payment
for fiscal year 2023-2024 is $797,647.00. The maximum payment set out in
section (6) will increase 2.5% on an annual basis for each fiscal year through
2029-2030 unless the commission changes that limit before the beginning of a
fiscal year. Maximum payments through fiscal year 2029-2030 are calculated
below.
Fiscal Year - Fee Payment Schedule:
2023-24 - $797,647.00
2024-25 - $817,588.18
2025-26 - $838,027.88
2026-27 - $858,978.58
2027-28 - $880,453.04
2028-29 - $902,464.37
2029-2030 - $925,025.97
(7) The hub operator shall state in its
license application its election to pay tax calculated pursuant to section (3),
subsections (a) or (b), for gross mutuel wagering, and shall also designate a
state that is subject to the exception in section (3), subsection (b), if that
formula is elected. The hub operator statement shall be made in its license
application or at such other time as is specified by the Commission. Neither
the payment formula nor the state subject to the exception may be changed
during a license period without the prior approval of the Commission.
Notes
Or. Admin. Code
§
462-220-0040
RC 3-2000, f. 3-27-00,
cert. ef. 5-1-00; RC 1-2001, f. & cert. ef. 3-19-01; RC 4-2002, f. &
cert. ef. 6-28-02; RC 3-2003, f. 6-13-03, cert. ef. 7-1-03; RC 4-2003, f.
6-20-03, cert. ef. 7-1-03; RC 3-2004, f. 6-23-04, cert. ef. 7-1-04; RC 1-2005,
f. 5-23-05, cert. ef. 7-1-05; RC 2-2012, f. 5-29-12, cert. ef. 6-1-12; RC
3-2012, f. 10-9-12, cert. ef. 10-15-12;
RC
2-2016, f. & cert. ef.
5/9/2016;
RC
8-2018, amend filed 12/10/2018, effective
12/10/2018;
RC
2-2019, amend filed 10/10/2019, effective
10/10/2019;
RC
2-2023, amend filed 03/02/2023, effective
3/2/2023;
RC
5-2024, amend filed 02/23/2024, effective
2/23/2024
Statutory/Other Authority: ORS
462.270(3)
& 462.725
Statutes/Other Implemented: ORS
462.725
