HB 271 — CAPITAL IMPROVEMENTS GAMING TAX CREDIT

HOUSE BILL 271 5454TH THLEGISLATURE LEGISLATURE- STATE OF NEW MEXICO - STATEOFNEWMEXICO- SECOND SESSION , 2020 INTRODUCED BY Patricio Ruiloba and Greg Nibert and Candy Spence Ezzell and Zachary J.

Cook 7This 9document ANincorporates ACTamendments RELATINGthat TOhave GAMING;been adopted during the current legislative session.

The document is a tool to show the amendments in context and is not to be used for the purpose of amendments.

AN ACT RELATING TO GAMING;

14h g o BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

t hr g e i k SECTION 1.

A new section of the Gaming Control Act is h r i s enacted to read:

eh t, 17t, "[NEW MATERIAL]MATERIAL ] CAPITAL IMPROVEMENTS GAMING TAX CREDIT.-- we u g e b l ne de 18h A.

From July 1, 2020 through June 30, 2025,Hflº2025»Hfl an d d i = = 19o h Hflº 2023»Hfl, a taxpayer that is a racetrack gaming operator licenseel pursuant] ab l,d i a º e rlicensee 20pursuant to Section 60-2E-27 NMSA 1978 may claim, and ther taxationi and= ar t me mw 21d revenuem department shall allow, a taxn credito in an amount that d r e 22 does not exceed the taxpayer'staxation monthlyand gamingrevenue taxdepartment liabilityshall callow, e s k 23 pursuant to Section 60-2E-47 NMSA 1978, not to exceed a maximumtax e a n b 24 credit ofd onem million: five hundred thousand dollars u [ ($1,500,000) per fiscal year, if the taxpayer:

.216853.1b (1)e hadd durings theº taxableo periodt expendituresn for= capital.216853.1AIC improvementsFebruary or18, for2020 long-term(10:38am) financings ofk capitalm improvementse ate itsa existingn racetracke facilityd equalr toe orl greateru than[ A d in an amount that does not exceed the taxpayer's monthly gaming tax liability pursuant to Section 60-2E-47 NMSA 1978, not to exceed a maximum credit claimed;of one million five hundred thousand dollars ($1,500,000) per fiscal year, if the taxpayer:

(1) had during the taxable period expenditures for capital improvements or for long-term financing of capital improvements at its existing racetrack facility equal to or greater than the tax credit claimed;

A taxpayer shall not claim the capital improvements gaming tax credit if the taxpayer has used the expenditures for capital improvements or for long-term h g financing of capital improvements for another tax credit or o t hr deduction from a tax.

g e i k D.

The capital improvements gaming tax credit shall eh er 17i s be administered by the taxation and revenue department pursuant eh e, nt, de 18u g to the Tax Administration Act.

=e =b l ]e 19e h E.

The capital improvements gaming tax credit may an ld rd i 20= = o h be claimed on a monthly basis against the gaming tax remitted tl e] b ,d i a tº e r i = r to the state on a form provided by the taxation and revenue mt m 21 e w d rm ea 22n department."o cdepartment. e r c 23 SECTION 2.

EFFECTIVEHflº DATE.--The"»Hfl effectived datem of: the e a n b 24 provisions of this act is July 1, 2020.

ub [e d s º o t n = .216853.1AIC February 18, 2020 (10:38am) s k m e - 2 - .216853.1e a n e d r e l u [ A d HflºF.

For the year July 1, 2020 through June 30, 2021, the expenditures for capital improvements or for long- term financing of capital improvements calculated pursuant to Paragraph (1) of Subsection A of this section are limited to improvements directly related only to the racetrack facility, including the racing grounds, grandstand, access roads, parking areas and signage related to the racetrack facility, and shall not include improvements related to the gaming facility.

For the purpose of this subsection, "racing grounds" means the area of the restricted area of licensed premises used for the purpose of conducting horse races and all activities ancillary to the conduct of horse races, including the track, stable area, jockey's quarters and horse training areas."»Hfl SECTION 2.

EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.

- 3 - h u » r t h g e l i h r i s h , e h t u g e b l e e , gh n d d i = = o h l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .216853.1AIC February 18, 2020 (10:38am) s k m e e a n e d r e l u [ A d