Alabama HB645 establishes a state privilege tax on historical horse racing, replacing local taxes.

Alabama HB645 introduces an eight percent state privilege tax on net gambling revenue from historical horse racing, collected by the Department of Revenue. This tax replaces all existing local taxes on such activities. The bill repeals specific sections of the Alabama Code that previously imposed local taxes on pari-mutuel wagering. The tax applies to revenue from historical horse racing on computerized machines, excluding free bets, promotional credits, and voided wagers. The act becomes effective on October 1, 2026.

Alabama HB645 establishes a state privilege tax on historical horse racing, replacing local taxes.

Alabama HB645 introduces an eight percent state privilege tax on net gambling revenue from historical horse racing, collected by the Department of Revenue. This tax replaces all existing local taxes on such activities. The bill repeals specific sections of the Alabama Code that previously imposed local taxes on pari-mutuel wagering. The tax applies to revenue from historical horse racing on computerized machines, excluding free bets, promotional credits, and voided wagers. The act becomes effective on October 1, 2026.