Ruidoso Downs Race Track & Casino says measure key to remaining in area
Legislation that would reduce New Mexico's gaming tax on certain horse racing tracks has been introduced again this year at Santa Fe.
The measure would graduate the current 26 percent tax on the net take of tracks and their casinos in the state.
"It is specific to Ruidoso (Downs)," said Senator Carlos Cisneros (D-Questa), who introduced the bill. "It doesn't say Ruidoso, but that's the intent. This bill would reduce the tax burden for the Ruidoso Downs Race Track."
If the legislation is approved, the gaming tax would be 20 percent on the first $10 million of net take for fiscal year 2011, which will begin July 1,2010.
Net take is defined as the amount wagered minus what is paid out in winnings.
Net take over $10 million would be subject to the 26 percent rate.
For fiscal year 2012, the rate on net take under $10 million would drop to 15 percent. And in 2013 and subsequent years it would be reduced to 10 percent.
Track officials have said for several years that nearby tribal casinos pay a smaller percentage in revenue sharing to the state and tax parity is needed.
"There is validity to the value of the track to the community," said Cisneros. "The argument is valid, to help a facility that is losing money and may not stay afloat. The argument this time will be the offset of new revenues with another venue."
Earlier Cisneros had also introduced legislation that would
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allow horse tracks to offer simulcasting and wagering on dog racing from greyhound parks around the country. He said that would provide additional revenues to the state to potentially cover the reduced gaming tax.
Reduced gaming tax legislation for racetracks and their casinos was unsuccessful the previous two years.
"They say the third time is the charm," said Cisneros, vice-chair of the Senate Finance Committee. "It's got some potential. But the finance committee will be the biggest hurdle."
The chair of the committee, Senator John Arthur Smith, said the bill would have to be reviewed by the finance panel.
"I'm not real enthused," Smith said of the legislation. "The governor said he is pursuing this help for Mr. Hubbard. This is the worst time."
The state has seen a sharp decline in revenues the past year because of the downturn in the national economy.
"If this makes it to the floor people have to realize we're not funding education, we're not funding health care. But we're funding gambling," said Smith. "The irony of the whole thing is 10 years ago Mr. Hubbard had lobbyists who said they would have no problem paying these taxes."
In 1997 legislation passed, allowing slot machines at New Mexico racetracks to help prop up the horse racing industry.
"The reality of getting this bill passed this year is difficult," Ruidoso Downs city attorney and lobbyist H. John Underwood told the Ruidoso Rotary Club Tuesday. Calling the track and its casino the key economic engine for Lincoln County, Underwood urged club members to contact lawmakers.
"Without the engine that drives the train the box cars will sit still," said Underwood. "It's our track. We need to support the tax parity legislation. The Ruidoso Downs race track is our Cannon Air Force Base."
In 2005 the Clovis area assembled a major lobbying effort that helped sway the Base Realignment and Closure Commission to reverse a recommendation to close the nearby air base.
A report that state law prohibits horse racetracks and their casinos within 80 miles of each was called incorrect by Underwood. He said the law forbids simulcasting while a nearby track is conducting its racing season.
A "Back the Track" website has been established by the Ruidoso Valley Chamber of Commerce, which is leading an effort to keep the racetrack in Ruidoso Downs. It includes an on-line survey and a link to contact legislators.
"Send them an email," said Cynthia West, president of the Chamber. "Give them your input, your thoughts on how it would impact your businesses."
Underwood said he understands there are other communities in New Mexico courting Hubbard to relocate there.
"If there's other people romancing this track we need to do some romancing too with the Legislature," he said.