Alabama House Bill HB645

Alabama 2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26

Caption

Taxation; state privilege tax levied for historical horse racing

Summary

HB645 would create a statewide privilege tax of 8% on net gambling revenue from pari-mutuel wagering on historical horse racing conducted on computerized machines by historical horse racing licensees. The bill defines net gambling revenue for this purpose and directs the Department of Revenue to collect the tax. It also states that the new state tax is exclusive and supersedes any other local taxes, fees, or commissions currently imposed on historical horse racing pari-mutuel activities. The bill further repeals several existing local and municipal tax provisions tied to pari-mutuel wagering and racing activities in specific jurisdictions, including Class 1 municipalities and counties such as Macon, Greene, and Mobile. It expressly preserves the current tax structure for live greyhound racing, simulcast greyhound racing, and live or simulcast horse racing that is not historical horse racing. The act would take effect on October 1, 2026, and it does not expand gambling beyond what is already permitted under existing law.

Impact

HB645 would centralize taxation of historical horse racing in Alabama by replacing a patchwork of local pari-mutuel wagering taxes and fees with a single state-level privilege tax. This would affect historical horse racing licensees, the Department of Revenue, and local governments that currently receive revenue under repealed local tax statutes. The bill would amend the state’s tax framework for this specific gambling activity while leaving other racing-related tax structures unchanged.

Sentiment

Based on the available context, the bill appears to be in an early stage and was pending committee action in the House of Origin, with no recorded votes or committee debate provided. The bill’s structure suggests a policy goal of simplifying and standardizing taxation of historical horse racing, which may appeal to proponents of uniform regulation and revenue collection. Because there is no transcript or vote history, there is no documented public sentiment in the record beyond the bill’s introduction and referral.

Contention

The main point of contention is likely the shift from local taxation to a statewide tax and the repeal of local tax provisions, which would affect revenue streams for municipalities and counties that currently levy pari-mutuel wagering taxes. Local governments may object to losing dedicated tax authority or revenue, while historical horse racing operators may support a single statewide tax in place of multiple local charges. Another possible issue is the bill’s careful limitation to historical horse racing, which avoids changing taxes on live racing and signals an effort to prevent broader gambling expansion.