Relating to tax on the privilege of holding a license to operate West Virginia Lottery table games
Summary
House Bill 3458 would amend West Virginia’s Racetrack Table Games Act to create a tax exemption for the first $7,142,857.14 of annual adjusted gross receipts earned by a racetrack table games licensee. Under current law as described in the bill, the annual privilege tax on table games is 35% of adjusted gross receipts; this bill would apply that tax only to receipts above the stated threshold. The measure also preserves the existing weekly reporting and payment structure, including electronic filing, remittance by electronic funds transfer, and rules for handling negative adjusted gross receipts.
The bill further clarifies that the privilege tax remains in lieu of most other state and local taxes and fees tied to operating West Virginia Lottery table games, while continuing the existing exceptions for ad valorem property tax. It also retains the current exemptions from consumers sales and services tax and use tax for table-game wagering receipts and for certain gaming-related purchases, and it continues the prohibition on tax credits for gaming equipment and related real property investments.
Impact
If enacted, HB3458 would reduce the taxable base for the annual privilege tax on racetrack table games by exempting the first $7,142,857.14 of annual adjusted gross receipts, thereby lowering tax liability for table games licensees with receipts above that threshold. The bill would amend §29-22C-25 of the West Virginia Code and affect the Racetrack Table Games Fund by reducing the amount of tax collected from qualifying operators. It would not change the reporting cadence, tax rate above the threshold, or the existing framework that preempts most other state and local taxes on table games operations.
Sentiment
The available record shows no committee transcript, vote tally, or recorded floor debate, so there is no documented public discussion to gauge support or opposition. Based on the bill’s structure, it appears to be a targeted tax relief measure for racetrack table games operators rather than a broad policy change. The introduction by multiple delegates suggests some sponsor support, but the absence of voting history or committee action prevents a stronger assessment of legislative sentiment.
Contention
The main point of contention is likely fiscal: the bill would lower tax collections from table games by carving out the first $7,142,857.14 of annual receipts from the 35% privilege tax. Supporters would likely view the change as tax relief or a way to improve the economics of racetrack table games, while opponents may argue it reduces revenue for the state and potentially for programs funded through the Racetrack Table Games Fund. Another possible issue is the continued broad tax-preemption structure, which already exempts these operations from many other state and local taxes, making the additional exemption more significant.