CHAPTER 13. WAGERING TAXES
IC 4-33-13
Chapter 13. Wagering Taxes
IC 4-33-13-1
Adjusted gross receipts tax; rate; payment; inapplicability toflexible scheduling
Sec. 1. (a) This section does not apply to a riverboat that hasimplemented flexible scheduling under IC 4-33-6-21.
(b) Subject to section 1.5(h) of this chapter, a tax is imposed onthe adjusted gross receipts received from gambling games authorizedunder this article at the rate of twenty-two and five-tenths percent(22.5%) of the amount of the adjusted gross receipts.
(c) The licensed owner shall remit the tax imposed by this chapterto the department before the close of the business day following theday the wagers are made.
(d) The department may require payment under this section to bemade by electronic funds transfer (as defined in IC 4-8.1-2-7(e)).
(e) If the department requires taxes to be remitted under thischapter through electronic funds transfer, the department may allowthe licensed owner to file a monthly report to reconcile the amountsremitted to the department.
(f) The department may allow taxes remitted under this section tobe reported on the same form used for taxes paid under IC 4-33-12.
As added by P.L.277-1993(ss), SEC.124. Amended byP.L.192-2002(ss), SEC.24; P.L.224-2003, SEC.45.
IC 4-33-13-1.5
Graduated wagering tax applied to riverboats implementingflexible scheduling
Sec. 1.5. (a) This section applies only to a riverboat that hasimplemented flexible scheduling under IC 4-33-6-21 or IC 4-33-6.5.
(b) A graduated tax is imposed on the adjusted gross receiptsreceived from gambling games authorized under this article asfollows:
(1) Fifteen percent (15%) of the first twenty-five million dollars($25,000,000) of adjusted gross receipts received during theperiod beginning July 1 of each year and ending June 30 of thefollowing year.
(2) Twenty percent (20%) of the adjusted gross receipts inexcess of twenty-five million dollars ($25,000,000) but notexceeding fifty million dollars ($50,000,000) received duringthe period beginning July 1 of each year and ending June 30 ofthe following year.
(3) Twenty-five percent (25%) of the adjusted gross receipts inexcess of fifty million dollars ($50,000,000) but not exceedingseventy-five million dollars ($75,000,000) received during theperiod beginning July 1 of each year and ending June 30 of thefollowing year.
(4) Thirty percent (30%) of the adjusted gross receipts in excessof seventy-five million dollars ($75,000,000) but not exceeding
one hundred fifty million dollars ($150,000,000) receivedduring the period beginning July 1 of each year and ending June30 of the following year.
(5) Thirty-five percent (35%) of all adjusted gross receipts inexcess of one hundred fifty million dollars ($150,000,000) butnot exceeding six hundred million dollars ($600,000,000)received during the period beginning July 1 of each year andending June 30 of the following year.
(6) Forty percent (40%) of all adjusted gross receipts exceedingsix hundred million dollars ($600,000,000) received during theperiod beginning July 1 of each year and ending June 30 of thefollowing year.
(c) The licensed owner or operating agent shall remit the taximposed by this chapter to the department before the close of thebusiness day following the day the wagers are made.
(d) The department may require payment under this section to bemade by electronic funds transfer (as defined in IC 4-8.1-2-7(f)).
(e) If the department requires taxes to be remitted under thischapter through electronic funds transfer, the department may allowthe licensed owner or operating agent to file a monthly report toreconcile the amounts remitted to the department.
(f) The department may allow taxes remitted under this section tobe reported on the same form used for taxes paid under IC 4-33-12.
(g) If a riverboat implements flexible scheduling during any partof a period beginning July 1 of each year and ending June 30 of thefollowing year, the tax rate imposed on the adjusted gross receiptsreceived while the riverboat implements flexible scheduling shall becomputed as if the riverboat had engaged in flexible schedulingduring the entire period beginning July 1 of each year and endingJune 30 of the following year.
(h) If a riverboat:
(1) implements flexible scheduling during any part of a periodbeginning July 1 of each year and ending June 30 of thefollowing year; and
(2) before the end of that period ceases to operate the riverboatwith flexible scheduling;
the riverboat shall continue to pay a wagering tax at the tax ratesimposed under subsection (b) until the end of that period as if theriverboat had not ceased to conduct flexible scheduling.
As added by P.L.192-2002(ss), SEC.25. Amended by P.L.224-2003,SEC.46; P.L.92-2003, SEC.54; P.L.97-2004, SEC.16; P.L.233-2007,SEC.18.
IC 4-33-13-2
State gaming fund; establishment
Sec. 2. The state gaming fund is established. Money in the funddoes not revert to the state general fund at the end of the state fiscalyear.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.273-1999,SEC.41.
IC 4-33-13-3
Deposits into state gaming fund
Sec. 3. The department shall deposit tax revenue collected underthis chapter in the state gaming fund.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.273-1999,SEC.42.
IC 4-33-13-4
Appropriations
Sec. 4. Sufficient funds are annually appropriated to thecommission from the state gaming fund to administer this article.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.20-1995,SEC.18; P.L.273-1999, SEC.43.
IC 4-33-13-5
Disposition of tax revenue
Sec. 5. (a) This subsection does not apply to tax revenue remittedby an operating agent operating a riverboat in a historic hotel district.After funds are appropriated under section 4 of this chapter, eachmonth the treasurer of state shall distribute the tax revenue depositedin the state gaming fund under this chapter to the following:
(1) The first thirty-three million dollars ($33,000,000) of taxrevenues collected under this chapter shall be set aside forrevenue sharing under subsection (e).
(2) Subject to subsection (c), twenty-five percent (25%) of theremaining tax revenue remitted by each licensed owner shall bepaid:
(A) to the city that is designated as the home dock of theriverboat from which the tax revenue was collected, in thecase of:
(i) a city described in IC 4-33-12-6(b)(1)(A); or
(ii) a city located in a county having a population of morethan four hundred thousand (400,000) but less than sevenhundred thousand (700,000); or
(B) to the county that is designated as the home dock of theriverboat from which the tax revenue was collected, in thecase of a riverboat whose home dock is not in a citydescribed in clause (A).
(3) Subject to subsection (d), the remainder of the tax revenueremitted by each licensed owner shall be paid to the stategeneral fund. In each state fiscal year, the treasurer of state shallmake the transfer required by this subdivision not later than thelast business day of the month in which the tax revenue isremitted to the state for deposit in the state gaming fund.However, if tax revenue is received by the state on the lastbusiness day in a month, the treasurer of state may transfer thetax revenue to the state general fund in the immediatelyfollowing month.
(b) This subsection applies only to tax revenue remitted by anoperating agent operating a riverboat in a historic hotel district. After
funds are appropriated under section 4 of this chapter, each monththe treasurer of state shall distribute the tax revenue remitted by theoperating agent under this chapter as follows:
(1) Thirty-seven and one-half percent (37.5%) shall be paid tothe state general fund.
(2) Nineteen percent (19%) shall be paid to the West BadenSprings historic hotel preservation and maintenance fundestablished by IC 36-7-11.5-11(b). However, at any time thebalance in that fund exceeds twenty million dollars($20,000,000), the amount described in this subdivision shall bepaid to the state general fund.
(3) Eight percent (8%) shall be paid to the Orange Countydevelopment commission established under IC 36-7-11.5.
(4) Sixteen percent (16%) shall be paid in equal amounts toeach town that is located in the county in which the riverboat islocated and contains a historic hotel. The following apply totaxes received by a town under this subdivision:
(A) At least twenty-five percent (25%) of the taxes must betransferred to the school corporation in which the town islocated.
(B) At least twelve and five-tenths percent (12.5%) of thetaxes imposed on adjusted gross receipts received after June30, 2010, must be transferred to the Orange Countydevelopment commission established by IC 36-7-11.5-3.5.
(5) Nine percent (9%) shall be paid to the county treasurer ofthe county in which the riverboat is located. The countytreasurer shall distribute the money received under thissubdivision as follows:
(A) Twenty-two and twenty-five hundredths percent(22.25%) shall be quarterly distributed to the countytreasurer of a county having a population of more thanthirty-nine thousand six hundred (39,600) but less than fortythousand (40,000) for appropriation by the county fiscalbody after receiving a recommendation from the countyexecutive. The county fiscal body for the receiving countyshall provide for the distribution of the money receivedunder this clause to one (1) or more taxing units (as definedin IC 6-1.1-1-21) in the county under a formula establishedby the county fiscal body after receiving a recommendationfrom the county executive.
(B) Twenty-two and twenty-five hundredths percent(22.25%) shall be quarterly distributed to the countytreasurer of a county having a population of more than tenthousand seven hundred (10,700) but less than twelvethousand (12,000) for appropriation by the county fiscalbody after receiving a recommendation from the countyexecutive. The county fiscal body for the receiving countyshall provide for the distribution of the money receivedunder this clause to one (1) or more taxing units (as definedin IC 6-1.1-1-21) in the county under a formula established
by the county fiscal body after receiving a recommendationfrom the county executive.
(C) Fifty-five and five-tenths percent (55.5%) shall beretained by the county in which the riverboat is located forappropriation by the county fiscal body after receiving arecommendation from the county executive.
(6) Five percent (5%) shall be paid to a town having apopulation of more than two thousand two hundred (2,200) butless than three thousand five hundred (3,500) located in acounty having a population of more than nineteen thousandthree hundred (19,300) but less than twenty thousand (20,000).At least forty percent (40%) of the taxes received by a townunder this subdivision must be transferred to the schoolcorporation in which the town is located.
(7) Five percent (5%) shall be paid to a town having apopulation of more than three thousand five hundred (3,500)located in a county having a population of more than nineteenthousand three hundred (19,300) but less than twenty thousand(20,000). At least forty percent (40%) of the taxes received bya town under this subdivision must be transferred to the schoolcorporation in which the town is located.
(8) Five-tenths percent (0.5%) of the taxes imposed on adjustedgross receipts received after June 30, 2010, shall be paid to theIndiana economic development corporation established byIC 5-28-3-1.
(c) For each city and county receiving money under subsection(a)(2), the treasurer of state shall determine the total amount ofmoney paid by the treasurer of state to the city or county during thestate fiscal year 2002. The amount determined is the base yearrevenue for the city or county. The treasurer of state shall certify thebase year revenue determined under this subsection to the city orcounty. The total amount of money distributed to a city or countyunder this section during a state fiscal year may not exceed theentity's base year revenue. For each state fiscal year, the treasurer ofstate shall pay that part of the riverboat wagering taxes that:
(1) exceeds a particular city's or county's base year revenue; and
(2) would otherwise be due to the city or county under thissection;
to the state general fund instead of to the city or county.
(d) Each state fiscal year the treasurer of state shall transfer fromthe tax revenue remitted to the state general fund under subsection(a)(3) to the build Indiana fund an amount that when added to thefollowing may not exceed two hundred fifty million dollars($250,000,000):
(1) Surplus lottery revenues under IC 4-30-17-3.
(2) Surplus revenue from the charity gaming enforcement fundunder IC 4-32.2-7-7.
(3) Tax revenue from pari-mutuel wagering under IC 4-31-9-3.
The treasurer of state shall make transfers on a monthly basis asneeded to meet the obligations of the build Indiana fund. If in any
state fiscal year insufficient money is transferred to the state generalfund under subsection (a)(3) to comply with this subsection, thetreasurer of state shall reduce the amount transferred to the buildIndiana fund to the amount available in the state general fund fromthe transfers under subsection (a)(3) for the state fiscal year.
(e) Before August 15 of each year, the treasurer of state shalldistribute the wagering taxes set aside for revenue sharing undersubsection (a)(1) to the county treasurer of each county that does nothave a riverboat according to the ratio that the county's populationbears to the total population of the counties that do not have ariverboat. Except as provided in subsection (h), the county auditorshall distribute the money received by the county under thissubsection as follows:
(1) To each city located in the county according to the ratio thecity's population bears to the total population of the county.
(2) To each town located in the county according to the ratio thetown's population bears to the total population of the county.
(3) After the distributions required in subdivisions (1) and (2)are made, the remainder shall be retained by the county.
(f) Money received by a city, town, or county under subsection (e)or (h) may be used for any of the following purposes:
(1) To reduce the property tax levy of the city, town, or countyfor a particular year (a property tax reduction under thissubdivision does not reduce the maximum levy of the city,town, or county under IC 6-1.1-18.5).
(2) For deposit in a special fund or allocation fund createdunder IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5, IC 36-7-15.1, andIC 36-7-30 to provide funding for debt repayment.
(3) To fund sewer and water projects, including storm watermanagement projects.
(4) For police and fire pensions.
(5) To carry out any governmental purpose for which the moneyis appropriated by the fiscal body of the city, town, or county.Money used under this subdivision does not reduce the propertytax levy of the city, town, or county for a particular year orreduce the maximum levy of the city, town, or county underIC 6-1.1-18.5.
(g) This subsection does not apply to an entity receiving moneyunder IC 4-33-12-6(c). Before September 15 of each year, thetreasurer of state shall determine the total amount of moneydistributed to an entity under IC 4-33-12-6 during the preceding statefiscal year. If the treasurer of state determines that the total amountof money distributed to an entity under IC 4-33-12-6 during thepreceding state fiscal year was less than the entity's base yearrevenue (as determined under IC 4-33-12-6), the treasurer of stateshall make a supplemental distribution to the entity from taxescollected under this chapter and deposited into the state general fund.Except as provided in subsection (i), the amount of an entity'ssupplemental distribution is equal to:
(1) the entity's base year revenue (as determined under
IC 4-33-12-6); minus
(2) the sum of:
(A) the total amount of money distributed to the entityduring the preceding state fiscal year under IC 4-33-12-6;plus
(B) any amounts deducted under IC 6-3.1-20-7.
(h) This subsection applies only to a county containing aconsolidated city. The county auditor shall distribute the moneyreceived by the county under subsection (e) as follows:
(1) To each city, other than a consolidated city, located in thecounty according to the ratio that the city's population bears tothe total population of the county.
(2) To each town located in the county according to the ratiothat the town's population bears to the total population of thecounty.
(3) After the distributions required in subdivisions (1) and (2)are made, the remainder shall be paid in equal amounts to theconsolidated city and the county.
(i) This subsection applies only to the Indiana horse racingcommission. For each state fiscal year the amount of the Indianahorse racing commission's supplemental distribution undersubsection (g) must be reduced by the amount required to complywith IC 4-33-12-7(a).
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.2-1995,SEC.11; P.L.25-1995, SEC.7; P.L.273-1999, SEC.44; P.L.186-2002,SEC.11; P.L.178-2002, SEC.3; P.L.192-2002(ss), SEC.26;P.L.185-2003, SEC.1; P.L.92-2003, SEC.55; P.L.224-2003, SEC.47;P.L.97-2004, SEC.17; P.L.2-2005, SEC.10; P.L.246-2005, SEC.46;P.L.91-2006, SEC.4; P.L.233-2007, SEC.19; P.L.234-2007,SEC.281; P.L.3-2008, SEC.14; P.L.146-2008, SEC.18; P.L.96-2010,SEC.4.
IC 4-33-13-6
Tax revenue paid to local governments
Sec. 6. (a) Money paid to a unit of local government under thischapter:
(1) must be paid to the fiscal officer of the unit and may bedeposited in the unit's general fund or riverboat fund establishedunder IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum or actual levyunder IC 6-1.1-18.5; and
(3) may be used for any legal or corporate purpose of the unit,including the pledge of money to bonds, leases, or otherobligations under IC 5-1-14-4.
(b) This chapter does not prohibit the city or county designated asthe home dock of the riverboat from entering into agreements withother units of local government in Indiana or in other states to sharethe city's or county's part of the tax revenue received under thischapter.
As added by P.L.277-1993(ss), SEC.124. Amended by P.L.90-1997,SEC.3.