Legislation Includes Provision to Bag Withholding Tax

A major corporate tax bill under consideration in the United States Senate includes a few provisions for the pari-mutuel industry, including elimination of the 30% withholding tax on bets made by foreigners.

The $170-million bill has about 250 provisions, according to published reports. CongressDailyAM said it could be voted on the evening of May 11, though other reports have said movement on the bill could drag on as amendments are removed.

The pari-mutuel industry has made elimination of the withholding tax one of its goals for the past few years. Officials have said it would help open up international simulcasting and put more money into U.S. pools.

"We continue to urge passage of this important legislation, which we believe will promote significant growth opportunities for the domestic U.S. racing and breeding industries," said Greg Avioli, deputy commissioner of the National Thoroughbred Racing Association and a point man in Washington, D.C.

Another provision in the tax bill would reduce the capital-gains holding period on horses from 24 months to 12 months.