Bill > HB262

This bill, effective October 1, 2026, establishes a new state privilege tax on historical racing, which involves wagering on past horse or greyhound races using computerized machines, and repeals certain local taxes related to racing. The new state tax will be four percent of the "net revenues," defined as the total money wagered on historical racing minus free bets, promotional credits, federal excise taxes, voided wagers, and prizes paid out. This state tax is intended to replace all other state and local taxes on this specific activity, while not altering the existing state tax structure for live greyhound and thoroughbred racing or simulcast racing. The bill also clarifies that historical racing can only occur at designated "authorized locations," which include specific pari-mutuel licensees in Greene, Jefferson, Macon, and Mobile Counties, as well as a Class C Bingo Permit holder in Houston County and a specific bingo facility in Lowndes County. Importantly, this legislation does not authorize any new forms of gambling beyond what is legally permitted as of October 1, 2026.

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