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 History: Pari-Mutuel Tax ReductionThe major focus of OHRIA’s efforts in 1996 was on obtaining a reduction in the pari-mutuel tax rate. The Ontario horse racing industry had been operating in an uncompetitive playing field for many years. The government introduced new forms of gaming into the Ontario market yet had not altered the monopolistic tax structure imposed on horse racing. At the same time other horse racing jurisdictions reduced or rebated all of their pari-mutuel taxes back to the industry.OHRIA prepared a “Competitive Issues Paper” (January 1996) and a “Background Paper on Competitive Issues” (February 1996) which outlined the benefits of reducing the pari-mutuel tax level to 0.5%. Follow up meetings were held at both Queen’s Park and in constituency offices. In conjunction with this reduction, the industry proposed to become self-regulated, assuming many of the responsibilities currently handled by the Ontario Racing Commission. In the May 7, 1996 Spring Budget, the Hon. Ernie Eves announced that gaming facilities at racetracks licensed by the Ontario Racing Commission would be enhanced and that there would be a reduction in pari-mutuel taxes, from a net of 5% to 0.5% on all wagers, provided that the industry submitted a business plan to share the additional resources fairly and to secure the future of Ontario’s horse racing industry. On June 10, 1996 OHRIA submitted its “Business Plan to Support the Reduction in Pari-Mutuel Taxes” to the Minister of Consumer and Commercial Relations, and the pari-mutuel tax reduction became effective on September 30, 1996. | |   | |||||||||||||||||||||||
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