Revenue from Race Track: Government Levy Made Against Ontario Race Courses, Daily Racing Form, 1924-11-11

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REVENUE FROM RACE TRACK 1 Government Levy Made Against Ontario Race Courses. How Public Is Protected, hy Collection of Tax Sport Is Regulated by a Dominion Act. TORONTO, Ont, Nov. 10. Just now, -when considerable public discussion is going on in the press anent increased taxation of race tracks, it is opportune that the racing enthusiast should know just what percentages jockey clubs are required to pay. Horse racing in Canada is carried on and regulated by a Dominion act which allows an association granted a charter with racing and betting privileges, prior to 1912, to race and permit betting twice a year. This charter must be exercised at least once every two years, otherwise it becomes inoperative. In some cases charters granted prior to 1912 without horse racing and pari-mutuel privileges have, after that date, had a horse racing right granted by letters patent In the case of Devonshire the courts have held horse racing with betting is legal, but in the case of Long Branch, a county magistrate held that the association had to right to betting privileges and the matter is to be threshed out in a higher court. The Dominion Government levies no taxes against race trades, except the business tax to which all revenue producing enterprises are subjected to. The federal government, however, does regulate the amount that may be taken from the pools by a racing association and allows a sliding scale from seven per cent to three per cent, according to the amount of the pool. The bigger the pool the smaller the percentage. Race track taxes and license fees come under the prerogative of the provincial Governments and their regulations vary. ONTARIO TAXES. As far as Ontario is concerned the taxes, license fees and amusement levies are as follows : 1. Amusement tax of twenty-five cents for every person entering the grounds and comes under the amusement tax act. 2. Under the corporation tax act a license fee of ,500 per day is required from half-mile tracks and ,500 from mile ovals. 3. Under the corporation tax act five per cent of the total pool on each race is collected. The collection of the admission tax is checked at the gates by representatives of the Ontario Government. Their men, before the prices on each race are posted, check the pool to see that there is no funny work while the Dominion Government men examine the pool sheets to see that no more than the permitted percentage is taken off by the association. There is, therefore, a double check on the count, which protects both the Government and the patrons holding winning tickets as well. Before being regulated by government enactment, it was commonly believed that at least twenty per cent and, possibly more, was deducted by the various jockey clubs. "Whether this was so or not will probably never be determined. In Ontario there are seven mile tracks and three half-mile ovals. The larger courses are Woodbine, Thorncliffe, Hamilton, Fort Erie, Kenilworth and Devonshire. While the Con-naught Park headquarters are in Ottawa, the track is in the province of Quebec and pays the Quebec taxes, which differ from those of Ontario. The half-mile tracks in the province are Dufferin, Long Branch and Niagara Falls. Both varieties of tracks are allowed under federal laws to hold two race meetings per year with an interval of at least fifteen days between each meeting, and all except Dufferin Park have exercised the fullest privileges of their charters. There have always been two meetings eacli year at Dufferin Park, but since Hillcrest, now the site of the Toronto transportation work shops, ceased to operate, one meeting at Dufferin has always operated under the charter of the Metropolitan Racing Association and the other under the Toronto Driving Club, thus keeping both charters alive. When Long Branch ran its first meeting, it did so under the charter of the National Sporting Club. To prevent any interference with the second meeting at the course while the validity of the National Sporting Club is being tested in the higher court, the Long Branch owners decided to use the Metro- politan charter, which had another seven days coming to it Whether the remaining seven days due the Toronto Driving Club could be used again this year at Long Branch or Dufferin Park, two meetings have already been held at each course, is open to question. Whether license fees now collected are too heavy to permit of profit to racing associations or not is one for those interested to thresh out. The ordinary person believes that a fair tax should be paid by all, but few want them throttled out of existence by unfair taxation. The matter of racing and betting is a matter that rests with tho House of Commons at Ottawa and until such time as the representatives of the whole people there decide that it should be abolished, provincial governments should give Ontario jockey clubs the right to do as the Dominion government permits under their charters. In the meantime, in the light of business done at Dufferin Park and Long Branch, it would seem that the big tracks are being discriminated against If ..the license for half-milers is increased to ,500, as suggested, Dufferin Park and Long Branch might survive, but would Niagara Falls? A fairer way would be to grade the license according to the attendance and betting.


Persistent Link: https://drf.uky.edu/catalog/1920s/drf1924111101/drf1924111101_3_2
Local Identifier: drf1924111101_3_2
Library of Congress Record: https://lccn.loc.gov/unk82075800