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Stewart Reports Racing at Hollywood Has Netted State 0,000,000 Taxes Answers Warrens Assertion* ► That Profits of Californias Largest Track Are Enormous HOLLYWOOD PARK, Inglewood, Calif., | May 23. — Thoroughbred racing at Hollywood Park has enriched the coffers of the state of California with approximately 0,-000,000 in pari-mutuel taxes and considerable over a million in other levies during the 13 meetings held at the Hollywood Turf Clubs plant up to this season. This fact was brought out in general manager J. D. Stewarts answer to the attack made by Gov. Earl Warren on Californias major race courses yesterday when the chief executive was asked to comment on assemblyman Marvin Sherwins proposal to increase the personal exemptions for state income tax purposes and to offset any loss of revenue by imposing higher taxes on liquor and race track wagering. Referring to racing, the Governor had charged that: "The profits made by the largest tracks are not only enormous, they are scandalous. And, unless racing ceases to be a sacred cow in our state government, it will fall on evil days. There is no reason why the state should give a monopoly to the track owners and then make millionaires of them." Stewarts statement follows : "In reply to Gov. Warrens assertions that the large race tracks of California are not paying a fair share of taxes, that their profits are enormous, and are creating millionaires, we at Hollywood Park respectfully wish to call his attention to some facts and figures. "A financial report for the fiscal year which ended March 31, 1953, and which covers the 1952 race meeting, shows that Hollywood Park paid the following in taxes : To the state of California in pari-mutuel taxes and breakage, ,890,468.78; state franchise tax, 05,464.97; employers share in the state and federal payroll taxes, 7,237.90; federal income tax, ,342,000.00; federal admissions taxes, 26,608.61; city admissions taxes, 0,556.25; city and county property taxes, 81,796.79, city racing license, ,000, state auto and truck licenses, 00.00. "The total of these taxes for only one race meeting at Hollywood Park is ,970,333.30. "In contrast to this, to the owners of our track, who consist of 1,650 stockholders, was distributed a total in dividends of ,049,-895. Therefore, for every dollar our stockholders received, the state and other tax collecting agencies were paid almost eight. "Hollywood Park has paid approximately 0,000,000 to the state of California in pari-mutuel taxes and breakage in its 13 race meetings up to this year and considerably over ,000,000 in other taxes. Far from creating millionaires among its stockholders, the 1952 dividends for one of the most successful meetings in our history were approximately 8 per cent based on the replacement cost of the plant and grounds which were recently appraised at 2,500,-000. "We believe that the tremendous return Hollywood Park has made to the state in taxes has been made possible by Hollywood Parks policy that the public must come first. By building and constantly improving one of the largest and most modern racing plants in the world, furnishing many special services to the public and presenting racing on the highest possible plane, we have created a large business volume. This return ► | has made it possible for us to be one of the greatest tax paying assets the state of California now possesses. "Tax rates can reach their maximum point of effectiveness. Unduly burdensome taxes would inevitably result in a decrease of facilities and services to the public to the point where the total tax would be considerably less than the vast sums the state is now receiving from Hollywood Park racing."
