HB 1447-S - DIGEST

(DIGEST AS PASSED LEGISLATURE)

     Authorizes tax exemptions related to thoroughbred horses.

     Declares that chapter 82.04 RCW does not apply to amounts received for racing, raising, riding, exercising, grooming, breeding, training, or selling thoroughbred race horses, including but not limited to amounts received from purse winnings or awards.

VETO MESSAGE ON HB 1447-S

                   April 3, 1998

To the Honorable Speaker and Members,

  The House of Representatives of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval, Substitute House Bill No. 1447 entitled:

"AN ACT Relating to tax exemptions related to thoroughbred horses;"

     SHB 1447 would exempt from the business and occupations tax all amounts received for "racing, raising, riding, exercising, grooming, breeding, training, or selling thoroughbred race horses, including but not limited to amounts received from purse winnings or awards."

     Under this bill, essentially all activity related to thoroughbred race horses would be exempt from tax.  While I agree with assisting and encouraging industries that may be struggling, this bill would go too far.  The industry would pay no general business tax for the government services it receives.  For those with gross income below $24,000, who may have the hardest time paying taxes, there is already a 100% B&O tax exemption.

     For these reasons, I have vetoed Substitute House Bill No. 1447 in its entirety.

                   Respectfully submitted,

                   Gary Locke

                   Governor