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Tax-Cut Bill That Would Remove Withholding Tax Passes Senate May 18, 2003

The U.S. Senate Thursday passed a $350-billion tax-cut bill that includes a provision to remove the 30% withholding tax on winning pari-mutuel wagers placed by foreigners through U.S. pools.

Currently, foreign tracks, such as Woodbine in Canada, do not offer common-pool wagering with U.S. tracks because of the 30% withholding. Elimination of tax would allow foreign tracks to bet into U.S. pools.

Congress will now try and reconcile the bill with the $550 billion tax-cut bill passed by the House of Representatives last week, which does not include the withholding tax provision.

The National Thoroughbred Racing Association has put the elimination of the withholding tax near the top of its legislative priority list. However, even if the stipulation is passed, additional work must be done because of protectionist laws in other countries, NTRA deputy commissioner Greg Avioli said last week.

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