BETTORS TO PAY “TOTE” TAX

Sun (Auckland), Volume IV, Issue 1047, 11 August 1930, Page 1

BETTORS TO PAY “TOTE” TAX

RACING PRESIDENT’S STATEMENT

AUCKLAND CLUB'S BURDEN

£62,000 PAID IN TAXES LAST YEAR

rE statement that the proposed additional totalisator taxation would fall primarily on the investor, and that racing clubs would have to pay heavily (to the extent of .£BOO in the case of the Auckland Racing Club) on the new amusement tax, was made by Sir Edwin Mitchelson, at today’s annual meeting of the Auckland Racing Club.

Last season the club paid more than £65,000 in taxation and rates. •‘The totalisator investments during the past year were slightly in excess of the previous season. It is, however, difficult to predict what may be the position at the end of tho present year's operations, as it is at present impossible to gauge tho result of the dovernment's proposed increased taxation on racing clubs throughout the Dominion,” said Sir Edwin, in the course of his presidential address to members. DECREASED TURNOVER

'The increase on the totalisator tax from 10 per cent, to 12J per cent, will primarily fall on the investors, but ivill probably decrease the amount of turnover on the machine. If such be the case the imposition of the extra tax must react on racing clubs, causing diminished revenue which in turn will most certainly bring about lower prize money. 'Reduced attendances may also be looked for, as well as smaller fields of horses, and the consequent drop in revenue will probably involve many racing clubs, particularly the smaller ones, in great loss, at the same time reacting against the State. BETTING WITH BOOKMAKERS “A further serious consequence will he a tendency to increase betting with bookmakers, who even under existing circumstances are reaping a great harvest and contribute little toward the revenue of the State. If the Dominion is to pay its way Increased taxation is necessary, but apart altogether from the question of class taxation, great care should be exercised in order to save those who are already contributing so heavily. “This is now much irl evidence by the large number of horses that are being annually taken to Australia to race. Owners state that horses can he taken to the Commonwealth more comfortably and at less cost than from Wellington to Auckland or vice versa by rail. This should not be so,

and the Railway Department appears to be most remiss in this respect. EFFECT OF AMUSEMENT-TAX “The increased amusement-tax will also fall heavily on all racing clubs, and will affect this club to the extent of from £7OO to £SOO a year. “During the year under review the Government received from this club taxation amounting to £62,954 15s 2d,

the club receiving the usual rebate of £250. Local rates and water cost £2,284 17s 9d, making a total for the year in taxation and rates of £65,239 12s lid. This amount will, of course, be very largely augmented if the Government proposals are given effect to, and must prove a very serious drain on the resources of the racing public. “The passing of the proposed amendment to the Gaming Act should have the effect of increasing the State's revenue from the totalisator, and may ease the position slightly for racing clubs by diverting the betting from the illegal bookmaker to the legitimate channels of the totalisator."