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Relating to the deposit and allocation of certain funds to the horse industry escrow account and to the maximum balance of that account.
Estimated Two-year Net Impact to General Revenue Related Funds for HB 2463, Committee
Report 2nd House, Substituted: a negative impact of ($50,000,000) through the biennium ending
August 31, 2021.
HB 2463 would require state sales and use taxes from certain equestrian products and services such as horse feed, tack, storage, etc. into the horse industry escrow account. HB 2463 would allow state horse breed registries to apply for money from the escrow account for any event that furthers the horse industry. This bill would limit the balance in the account to $50 million.
According to the bill author's statement of purpose and intent: "There have been calls to strengthen the racing industry in Texas through the use of incentive funds paid to owners and breeders earning purses. C.S.H.B. 2463 seeks to provide a mechanism for purse matching by requiring certain tax revenue to be deposited to a horse industry escrow account for use as purses."
HB 2463 provides direct taxpayer subsidies to the horse industry, primarily for the horse racing industry. This is antithetical to the principles of limited government and free markets. For these reasons we oppose HB 2463.