(a) Fund.--There is established in the State Treasury the State Racing Fund. For fiscal year 2015-2016, money in the fund is appropriated on a continuing basis to the department for the purposes of administering this chapter. Beginning on July 1, 2016, all money deposited in the fund, except money deposited in restricted accounts, shall be annually appropriated by the General Assembly for the administration and enforcement of this chapter and for the oversight and promotion of horse racing in this Commonwealth. A licensed racing entity that conducts horse race meetings or a secondary pari-mutuel organization shall pay a tax to the Department of Revenue for deposit in the State Racing Fund.

(b) Tax rate.--The tax imposed on a licensed racing entity or secondary pari-mutuel organization shall be 1.5% of the amount wagered each racing day on win, place or show wagers and 2.5% of the total amount on an exotic wager, including an exacta, daily double, quinella and trifecta wager.

(c) Expenditures.--Funds collected under subsection (b) and any interest shall be used as follows:

(1) For the administration and enforcement of this chapter including:

(i) Funds to the commission in an amount appropriated by the General Assembly.

(ii) Funds to the Department of Revenue in an amount appropriated by the General Assembly.

(2) If annual revenue under subsection (b) is sufficient to satisfy the requirement under paragraph (1), the remainder of the money shall be distributed as follows:

(i) Fifty percent shall remain in the State Racing Fund as a carry forward balance to the next fiscal year. Any carry forward balance shall be first applied to the cost of equine testing under section 9374 (relating to costs of enforcement of medication rules or regulations) and, if any still remains, for commission expenses as budgeted by the General Assembly.

(ii) Fifty percent shall be divided equally and distributed as follows:

(A) Twenty-five percent shall be paid by the Department of Revenue from the State Racing Fund for credit to the Pennsylvania Breeding Fund.

(B) Twenty-five percent shall be paid by the Department of Revenue from the State Racing Fund for credit to the Pennsylvania Sire Stakes Fund.

(d) Breakage.--All breakage retained under section 9335 (relating to pari-mutuel pool distribution) by licensed racing entities that conduct horse race meetings shall be distributed in the following manner:

(1) Thirty-seven and one-half percent of the breakage shall be paid to the Department of Revenue for credit to the State Racing Fund.

(2) Sixty-two and one-half percent of the breakage shall be retained by the licensed racing entity.

(e) Other revenues.--The State Racing Fund may also receive moneys from any other source, including, but not limited to appropriations made by the General Assembly.

Cross References. Section 9334 is referred to in sections 9329, 9330, 9331, 9336, 9337, 9344 of this title; sections 13F08, 13F42, 13F43 of Title 4 (Amusements).