Page 13 - August 2015

Hope in Kansas
The Woodlands racetrack in Kansas City, Kansas, hasn’t hosted live racing since 2008, but longtime Kansas businessman and Las Vegas casino owner Phil Ruffin is giving horsemen
in the Sunflower State hope with his recent purchase of the track for an undisclosed amount.
The owner of Treasure Island Casino and Hotel in Las Vegas, Ruffin also owns two shuttered Greyhound tracks in Kansas. The purchase of The Woodlands, which hosted Greyhound, Thoroughbred and Quarter Horse racing, happened after the Kansas Senate passed a bill in May giving greater financial incentive for a developer to reopen the track.
The recent bill allows 2,800 slot machines, a 600-machine increase compared to a law adopted in 2007. The bill also increases the facility manager’s take of revenue to 64.5 percent from 25 percent, which is equivalent to the amount casinos with slot machines currently get. The state’s portion would be 22 percent, Wyandotte County would receive
2 percent and 10 percent would be earmarked for purses for horse races. With no money set aside
for Greyhound purses, it is unclear whether The Woodlands would conduct Greyhound racing.
Ruffin must apply for new licenses to run a racetrack and casino with the Kansas Racing and Gaming Commission.
The bill was introduced by Sen. Steve Fitzgerald, a Leavenworth Republican. According to Fitzgerald, the bill has strong support to be passed by the Kansas House in the next session, which starts in January.
Ruffin told The Wichita Eagle that he expects to hire 500 to 700 people to operate the Woodlands if it reopens.
Texas Hall of fame
On Sept. 12, the Texas Horse Racing Hall of Fame will honor six individuals and one racehorse who have enriched the tradition and sport of horse racing in Texas. The induction ceremony will take place at Retama Park beginning at 5 p.m. CDT and coincide with the evening’s races.
A silent auction will also be held, and all proceeds from the gala will benefit the Saddle Light Center, Groom Elite and the Race Track Chaplaincies at Lone Star Park, Sam Houston Race Park and Retama Park.
The 2015 inductees are former Texas senator Ken Armbrister, the late Stanley Beard, Lukin Gilliland Sr., Sammy Jackson, and the late Dan Urschel and his wife, Jolene. The Thoroughbred No Le Hace will also be inducted.
Armbrister served two terms in the Texas House of Representatives before being elected to the Texas Senate. During his 20-year tenure in the Senate, he carried the Texas Racing Commission’s first Sunset legislation that stood in place during the formation of the Commission. In 2001, Armbrister was part
of the delegation that visited New York to bring the Breeders’ Cup to Texas. For three legislative sessions, he carried legislation to legalize video lottery terminals at racetracks. Armbrister currently works as a lobbyist with the Texas Star Alliance and resides in Round Rock, Texas.
Beard was born in Houston, and he purchased his first horse in 1947. He served on the Texas Thoroughbred Association (TTA) board of directors from 1986-2000 and served as President of TTA from 1988 to 1989.
Gilliland was a lifelong horse owner, breeder and legal counsel to horse owners and breeders
for a wide range of equine matters. He started breeding Quarter Horses in 1965, and the horses he bred competed in futurities and derbies in Texas, Louisiana, New Mexico, Florida, California and Oklahoma. Gilliland’s homebreds include Grey Daze, the winner of the 2014 TQHA Sale Futurity- RG2. In 1980, Gilliland co-founded Oak Cliff Thoroughbreds. One of the more notable horses produced by Oak Cliff Thoroughbreds was Sunday Silence, who won the 1989 Kentucky Derby-G1 and Preakness Stakes-G1 and earned $4,968,554.
Jackson was a respected member of the racing community throughout the country. He started his career in the racing industry in an unlikely place – the valet lot of Delta Downs Racetrack
– at the age of 16. Thirty years later he would end his career as the Texas Racing Commission’s Deputy Director of Finance and Administration.
Texas ranch owners Dan and Jolene Urschel made a big impression in the horse racing industry in a short period of time. Their horse Pie In The Sky won the 1979 All American Futurity-G1,
and the Urschels also owned renowned winners Mighty Deck Three and Special Effort, Quarter Horse racing’s only Triple Crown winner.
In 1972 a chestnut colt named No Le Hace captured the imagination of San Antonio, partly because of his name but mostly because of what he did on the track. Both the San Antonio Express- News and the San Antonio Light newspapers sent reporters to cover his notable races, including the Louisiana Derby and the Arkansas Derby, both of which No Le Hace won. No Le Hace ran second in the Kentucky Derby and then the Preakness. He was sold to Japanese interests that shipped him to Japan for stud duty.
The JoAnn Weber Distinguished Service Award will be given to Ben Hudson. Hudson has been involved in Quarter Horse racing
for more than four decades and purchased his first registered American Quarter Horse as a teenager in the 1950s. In 1975, Hudson co- founded Track Magazine. In 1992, Hudson was a founding partner of Lone Star Park in Grand Prairie, Texas. He is a Director at Large of the American Quarter Horse Association.
Visit www.txhorseracingmuseumandhalloffame. org for ticket information.
Tax Relief
According to the American Horse Council, the Senate Finance Committee reported out legislation to extend retroactively a number
of tax provisions that are supported by the American Horse Council and will benefit many in the equine industry.
The bill would extend several tax provisions favorable to horse owners, breeders and equine businesses that expired or were reduced at the end of 2014. These include the three-year depreciation for all racehorses, regardless of their age when placed in service.
The bill would extend these various provisions for two years, retroactive to Jan. 1, 2015. This means eligible equine assets, including horses, purchased and/or placed in service at any time in 2015 and 2016 would be eligible for the benefits.
From 2009 through 2014, all racehorses were depreciated over three years regardless of their age when they were placed in service. This provision was passed in 2008 through the efforts of Majority Leader Mitch McConnell (R-KY). This change, which eliminated the 7-year depreciation period for racehorses, expired at the end of 2014.
The Senate bill would extend the three-year recovery period for all racehorses placed in service during 2015 and 2016, regardless of age.
For the last few years, the so-called Section 179 business expense deduction was set at $500,000. This meant that anyone in the
horse business could immediately depreciate up to $500,000 of the cost of any investment in business assets, including horses. The deduction was reduced dollar-for-dollar once investment in all one’s business activities hit $2 million. This provision was not extended by Congress and has reverted to $25,000 for 2015.
The Senate bill would extend the expense deduction at $500,000, with a phase-out at $2 million, for assets, including horses, purchased and placed in service during 2015 and 2016.
Anyone in the horse business could depreciate up to 50 percent of the cost of new property purchased and placed in service in 2014, including horses and other equipment. This is known as “bonus depreciation.” It was restricted to new assets, which meant that the first use of the horse or other property had to begin with the taxpayer. This provision was not extended by Congress and has expired for 2015.
The Senate bill would extend bonus depreciation at 50 percent for the cost of new assets purchased and placed in service during 2015 and 2016.
The Senate tax extender bill must now go to the full Senate for approval and the House of Representatives. Visit www.horsecouncil.org for more information on equine tax laws and the latest on the current tax extender bill.
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