Business and occupation (B&O) tax rate increase for Contests of Chance ($50,000 or more a year) and Parimutuel Wagering

Issue Date

July 01, 2023

Intended audience: Businesses operating contests chance and parimutuel wagering.

Effective July 1, 2023, the tax rate imposed on businesses operating Contests of Chance ($50,000 a year or greater) increases from 1.63% to 1.7% through June 30, 2024, and 1.76% thereafter. The tax rate imposed on businesses engaging in Parimutuel Wagering increases from from .13% to .20% through June 30, 2024, and .26% thereafter.

How do I report my income beginning July 1, 2023?

Gambling Contests of chance (less than $50,000 a year)

If your annual taxable amount from operating Contests of Chance is $50,000 or less a year you will report under the Gambling Contests of Chance ($50,000 or less) classification at a rate of 1.5%.

Gambling Contests of Chance ($50,000 a year or greater)

If your annual taxable amount from operating Contests of Chance is $50,000 a year or greater you will report under the Gambling Contests of Chance ($50,000 or more a year) classification at a rate of 1.7% through June 30, 2024, and 1.76% thereafter.

Parimutuel Wagering

Persons engaging in Parimutuel Wagering will report under the Parimutuel Wagering classification at a rate of 0.20% through June 30, 2024, and .26% thereafter.