The Battalion. (College Station, Tex.) 1893-current, May 01, 1991, Image 3

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[Wednesday, May 1,1991
State & Local
The
3
Horse race tracks
look for break
Tax cut bill gallops from House to Senate
AUSTIN (AP) — A proposal to
cut the state tax on horse racing
by up to 80 percent was sent to
the Senate Tuesday, and its
House sponsor said he is opti
mistic.
"Hopefully, they will move it
out expeditiously," said Rep.
Hugo Berlanga, D-Corpus
Christi, after the House gave the
bill final approval on a 104-37
vote.
Berlanga and other racing sup
porters argue that the tax cut is
needed to spark construction of
the three big, Churchill Downs-
style Class 1 tracks envisioned
for Dallas-Fort Worth, Houston
and San Antonio.
Horsemen say the current 5
percent tax on each dollar wa
gered is so high, it makes build
ing and operating a $100 million
Class 1 track unprofitable.
Berlanga's bill, which counted
House Speaker Gib Lewis
among its co-sponsors, would
lower the tax to a sliding scale
that begins at 1 percent on the
first $100 million wagered at a
track annually. The levy grad
ually would rise to 5 percent on
wagers over $400 million a year.
The measure also would per
mit "simulcasting" — allowing
bettors to go to a track and place
wagers there on televised races
being run at other locations.
Gov. Ann Richards supports
lowering the tax, her press secre
tary Bill Cryer said.
"She's in favor of it generally,"
Cryer said. "Her basic goal in the
horse racing bill is to get those
Class 1 tracks off the ground."
Berlanga said the Senate in the
past had been more supportive
than the House of lowering the
tax rate.
The large House majority that
voted for the tax cut should send
a message to senators, he said.
"The House has sent a very
strong, clear signal of support,"
he said.
Berlanga said other states tax
racing at a much lower rate than
5 percent, adding that "5 percent
of nothing is nothing."
But opponents contend that
lowering the tax would break a
promise to voters, since the rac
ing industry said before the 1987
referendum that it could make a
profit with the 5 percent tax.
"This is what we call in flying
parlance a sucker hole," said
Rep. A1 Price, D-Beaumont, a re
tired airline pilot. "When you
think you see a hole in the
clouds and you turn there to get
out of the weather and all of a
sudden it closes on you.
"That's what we put the peo
ple of Texas through," he said.
"We played them for suckers "
Awards honor faculty and former students
The Annual Faculty Meeting and Association of Former Stu
dents Distinguished Achievment Awards Ceremony will be
from 1:30 to 5 p.m. today in Rudder theater.
University President William Mobley and Provost E. Dean
Gage will speak during the ceremony, and 22 awards will be
presented in the areas of teaching, research, student relations,
continuing education, staff and administration.
RICHARD S. JAMES/The Battalion
GOAL!
Kim Winkler, a sophomore biomedical science major from Taylor, prac
tices kicking a soccer ball. Winkler was practicing diligently Tuesday
morning in the Southwood Valley Athletic Park for an exam on kicking in
her beginning soccer kinesiology class.
Coastal residents encourage resort bill
AUSTIN (AP) — Coastal resi
dents told a Flouse committee
Tuesday they need the jobs a
proposed $2.5 billion resort on
South Padre Island could bring,
but environmentalists warned
against a bill to boost the devel
opment.
"If this 72nd Legislature
should pass this legislation and
let this great national and state
treasure give way to greed, this
Legislature will live in history as
the Legislature that destroyed
this state and national treasure,"
said former U.S. Sen. Ralph Yar
borough, D-Texas.
Yarborough introduced the
1957 legislation proposing cre
ation of the Padre Island Na
tional Seashore.
The bill before the House En
vironmental Affairs Committee
would create coastal conserva
tion districts. The districts could
sell tax-exempt bonds and levy
taxes for public improvements.
The measure has been called
the "American General bill," be
cause American General Insur
ance of Houston envisions a
3,000-acre project on South
Padre Island. It would include a
resort complex including such
recreational facilities as condo
miniums, boat harbors and golf
courses.
The proposed resort area, now
undeveloped, is on the northern
part of island, across the Laguna
Madre from Port Mansfield.
The House committee took no
immediate action on the bill,
which passed the Senate last
week. Committee Chairman
Robert Saunders, D-LaGrange,
said the measure must include
strong safeguards to protect the
coastal area.
"That's a pristine area," Rep.
Saunders said." There's no other
place like it, and I think that we
need to make sure that we don't
change that."
Rep. Hugo Berlanga, a Corpus
Christi Democrat and House
sponsor of the bill, said Ameri
can General could proceed with
the project even without the leg
islation. He said the measure
would allow state control of pri
vate developments along the
coast through a special commis
sion.
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Call 696-3196 or
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707 Texas Avenue, Suite 106E
College Station, TX 77840
For Class schedule
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