Establishing an equine industry tax credit, allowing the horse racing commission to impose a fee, and using equine industry sales tax revenues for federal regulatory compliance.

SB 5610 creates a dedicated account to cover federal compliance costs for Washington's horse racing industry. It allows the Horse Racing Commission to collect fees from the industry to pay federal fees under the Horseracing Integrity and Safety Act, and requires annual transfers of specific tax revenues from class 1 racing associations (like those from parimutuel and sales taxes) into this account. The funds can only be used to pay federal regulatory fees or direct compliance costs, not for general state purposes. This bill directly affects horse racing associations that collect these taxes and the state treasurer, who handles the fund transfers. The account is restricted to federal compliance costs, with no tax credit or new taxes created.