The horse in Alcudia suffered "minor injuries".
Replacing the horse-drawn carriages with electric carriages would mean that "all parties will win out".
Carriage drivers formed an association last year.
The carriage drivers say that the horses are in good condition.
The neighbourhood police have forwarded the report.
The Progreso en Verde party is keeping up the pressure to end horse carriages in Palma.
Leaving a buggy without a driver is an infringement.
Animal-rights party alleges that the town hall is giving favourable treatment to buggy drivers.
The high in Palma was 39C on Wednesday. There was a fire on scrub land, the police took action against horse-carriage operators.
Guillermo Amengual has frequently denounced Palma town hall's lack of action.
The tariffs for carriage rides have been frozen since 2007.
The incident occurred on the calle Manacor in Palma.
The town hall won't ban horse carriages, but it will not issue new licences and so gradually the carriages will be replaced.
"Up to now absolutely nothing has changed and the horses have suffered another summer of exploitation."
An option of buying out the licences has been ruled out on the grounds that Palma town hall couldn't afford to.
A switch in location has to take account of the volume of tourists and concerns that horses might be frightened.
Controls have intensified over the past three weeks in order, for example, to verify the hours that horses are working.
It would seem that the horse suddenly bolted, crashed into a wall and was killed.