2009 Kentucky Revised Statutes CHAPTER 138 EXCISE TAXES 138.510 Taxes on pari-mutuel wagering on live racing and telephone account, intertrack, and interstate wagering -- Exemptions -- Uses of tax revenue.
138.510 Taxes on pari-mutuel wagering on live racing and telephone account,
intertrack, and interstate wagering -- Exemptions -- Uses of tax revenue.
(1) (a) Except as provided in paragraphs (b) and (d) of this subsection, an excise tax
is imposed on all tracks conducting pari-mutuel wagering on live racing under <br>the jurisdiction of the commission. <br>1.
For each track with a daily average live handle of one million two <br>hundred thousand dollars ($1,200,000) or above, the tax shall be in the <br>amount of three and one-half percent (3.5%) of all money wagered on <br>live races at the track during the fiscal year.
2.
For each track with a daily average live handle under one million two <br>hundred thousand dollars ($1,200,000), the tax shall be one and one-half <br>percent (1.5%) of all money wagered on live races at the track during the <br>fiscal year.
(b) 1.
If: <br>a.
A track located in this state is the host track for a live one (1) or <br>two (2) day international horse racing event in 2010 that distributes <br>in excess of a total of fifteen million dollars ($15,000,000) in <br>purses during the international horse racing event; and
b.
On or before November 4, 2010, the organization responsible for <br>selecting the location of the same international horse racing event <br>in subsequent years contractually agrees to conduct the <br>international horse racing event at a host track in this state in <br>calendar year 2011 or 2012 or calendar years 2011 and 2012;
then the excise tax imposed by paragraph (a) of this subsection shall not <br>be imposed on pari-mutuel wagering on any live racing conducted <br>during the one (1) or two (2) day international horse racing event held at <br>a host track within this state in calendar years 2010 through 2012.
2.
Beginning January 1, 2013, if the requirements of subparagraph 1. of <br>this paragraph are satisfied, the tax exemption established by <br>subparagraph 1. of this paragraph shall remain in effect for any <br>succeeding one (1) or two (2) day international horse racing event if the <br>event returns within three (3) years of a previously-held international <br>horse racing event.
3.
A minimum of five hundred thousand dollars ($500,000) of the amount <br>that would have been paid to the Commonwealth but for the exemption <br>provided by this paragraph shall be used by the host track to fund <br>undercard races during each international horse racing event.
4.
Notwithstanding paragraph (c) of this subsection, if the requirements of <br>subparagraph 1.a. of this paragraph are satisfied but the requirements of <br>subparagraph 1.b. of this paragraph are not, then the excise tax imposed <br>by paragraph (a) of this subsection shall be imposed on pari-mutuel <br>wagering on any live racing conducted during the one (1) or two (2) day
international horse racing event and the total amount of revenue <br>collected shall be distributed as follows: <br>a.
Eighty percent (80%) shall be deposited into the thoroughbred <br>development fund established in KRS 230.400;
b.
Thirteen percent (13%) shall be deposited into the standardbred <br>development fund established in KRS 230.770; and
c.
Seven percent (7%) shall be deposited into the Kentucky quarter <br>horse, Appaloosa, and Arabian development fund established in <br>KRS 230.445.
(c) Money shall be deducted from the tax paid under paragraph (a) of this
subsection and deposited as follows: <br>1.
An amount equal to three-quarters of one percent (0.75%) of all money <br>wagered on live races at the track for thoroughbred racing shall be <br>deposited in the thoroughbred development fund established in KRS <br>230.400;
2.
An amount equal to one percent (1%) of all money wagered on live <br>races at the track for harness racing shall be deposited in the Kentucky <br>standardbred development fund established in KRS 230.770;
3.
An amount equal to one percent (1%) of all money wagered on live <br>races at the track for quarter horse, Appaloosa, and Arabian horse racing <br>shall be deposited in the Kentucky quarter horse, Appaloosa, and <br>Arabian development fund established by KRS 230.445.
4.
An amount equal to two-tenths of one percent (0.2%) of all money <br>wagered on live races at the track shall be deposited in the equine <br>industry program trust and revolving fund established by KRS 230.550 <br>to support the Equine Industry Program at the University of Louisville;
5.
a.
An amount equal to one-tenth of one percent (0.1%) of all money <br>wagered on live races at the track shall be deposited in a trust and <br>revolving fund to be used for the construction, expansion, or <br>renovation of facilities or the purchase of equipment for equine <br>programs at state universities.
b.
These funds shall not be used for salaries or for operating funds for <br>teaching, research, or administration. Funds allocated under this <br>subparagraph shall not replace other funds for capital purposes or <br>operation of equine programs at state universities.
c.
The Kentucky Council on Postsecondary Education shall serve as <br>the administrative agent and shall establish an advisory committee <br>of interested parties, including all universities with established <br>equine
programs,
to
evaluate
proposals
and
make
recommendations for the awarding of funds.
d.
The Kentucky Council on Postsecondary Education may <br>promulgate administrative regulations to establish procedures for
administering the program and criteria for evaluating and awarding <br>grants; and
6.
An amount equal to one-tenth of one percent (0.1%) of all money <br>wagered on live races shall be distributed to the commission to support <br>equine drug testing as provided in KRS 230.265(3).
(d) The excise tax imposed by paragraph (a) of this subsection shall not apply to
pari-mutuel wagering on live harness racing at a county fair.
(2) (a) Except as provided in paragraphs (c) and (d) of this subsection, an excise tax
is imposed on: <br>1.
All tracks conducting telephone account wagering;
2.
All tracks participating as receiving tracks in intertrack wagering under <br>the jurisdiction of the commission; and
3.
All tracks participating as receiving tracks displaying simulcasts and <br>conducting interstate wagering thereon.
(b) The tax shall be three percent (3%) of all money wagered on races as provided
in paragraph (a) of this subsection during the fiscal year.
(c) A noncontiguous track facility approved by the commission on or after
January 1, 1999, shall be exempt from the tax imposed under this subsection, <br>if the facility is established and operated by a licensed track which has a total <br>annual handle on live racing of two hundred fifty thousand dollars ($250,000) <br>or less. The amount of money exempted under this paragraph shall be retained <br>by the noncontiguous track facility, KRS 230.3771 and 230.378 <br>notwithstanding.
(d) 1.
A track located in this state shall be exempt from the excise tax imposed <br>by paragraph (b) of this subsection on wagers placed on all races <br>conducted at a one (1) or two (2) day international horse racing event if: <br>a.
The international horse racing event is conducted at a host track in <br>this state; and
b.
The host track is exempt from the excise tax during the <br>international horse racing event under subsection (1)(b) of this <br>section.
2.
Notwithstanding paragraph (e) of this subsection, if the host track is not <br>exempt and is taxed pursuant to subsection (1)(b)4. of this section, then <br>the excise tax imposed by paragraphs (a) and (b) of this subsection shall <br>be imposed on wagers placed on all races conducted at the one (1) or <br>two (2) day international horse racing event and the total amount of <br>revenue collected shall be distributed as follows: <br>a.
Eighty percent (80%) shall be deposited into the thoroughbred <br>development fund established in KRS 230.400;
b.
Thirteen percent (13%) shall be deposited into the standardbred <br>development fund established in KRS 230.770; and
c.
Seven percent (7%) shall be deposited into the Kentucky quarter <br>horse, Appaloosa, and Arabian development fund established in <br>KRS 230.445.
(e) Money shall be deducted from the tax paid under paragraphs (a) and (b) of
this subsection as follows: <br>1.
An amount equal to two percent (2%) of the amount wagered shall be <br>deposited as follows: <br>a.
In the thoroughbred development fund established in KRS 230.400 <br>if the host track is conducting a thoroughbred race meeting or the <br>interstate wagering is conducted on a thoroughbred race meeting;
b.
In the Kentucky standardbred development fund established in <br>KRS 230.770, if the host track is conducting a harness race <br>meeting or the interstate wagering is conducted on a harness race <br>meeting; or
c.
In the Kentucky quarter horse, Appaloosa, and Arabian <br>development fund established by KRS 230.445, if the host track is <br>conducting a quarter horse, Appaloosa, or Arabian horse race <br>meeting or the interstate wagering is conducted on a quarter horse, <br>Appaloosa, or Arabian horse race meeting;
2.
An amount equal to one-twentieth of one percent (0.05%) of the amount <br>wagered shall be allocated to the equine industry program trust and <br>revolving fund established by KRS 230.550 to be used to support the <br>Equine Industry Program at the University of Louisville;
3.
An amount equal to one-tenth of one percent (0.1%) of the amount <br>wagered shall be deposited in a trust and revolving fund to be used for <br>the construction, expansion, or renovation of facilities or the purchase of <br>equipment for equine programs at state universities, as detailed in <br>subsection (1)(c)5. of this section; and
4.
An amount equal to one-tenth of one percent (0.1%) of the amount <br>wagered shall be distributed to the commission to support equine drug <br>testing as provided in KRS 230.265(3).
(3) The taxes imposed by this section shall be paid, collected, and administered as
provided in KRS 138.530.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 106, effective July 15, 2010; and ch. 57,
sec. 1, effective July 15, 2010. -- Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, <br>sec. 107, effective June 26, 2009. -- Amended 2005 Ky. Acts ch. 106, sec. 6, <br>effective June 20, 2005. -- Amended 2004 Ky. Acts ch. 191, sec. 48, effective July <br>13, 2004. -- Amended 2000 Ky. Acts ch. 447, sec. 2, effective July 14, 2000. -- <br>Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 43, effective May 30, 1997. -- <br>Amended 1994 Ky. Acts ch. 114, sec. 1, effective July 15, 1994; ch. 272, sec. 2, <br>effective July 15, 1994; and ch. 438, sec. 5, effective July 15, 1994. Amended 1992 <br>Ky. Acts ch. 109, sec. 7, effective March 30, 1992; and ch. 194, sec. 1, effective July <br>14, 1992. -- Amended 1990 Ky. Acts ch. 159, sec. 2, effective July 13, 1990. -- <br>Amended 1988 Ky. Acts ch. 376, sec. 5, effective July 15, 1988. -- Amended 1986
Ky. Acts ch. 215, sec. 1, effective July 15, 1986; and ch. 296, sec. 1, effective July <br>15, 1986. -- Amended 1984 Ky. Acts ch. 240, sec. 2, effective July 13, 1984. -- <br>Amended 1982 Ky. Acts ch. 100, sec. 8, effective July 15, 1982. -- Amended 1978 <br>Ky. Acts ch. 190, sec. 2, effective June 17, 1978. -- Amended 1976 Ky. Acts ch. 343, <br>sec. 2. -- Amended 1970 Ky. Acts ch. 258, sec. 1. -- Amended 1956 Ky. Acts ch. 13, <br>sec. 1, effective February 3, 1956. -- Amended 1954 Ky. Acts ch. 76, sec. 1. -- <br>Created 1948 Ky. Acts ch. 35, sec. 1.
Legislative Research Commission Note (7/15/2010). This section was amended by
2010 Ky. Acts chs. 24 and 57, which do not appear to be in conflict and have been <br>codified together.
Legislative Research Commission Note (7/14/2000). In codifying the 2000 Regular
Session changes to this statute, an existing reference to "subsection (2)" has been <br>changed to "subsection (3)" under KRS 7.136(1). 1994 Ky. Acts ch. 438, sec. 5, <br>broke down the prior subsection (2) into subsections (2) and (3), and the reference to <br>fiscal year remained in the resulting subsection (3), but the necessary adjustment to <br>the reference in subsection (1) was inadvertently overlooked.
Legislative Research Commission Note (7/14/92). This section was amended by two
1992 Acts. Where those Acts are not in conflict, they have been compiled together. <br>Where a conflict exists, the Act which was last enacted by the General Assembly <br>prevails, pursuant to KRS 446.250.
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