2022 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 -- Order of disbursements -- Two-day international horse racing event.
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138.510 Taxes on pari-mutuel wagering on live racing and telephone account,
intertrack, and interstate wagering -- Exemptions -- Uses of tax revenue -Order of disbursements -- Two-day international horse racing event.
(1)
(a)
(b)
(c)
(d)
Before August 1, 2022, except as provided in paragraph (e) of this subsection
and subsection (3) of this section, an excise tax is imposed on all tracks
conducting pari-mutuel wagering on live racing under the jurisdiction of the
commission as follows:
1.
For each track with a daily average live handle of one million two
hundred thousand dollars ($1,200,000) or above, the tax shall be in the
amount of three and one-half percent (3.5%) of all money wagered on
live races at the track during the fiscal year; and
2.
For each track with a daily average live handle under one million two
hundred thousand dollars ($1,200,000), the tax shall be one and one-half
percent (1.5%) of all money wagered on live races at the track during the
fiscal year.
Beginning August 1, 2022, the excise tax imposed on all tracks conducting
pari-mutuel wagering on live racing under jurisdiction of the commission shall
be one and one-half percent (1.5%) of all money wagered on live races at the
track during the fiscal year.
Beginning on April 1, 2014, an excise tax is imposed on all tracks conducting
pari-mutuel wagering on historical horse races under the jurisdiction of the
commission at a rate of one and one-half percent (1.5%) of all money wagered
on historical horse races at the track during the fiscal year.
Money shall be deducted from the tax paid under paragraphs (a), (b), and (c)
of this subsection and deposited as follows:
1.
a.
Before August 1, 2022, an amount equal to three-quarters of one
percent (0.75%) of all money wagered on live races and historical
horse races at the track for Thoroughbred racing shall be deposited
in the Thoroughbred development fund established in KRS
230.400; and
b.
Beginning August 1, 2022, an amount equal to three-quarters of
one percent (0.75%) of all money wagered on live races and
historical horse races at the track for Thoroughbred racing shall be
deposited in the Thoroughbred development fund established in
KRS 230.400 until forty-five million dollars ($45,000,000) has
been deposited during a fiscal year, at which point the amount
deposited in the fund shall decrease to four-tenths of one percent
(0.4%) of all money wagered on live and historical horse races at
the track for Thoroughbred racing for the remainder of the fiscal
year;
2.
a.
Before August 1, 2022, an amount equal to one percent (1%) of all
money wagered on live races and historical horse races at the track
for harness racing shall be deposited in the Kentucky standardbred
3.
4.
development fund established in KRS 230.770. Beginning August
1, 2022, an amount equal to one percent (1%) of all money
wagered on live races at the track for harness racing shall be
deposited in the Kentucky standardbred development fund until a
total of twenty million dollars ($20,000,000) has been deposited
during a fiscal year from this subparagraph, at which point the
amount deposited shall decrease to four-tenths of one percent
(0.4%) of all money wagered for the remainder of the fiscal year;
and
b.
Beginning August 1, 2022, an amount equal to one percent (1%) of
all money wagered on historical horse races at the track for harness
racing shall be distributed in the exact amounts based upon
contracts between the parties that have been filed with the
commission, but at least one-half (1/2) of the funds shall be
deposited into the Kentucky standardbred development fund
established in KRS 230.770 until a total of twenty million dollars
($20,000,000) has been deposited into the Kentucky standardbred
development fund during a fiscal year from this subparagraph, at
which point the amount deposited in this subdivision shall
decrease to four-tenths of one percent (0.4%) of all money
wagered for the remainder of the fiscal year. The commission shall
provide the department all information necessary from the
contracts in order for the funds in this subparagraph to be
distributed;
An amount equal to one percent (1%) of all money wagered on live
races and historical horse races at the track for quarter horse, paint horse,
Appaloosa, and Arabian horse racing shall be deposited in the Kentucky
quarter horse, paint horse, Appaloosa, and Arabian development fund
established by KRS 230.445;
An amount equal to two-tenths of one percent (0.2%) of all money
wagered on live races and historical horse races at the track shall be paid
out in equal amounts as follows:
a.
To the equine industry program trust and revolving fund
established by KRS 230.550 to support the Equine Industry
Program at the University of Louisville, except that the amount
deposited from money wagered on historical horse races in any
fiscal year shall not exceed eight hundred fifty thousand dollars
($850,000);
b.
To the University of Kentucky for equine industry programs at the
university, except that the amount paid from money wagered on
historical horse races in any fiscal year shall not exceed four
hundred thousand dollars ($400,000);
c.
To the Bluegrass Community and Technical College for the
provision of equine industry programs by the system, except that
5.
6.
the amount paid from money wagered on historical horse races in
any fiscal year shall not exceed two hundred fifty thousand dollars
($250,000);
d.
Amounts remaining from money wagered on historical horse races
in a fiscal year after payments are made in accordance with
subdivisions a., b., and c. of this subparagraph shall be distributed
in equal amounts to:
i.
The Kentucky Thoroughbred breeders incentive fund
established in KRS 230.800, in an amount not to exceed four
hundred thousand dollars ($400,000); and
ii. The Kentucky standardbred breeders incentive fund
established in KRS 230.802, in an amount not to exceed one
hundred thousand dollars ($100,000); and
e.
Any amounts remaining from money wagered on historical horse
races in a fiscal year after payments are made in accordance with
subdivisions a., b., c., and d. of this subparagraph shall be paid to
the general fund;
a.
An amount equal to one-tenth of one percent (0.1%) of all money
wagered on live races and historical horse races at the track shall
be deposited in a trust and revolving fund to be used for the
construction, expansion, or renovation of facilities or the purchase
of equipment for equine programs at state universities, except that
the amount deposited from money wagered on historical horse
races in any fiscal year shall not exceed three hundred twenty
thousand dollars ($320,000).
b.
These funds shall not be used for salaries or for operating funds for
teaching, research, or administration. Funds allocated under this
subparagraph shall not replace other funds for capital purposes or
operation of equine programs at state universities.
c.
The Kentucky Council on Postsecondary Education shall serve as
the administrative agent and shall establish an advisory committee
of interested parties, including all universities with established
equine programs, to evaluate proposals and make
recommendations for the awarding of funds.
d.
The Kentucky Council on Postsecondary Education may
promulgate administrative regulations to establish procedures for
administering the program and criteria for evaluating and awarding
grants; and
An amount equal to one-tenth of one percent (0.1%) of all money
wagered on live races and historical horse races shall be distributed to
the commission to support equine drug testing as provided in KRS
230.265(3), except that the amount deposited from money wagered on
historical horse races in any fiscal year shall not exceed three hundred
(e)
(2)
(a)
(b)
(c)
(d)
twenty thousand dollars ($320,000).
The excise tax imposed by paragraphs (a) and (b) of this subsection shall not
apply to pari-mutuel wagering on live harness racing at a county fair.
Except as provided in paragraph (c) of this subsection, an excise tax is
imposed on:
1.
All tracks conducting telephone account wagering;
2.
All tracks participating as receiving tracks in intertrack wagering under
the jurisdiction of the commission; and
3.
All tracks participating as receiving tracks displaying simulcasts and
conducting interstate wagering thereon.
1.
Before August 1, 2022, 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.
2.
Beginning August 1, 2022, the tax shall be one and one-half percent
(1.5%) of all money wagered on races as provided in paragraph (a) of
this subsection during the fiscal year.
A noncontiguous track facility approved by the commission on or after
January 1, 1999, shall be exempt from the tax imposed under this subsection,
if the facility is established and operated by a licensed track which has a total
annual handle on live racing of two hundred fifty thousand dollars ($250,000)
or less. The amount of money exempted under this paragraph shall be retained
by the noncontiguous track facility, KRS 230.3771 and 230.378
notwithstanding.
Money shall be deducted from the tax paid under paragraphs (a) and (b) of
this subsection as follows:
1.
An amount equal to one percent (1%) of the amount wagered shall be
deposited as follows:
a.
In the Thoroughbred development fund established in KRS
230.400 if the host track is conducting a Thoroughbred race
meeting or the interstate wagering is conducted on a Thoroughbred
race meeting;
b.
In the Kentucky standardbred development fund established in
KRS 230.770, if the host track is conducting a harness race
meeting or the interstate wagering is conducted on a harness race
meeting; or
c.
In the Kentucky quarter horse, paint horse, Appaloosa, and
Arabian development fund established by KRS 230.445, if the host
track is conducting a quarter horse, paint horse, Appaloosa, or
Arabian horse race meeting or the interstate wagering is conducted
on a quarter horse, paint horse, Appaloosa, or Arabian horse race
meeting;
2.
An amount equal to twenty-five thousandths of one percent (0.025%) of
(3)
(4)
the amount wagered shall be allocated to the equine industry program
trust and revolving fund established by KRS 230.550 to be used to
support the Equine Industry Program at the University of Louisville;
3.
An amount equal to one-twentieth of one percent (0.05%) of the amount
wagered shall be deposited in a trust and revolving fund to be used for
the construction, expansion, or renovation of facilities or the purchase of
equipment for equine programs at state universities, as detailed in
subsection (1)(d)5. of this section; and
4.
An amount equal to one-twentieth of one percent (0.05%) of the amount
wagered shall be distributed to the commission to support equine drug
testing as provided in KRS 230.265(3).
If a host track in this state is the location for the conduct of a two (2) day
international horse racing event that distributes in excess of a total of twenty million
dollars ($20,000,000) in purses and awards:
(a) The excise tax imposed by subsection (1)(a) and (b) of this section shall not
apply to money wagered at the track on live races conducted at the track
during the two (2) day international horse racing event; and
(b) Amounts wagered at the track on live races conducted at the track during the
two (2) day international horse racing event shall not be included in
calculating the daily average live handle for purposes of subsection (1) of this
section.
The taxes imposed by this section shall be paid, collected, and administered as
provided in KRS 138.530.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 124, sec. 4, effective July 14, 2022. -- Amended
2018 Ky. Acts ch. 12, sec. 1, effective July 14, 2018. -- Amended 2015 Ky Acts ch.
4, sec. 1, effective March 17, 2015; and ch. 47, sec. 5, effective June 24, 2015. -Amended 2014 Ky. Acts ch. 102, sec. 7, effective April 10, 2014. -- 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, sec. 107, effective June
26, 2009. -- Amended 2005 Ky. Acts ch. 106, sec. 6, effective June 20, 2005. -Amended 2004 Ky. Acts ch. 191, sec. 48, effective July 13, 2004. -- Amended 2000
Ky. Acts ch. 447, sec. 2, effective July 14, 2000. -- Amended 1997 (1st Extra. Sess.)
Ky. Acts ch. 1, sec. 43, effective May 30, 1997. -- Amended 1994 Ky. Acts ch. 114,
sec. 1, effective July 15, 1994; ch. 272, sec. 2, effective July 15, 1994; and ch. 438,
sec. 5, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 109, sec. 7, effective
March 30, 1992; and ch. 194, sec. 1, effective July 14, 1992. -- Amended 1990 Ky.
Acts ch. 159, sec. 2, effective July 13, 1990. -- 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 15, 1986. -- Amended 1984 Ky. Acts ch.
240, sec. 2, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 100, sec. 8,
effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 190, sec. 2, effective June 17,
1978. -- Amended 1976 Ky. Acts ch. 343, sec. 2. -- Amended 1970 Ky. Acts ch. 258,
sec. 1. -- Amended 1956 Ky. Acts ch. 13, sec. 1, effective February 3, 1956. -Amended 1954 Ky. Acts ch. 76, sec. 1. -- Created 1948 Ky. Acts ch. 35, sec. 1.
Legislative Research Commission Note (4/10/2014). 2014 Ky. Acts ch. 102, sec. 39
provides that the amendments to this statute made in 2014 Ky. Acts ch. 102, sec. 7,
shall apply retroactively beginning September 1, 2011.
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
changed to "subsection (3)" under KRS 7.136(1). 1994 Ky. Acts ch. 438, sec. 5,
broke down the prior subsection (2) into subsections (2) and (3), and the reference to
fiscal year remained in the resulting subsection (3), but the necessary adjustment to
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.
Where a conflict exists, the Act which was last enacted by the General Assembly
prevails, pursuant to KRS 446.250.
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