138.510 Taxes on pari-mutuel wagering on live racing and telephone account, intertrack, and interstate wagering -- Exemptions -- Uses of tax revenue.
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<![CDATA[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. </p>
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