Instant Racing tax being debated
The
Kentucky Supreme Court ruled Thursday that the Kentucky Horse Racing Commission
has the legal authority to regulate instant racing, but that the pari-mutuel
tax, which applies only to "live" racing, cannot be used to collect
state revenues from the games.
Without
action by the legislature to reword the pari-mutuel tax law it appears the
racetracks will take the machine's profits tax free. A revision to the tax law will not only allow the machines to continue generating millions
for the state but will also allow the machines to add money to the Kentucky Standardbred Development
Fund (KSDF), which funds the Kentucky Sires Stakes. The
KSDF is funded, in part, by a percentage of the pari-mutuel taxes collected on all
money wagered on live races at the track for harness racing.
Through
Jan. 31, more than $573 million has been wagered on instant racing machines,
both at thoroughbred racetracks, generating about $8.6 million in taxes. The
tracks have received more than $36 million.
House
Speaker Greg Stumbo has emphasized to lawmakers that a vote to tax instant
racing would not mean a lawmaker is condoning that form of gambling and that is
going to continue. Thus, the question is, are you going to continue to tax
"instant racing" like horse racing or allow the racetracks to operate
the machines tax free.
However, Senate
President Robert Stivers has said more information is needed to determine
if a tax could be passed without making instant racing legal.
He also said
lawmakers may be reluctant to tackle the issue while the lawsuit is ongoing.
Comments
Post a Comment