Thayer, Koenig Co-Chair HHR Taxation Task Force

Following legislation protecting historical horse racing games in Kentucky being signed into law in February, a special committee in the Kentucky General Assembly has been formed to study the taxes racetracks pay to the state from HHR.

The Pari-Mutuel Wagering Taxation Task Force will be co-chaired by Sen. Damon Thayer and Rep. Adam Koenig. The committee will "study the taxes and rates related to horse racing, the impact that changing the rates would have, and the funds relating to the horse industry which receive historical horse racing tax receipts (and) determine if any changes should be made," according to the state's legislature website.

ANGST: Kentucky Task Force to Examine HHR Tax Rate

Senate Bill 120, signed into law by Kentucky Gov. Andy Beshear Feb. 22, updated the state's definition of pari-mutuel wagering to specifically include HHR games. A state Supreme Court decision last September had determined that at least one brand of HHR was not pari-mutuel.

Several state Representatives who were on the fence but voted in favor of HHR said they would push for an increased tax. The study of the tax structure was agreed to by Kentucky racetracks in order to push SB120 through.

The Kentucky Equine Education Project, Kentucky's equine economic advocate, released the following statement May 25 on the appointment of the Pari-Mutuel Wagering Taxation Task Force: 

"The Kentucky Equine Education Project commends the appointment of the Pari-Mutuel Wagering Taxation Task Force, the first step in ensuring an equitable tax rate for historical horse racing that will result in increased revenue for the state and promote continued growth for Kentucky's nation-leading horse industry. 

"During the legislative session when the preservation of HHR was discussed, Kentucky's horse industry pledged to work with the legislature to assess the tax structure of HHR, how those funds are allocated, what the impact would be on the industry and Kentucky's economy if the tax rates are changed, and determine if any changes should be made to the existing structure.

"KEEP stands ready to work with the task force and be part of the conversation on HHR to ensure that entire horse industry—all breeds and disciplines—continues to see benefit from HHR through incentive funds and other state programs. Additionally, it is paramount that changes to the tax structure of HHR are not detrimental to the horse industry's 60,000 direct and indirect jobs and its $6.5 billion impact on Kentucky's economy. KEEP looks forward to working closely with the task force to accomplish these goals. 

"KEEP extends its gratitude to Rep. Matt Koch and Rep. Ruth Ann Palumbo for their legislative efforts to establish this task force."

The other legislative members of the task force are Julie Raque Adams, Christian McDaniel, Stephen West, Jonathan Dixon, Al Gentry, Matthew Koch, and Jason Petrie.