Tuesday, June 09, 2009
Beshear Lays Out Plan For Expanded Gambling
Within days of a June 15th. special legislative session, Governor Steve Beshear has laid out a plan detailing his proposal to allow video lottery terminals at approved horse racing tracks across Kentucky.
Under the plan, a significant portion of revenue generated by video lottery terminals would support horse industry interests, including 14.5% being used to enhance thoroughbred, standardbred and quarter horse interests through purse supplements and other incentives. One percent of the revenue would go to the Equine Breed Authority, which would be established to promote non-racing breeds and economic development opportunities for the horse industry. Each track facility would pay a $25,000 initial application fee plus an additional ten year license fee, with five year renewals, which would generate $360 million for the state's General Fund.
Revenues from the terminals would cover tax reductions associated with income tax credits for state property taxes on cars and active duty military pay exemptions from individual income tax. Beginning January 1, 2010, taxpayers would save an estimated $30 million through a non-refundable individual income tax credit equal to 50%, but not over $500 per tax year, of the state property tax paid on registered motor vehicles. Beginning January 1,2011, all active military pay would be exempt from individual income tax, an estimated savings of $18 million for eligible taxpayers. Additional sales tax relief would be provided for purchases related to the breeding, raising, training or transporting of horses. The exemption would not include barns, automobiles or truck and truck-trailer combinations.
The video lottery terminals would be administered and regulated by the Kentucky Lottery Corporation, who, after initial implementation costs, would be allocated up to $2 million annually for the administration and oversight of the terminals. The video lottery terminals would be placed at approved tracks licensed by the Kentucky Horse Racing Authority, and access to the facilities would be limited to those 21 years of age or older.
Under the plan, a significant portion of revenue generated by video lottery terminals would support horse industry interests, including 14.5% being used to enhance thoroughbred, standardbred and quarter horse interests through purse supplements and other incentives. One percent of the revenue would go to the Equine Breed Authority, which would be established to promote non-racing breeds and economic development opportunities for the horse industry. Each track facility would pay a $25,000 initial application fee plus an additional ten year license fee, with five year renewals, which would generate $360 million for the state's General Fund.
Revenues from the terminals would cover tax reductions associated with income tax credits for state property taxes on cars and active duty military pay exemptions from individual income tax. Beginning January 1, 2010, taxpayers would save an estimated $30 million through a non-refundable individual income tax credit equal to 50%, but not over $500 per tax year, of the state property tax paid on registered motor vehicles. Beginning January 1,2011, all active military pay would be exempt from individual income tax, an estimated savings of $18 million for eligible taxpayers. Additional sales tax relief would be provided for purchases related to the breeding, raising, training or transporting of horses. The exemption would not include barns, automobiles or truck and truck-trailer combinations.
The video lottery terminals would be administered and regulated by the Kentucky Lottery Corporation, who, after initial implementation costs, would be allocated up to $2 million annually for the administration and oversight of the terminals. The video lottery terminals would be placed at approved tracks licensed by the Kentucky Horse Racing Authority, and access to the facilities would be limited to those 21 years of age or older.
# posted by Homer Owens @ 6:03 PM 
