Kentucky Not Authorized to Tax Betting on Historical Horse Racing

Tuesday, February 25th, 2014

 
 
Share
Link
Kentucky
General

The Kentucky Supreme Court recently ruled that the Department of Revenue ("Department") could not apply tax to bets on "historical horse racing."

Members of Kentucky's horse racing industry wanted to provide devices, similar to slot machines, for betting on historical horse races. Historical horse races are races that have already been run at approved racing facilities. The devices present the races on video displays, and people place bets at those devices. These devices identify horses only by number and give no information by which bettors can identify the time or place the real race occurred. The devices do provide some statistical data on the horses.

Kentucky taxes bets on live horse races at certain tracks. The Department had amended its regulations to extend the application of this tax to bets on historical horse racing. The Department argued that historical horse races were "live" because the bettor did not know their outcome at the time he or she placed the bet.

The Court ruled that the Department could not tax bets on historical horse racing. The law that imposed tax on bets specifically applied to bets on live races. The fact that the bettor did not know the outcome of a historical race when he or she placed the bet did not make a historical race "live." The common use of the term "live" did not include recorded events. Because historical races were not live races, the Department could not tax bets on these races.

http://opinions.kycourts.net/sc/2012-SC-000415-DG.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...