Governor Steve Beshear has released his long-awaited gambling plan. Or, as his communications staff calls it, “his proposal to authorize the limited use of Video Lottery Terminals (VLTs) at Kentucky horseracing tracks.” AKA, the gubnuh’s gamblin’ plan.
“Kentucky’s signature horseracing industry is in a state of crisis,” Gov. Beshear said. “I believe my proposal will help level the playing field for Kentucky’s horse industry and help retain the 100,000 jobs and $4 billion economic impact that Kentucky enjoys as a result of horseracing. It will also, ultimately, help generate some much-needed funds for the state during these difficult economic times.”
The governor’s office says that each facility would pay an application fee of $25,000 and additional licensing fees that would generate $360 for the state. The licensing period would last ten years and would then include five-year renewal periods. Beyond that, Beshear’s office also says see a lessening of tax liabilities beginning in 2010:
- Beginning Jan. 1, 2010, taxpayers would save an estimated $30 million through a nonrefundable individual income tax credit equal to 50 percent of the state property tax paid on registered motor vehicles, not to exceed $500 per tax
- Beginning Jan. 1, 2011, all active duty military pay would be exempt from individual income tax, an estimated savings of $18 million for eligible taxpayers. Currently the active duty military pay exemption applies only to active duty military pay for military personnel serving in a combat
- Additional sales tax relief would be provided for various purchases related to the breeding, raising, training or transporting of horses, including machinery, feed, farm chemicals and on-farm equine facilities. The exemption does not include barns or automobiles, truck and truck-trailer combinations.
Under the plan, gambling revenue would cover alleged tax reductions with the income tax credit for property taxes on cars, the active duty military pay income tax exemption and sales tax exemptions for the horse industry.
Gambling/slot machines would be regulated by the Kentucky Lottery Corporation and the number of machines would be limited to communities with approved tracks. Facilities would also require local governmental approval for the license application.
Beshear’s plan requires the Lottery Corp to include gross slot machine revenue, net revenue and distribution of funds and expenses in ongoing financial reporting. The Lottery would also be required to set up a monitoring system that audits and regulates all slot machines. After initial costs, the Lottery would receive up to $2 million per year for running the whole thing.
Let’s take a look at the documents released earlier by the gubnuh’s office:
The 151-page draft of the gambling bill:
CLICK TO DOWNLOAD PDF
An overview of slot machines/video lottery terminals:
CLICK TO DOWNLOAD PDF
Slot machine numbers from June 7:
CLICK TO DOWNLOAD PDF
What’s your take on this whole mess, folks? Time to chime in.
4 responses so far ↓
1 Garrett Redmond // Jun 9, 2009 at 7:15 pm
Tax relief for various things relating to horse breeding. Does that mean we shall not pay the current six per cent (6%) tax on stud fees? Hope so, it will be an immediate stimulant for mare owners in KY.
BUT WAIT A MINUTE – isn’t the breeders’ incentive plan, as invented by Sen. Damon Thayer, financed by that tax on stud fees?
Talk about buying votes! What else can we call the crumbs to the military income tax relief and the tax on your car??
I absolutely am not against gambling. I am not a member of the Kentucky Taliban. I am heavily invested in the horse business here. But, if this industry needs a subsidy from slot machines, it will not be long til the slots operators grouse about subsidizing horse racing. Then slots will remain, but racing will die.
2 JR // Jun 9, 2009 at 9:53 pm
NOT ONE DOLLAR TO RETIRED RACEHORSES.
THE WORLDS LEADING PRODUCER OF THOROUGHBREDS DOES NOT TAKE CARE OF ITS’ PRODUCT.
3 Oliver Wendell Douglas // Jun 9, 2009 at 11:24 pm
This is nothing but a scam designed to enrich a small number of racetrack owners at the expense of the good people of Kentucky.
The goat ranch in Franklin whose owners care enough about horse racing to stage four days of racing a year would become 99 percent a slot parlor targeting people from Tennessee and 1 percent a race track.
A 25 percent tax rate is a joke. New York VLTs have an 80 percent tax rate and are operating fine with that tax level.
If the legislature of this commonwealth grants a few wealthy track owners the right to prey on the poor, elderly, affirmed, mentally ill and lonely, they should pay at a minimum a $400 million licensing fee per facility and an 80 percent tax rate like in New York.
These already wealthy track owners will do nothing more than turn around and sell their tracks for hundreds of millions of dollars to gambling kingpins from Nevada and New Jersey and then take their ill-gotten windfall and retire somewhere outside of Kentucky.
4 Richard R // Jun 10, 2009 at 1:40 pm
Where are the studies that show all of the benefits to society (say health care, education, relief from other taxes) from slot machines? I’ll tell you were they are: They are nonexistent. Why is it that in EVERY state that has sold slot machines to its public as a silver bullet for revenues that NONE of the revenue projections has ever been met?
If the government wants the general public to subsidize horse racing in Kentucky then go after their money in a direct fashion; not through the side doors of racetrack owners, slot-machine manufacturers and Frankfort’s special-interest representatives known as the legislature.
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