03/12/2015 10:02AM

Kentucky Senate passes Breeders' Cup tax exemption

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LEXINGTON, Ky. – A bill exempting wagers from any state taxes during the two-day Breeders’ Cup event at Keeneland in Lexington on Oct. 30-31 was passed late Wednesday in the Kentucky Senate and sent to Gov. Steve Beshear.

Following a House vote to approve the legislation last week, the Senate passed the bill by a vote of 30-5, and Beshear is widely expected to sign it. The legislature had previously passed legislation exempting wagers from states taxes during the Breeders’ Cup events held at Churchill Downs, and other Breeders’ Cup host states have approved similar bills.

The bill will allow Keeneland and the Breeders’ Cup to retain the 1.5 percent state tax on wagers during the two-day event. It also will exempt all bets placed over the two days from a calculation used to determine whether bets at Keeneland throughout 2015 are taxed at a 3.5 percent rate or 1.5 percent rate. The threshold for the higher tax is $1.2 million in average ontrack handle, and Keeneland’s average handle is typically just below that threshold.