Kentucky tax bill advances

The Kentucky House of Representatives passed a sweeping tax bill on Friday that would divert taxes on stud fees from the state budget to breeding programs for horses, including Thoroughbreds.

The bill passed the House by a 96-4 vote. The legislation, which was supported by Gov. Ernie Fletcher, now will go to the state Senate, where it is expected to pass.

The breeding programs will use money from the 6 percent sales tax on stud fees to create awards for Kentucky horse breeders.

Supporters of the legislation, which include the horse lobbying organization Kentucky Equine Education Project, contend that Kentucky needs a breeding program to compete with other states for business.

The sales tax on stud fees generated $14 million in revenue for the state budget in 2004. That money would go to three breeding programs, with 80 percent to Thoroughbred breeders, 13 percent for Standardbreds, and 7 percent to other horse breeds.