KRS 138.552: Definitions -- Taxes on sports wagering and fixed-odds wagering licensees -

- Reporting requirements.

(1) As used in this section:

(a) "Adjusted gross fixed-odds wagering revenue" means the total sum of wagers

collected on all fixed-odds wagers on live horse racing and all combination of

bets of multiple individual wagers into one (1) bet that includes one (1) or

more fixed -odds wagers on live horse racing, less winnings paid to

participants in the contest and all excise taxes paid pursuant to federal law;

(b) "Adjusted gross sports wagering revenue" means the total sum of wagers

collected on all sporting events, except any combination of bets of multiple

individual wagers into one (1) bet that includes one (1) or more fixed -odds

wagers on l ive horse racing, less winnings paid to participants in the contest

and all excise taxes paid pursuant to federal law;

(c) "Department" means Department of Revenue;

(d) "Fixed-odds wagering" has the same meaning as in KRS 230.210;

(e) "Sporting event" means an event at which two (2) or more persons participate

in athletic contests or an event that takes place in relation to athletic contests

as approved by the corporation, but shall not include horse racing or amateur

youth sports or athletic events in whic h the majority of participants are under

the age of eighteen (18) years;

(f) "Sports wagering" means the wagering conducted under KRS Chapter 230 on

sporting events or portions of sporting events, or on the individual

performance statistics of athletes in a sporting event or combination of

sporting events, in conformance with federal law and as authorized by the

corporation pursuant to KRS Chapter 230; and

(g) "Taxpayer" means any person liable for tax under this section.

(2) An excise tax is imposed on per sons licensed under KRS 230.811 and 230.814 to

conduct:

(a) Sports wagering at a rate of:

1. Nine and three -quarters percent (9.75%) on the adjusted gross sports

wagering revenue on wagers placed at the licensed track; and

2. Fourteen and one-quarter percent (14.25%) on the adjusted gross sports

wagering revenue on wagers placed online via website s or mobile

applications or other off -site technology approved by the Kentucky

Horse Racing and Gaming Corporation; and

(b) Fixed-odds wagering at a rate of:

1. Nine and three -quarters percent (9.75%) on the adjusted gross fixed -

odds wagering revenue of fixed-odds wagers on live horse racing placed

at the licensed track; and

2. Fourteen and one-quarter percent (14.25%) on the adjusted gross fixed -

odds wagering revenue of fixed-odds wagers on live horse racing placed

online via websites or mobile application s or other off -site technology

approved by the Kentucky Horse Racing and Gaming Corporation.

(3) The excise taxes imposed in:

(a) Subsection (2)(a) of this section shall be transferred to the sports wagering

administration fund established in KRS 230.817 a nd appropriated for the

purposes established in that section; and

(b) Subsection (2)(b) of this section shall be transferred to the purse stabilization

fund established in KRS 230.850 and appropriated for the purposes

established in that section.

(4) The department shall enforce the provisions of and collect the taxes and penalties

imposed in this section, and in doing so it shall have the general powers and duties

granted it in KRS Chapters 131 and 135, including the power to enforce, by an

action in the Franklin Circuit Court, the collection of the taxes, penalties, and other

payments imposed or required by this section.

(5) The tax imposed by this section is due and payable to the department monthly and

shall be remitted on or before the twentieth day of the next succeeding calendar

month. If a taxpayer's adjusted gross revenue for a month is a negative number, the

taxpayer may carry over the negative amount to the return filed for the subsequent

month. However, no amount shall be carried over in any perio d more than twelve

(12) months after the month in which the amount carried over was originally due.

(6) (a) Payment shall be accompanied by a return prescribed by the department.

(b) For sports wagering only, the return form shall report, at a minimum:

1. The total sum of wagers collected in person and electronically through a

mobile application;

2. Winnings paid in person and electronically through a mobile

application;

3. Adjusted gross revenue in person and electronically through a mobile

application;

4. Tax rates applied to adjusted gross revenue in person and electronically

through a mobile application;

5. The tax due from adjusted gross revenues in person and electronically

through a mobile application;

6. Federal excise taxes paid; and

7. The total wagering tax due.

(7) Wagering taxes due and payable in accordance with this section shall be paid via

electronic funds transfer. The taxpayer shall provide the department with all

protocol documentation and electronic funds transfer data necessary to facili tate the

timely transfer of funds.

(8) Any taxpayer who violates any provision of this section shall be subject to the

uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax

interest rate as defined in KRS 131.010(6).

(9) The Kentu cky Horse Racing and Gaming Corporation may suspend, revoke, or

decline to renew a license upon the taxpayer's failure to timely submit payment of

taxes due under this section or the administrative regulations promulgated by the

department.

(10) The taxes imposed by this section shall be in lieu of all other state and local taxes

and fees imposed on the operation of, or the proceeds from, the operation of sports

wagering.