KRS 139.5327: Incentive for certain professional golf sporting events -- Definitions for

section -- Terms -- Application -- Sunset -- Administrative regulation -- Annual

report.

(1) As used in this section:

(a) "Facility operator" means a person who owns or operates a venue;

(b) "Professional golf sporting event" means an organized, competitive golf

event, governed by rules and a sporting body, where participants compete for

compensation beyond actual expenses;

(c) "Qualifying attraction" means a series o f professional golf sporting events

which is:

1. Held at a venue over a duration of at least three (3) consecutive days;

2. Hosted by a sponsoring entity pursuant to an agreement with a facility

operator that authorizes the sponsoring entity to conduct one (1) or more

series of a professional golf sporting event; and

3. Open to the public upon purchase of tickets, with attendance totaling at

least one hundred thousand (100,000) admissions over the duration of

each series of professional golf sporting events;

(d) "Sponsoring entity" means the person hosting a qualifying attraction; and

(e) "Venue" means:

1. Public property located in a consolidated local government or in an

urban-county government that is owned, operated, or controlled by the

consolidated local government or urban-county government;

2. A park located in a consolidated local government that is:

a. Open to the general public; and

b. Owned, operated, or controlled by any nonprofit corporation

established under the provisions of KRS 273.161 to 273.390;

3. Property located in a consolidated local government or in an urban -

county government that is owned, operated, or controlled by a public

university; or

4. Privately owned property located in a consolidated local government or

in an urban -county government that is suitable for hosting professional

golf sporting events and qualifying attractions.

(2) Notwithstanding KRS 134.580 and 139.770:

(a) A sponsoring entity shall be granted a sales tax incentive equal to one hundred

percent (100%) of the Kentucky sales tax generated by the sale of admissions

to a qualifying attraction held at a venue, and the s ales of tangible personal

property and services related to the qualifying attraction, including but not

limited to the sale of:

1. Food and beverage concessions;

2. Souvenirs;

3. Parking;

4. Suites;

5. Sponsorships; and

6. Other hospitality services;

sold at the qualifying attraction;

(b) One hundred percent (100%) of the sales tax incentive authorized in

paragraph (a) of this subsection shall be paid to the sponsoring entity of the

qualifying attraction from which the sales taxes were generated;

(c) Only one (1) incentive request shall be made for each qualifying attraction

each year;

(d) The sponsoring entity shall have no obligation to refund or otherwise return

any amount of the sales tax incentive to the persons from whom the sales tax

was collected;

(e) The sales tax incentive shall be reduced by the vendor compensation allowed

under KRS 139.570; and

(f) Interest shall not be allowed or paid on any sales tax incentive payment made

under this section.

(3) The department shall accept initial applicati ons for sales tax incentives under this

section for qualifying attractions held on or after July 1, 2026.

(4) To be eligible for a sales tax incentive under this section, the sponsoring entity shall

file an initial application with the department, which:

(a) Includes sufficient information regarding the qualifying attraction to

demonstrate whether it qualifies for the sales tax incentive; and

(b) Is filed at least sixty (60) days prior to the date of the first professional golf

sporting event constituting the qualifying attraction.

(5) Within thirty (30) days of receipt of the initial application, the department shall

notify the sponsoring entity of its preliminary approval or denial of the qualifying

attraction.

(6) If the initial application is denied, the department shall provide the reason for the

denial.

(7) After approval of its initial application and the completion of the qualifying

attraction, a sponsoring entity shall apply for a sales tax incentive no earlie r than

thirty (30) days following the end of the month during which sales taxes that were

generated from the qualifying attraction are collected. The application may

aggregate eligible sales taxes from previous months if the events comprising the

qualifying attraction were held in more than one (1) month.

(8) The department shall review each application for a sales tax incentive and

determine if it meets the requirements of this section, pending the verification of

required attendance.

(9) In determining eligibility for a sales tax incentive authorized under this section, the

department shall waive the duration and attendance requirements listed in

subsection (1)(c)1. and 3. of this section if the person requesting an incentive

demonstrates that any delays, cancellations, or postponements were due to

inclement weather or other extraordinary events beyond the control of the parties

involved and that the weather or other extraordinary events rendered the satisfaction

of the requirement impossible.

(10) Both the initial application and the sales tax incentive application shall be in the

form prescribed by the department through the promulgation of an administrative

regulation in accordance with KRS Chapter 13A.

(11) The department shall verify the amount of sale s tax incentive and pay the

allocations determined to be due in accordance with subsection (2)(b) of this section

within forty-five (45) days of receipt of the later of:

(a) The application submitted under subsection (7) of this section; or

(b) All necessary supporting information required by the department to determine

that the sponsoring entity is eligible for the incentive.

(12) (a) Prior to November 1, 2027, and continuing each November 1 thereafter to

November 1, 2037, the department shall provide an a nnual report detailing

information related to each qualifying attraction receiving incentives during

the fiscal year concluding on June 30 of the reporting period.

(b) The department shall include the following information in the report:

1. The name of the qualifying attraction;

2. The venue where the qualifying attraction was held;

3. The name of the facility operator;

4. The name of the sponsoring entity;

5. The duration of the qualifying attraction and the number of admissions

over that duration;

6. The amount of incentive paid to the facility operator; and

7. The amount of incentive paid to the sponsoring entity.

(c) The information required to be reported under this subsection shall not be

considered confidential taxpayer information and shall not be su bject to KRS

Chapter 131 or any other provisions of the Kentucky Revised Statutes

prohibiting disclosure or reporting of information.

(13) The provisions of this section shall expire on November 30, 2036, and a qualifying

attraction held after November 30, 2036, shall not be eligible for the incentives

authorized in this section.

(14) The General Assembly is committed to the research and development of tourism

policies, including the aspiration to hold other professional sporting events across

the Commonwealth and especially in rural Kentucky.