{"data":{"id":"us-ky/krs-139.5325","jurisdiction":"us-ky","citation":"KRS 139.5325","heading":"Sales tax incentives for qualified attraction -- Applications -- Eligibility --","body":"Report -- Sunset.\n(1) As used in this section:\n(a) \"Entertainment event\":\n1. Means a live performance or exhibition of musical, theatrical, cultural,\nculinary, or other artistic presentation; and\n2. Does not include sporting events or tournaments;\n(b) \"Facility operator\" means a person who owns or operates a venue;\n(c) \"Qualifying attraction\" means a series of entertainment events which is:\n1. Held at a venue over a duration of at least two (2) consecutive days;\n2. Hosted by a sponsoring entity pursuant to an agreement with a facility\noperator that authorizes the sponsoring entity to conduct one (1) or more\nseries of entertainment events annually during at least five (5)\nconsecutive years; and\n3. Open to the public u pon purchase of tickets, with attendance totaling at\nleast sixty thousand (60,000) admissions over the duration of each series\nof entertainment events;\n(d) \"Sponsoring entity\" means the person hosting a qualifying attraction; and\n(e) \"Venue\" means:\n1. Public property located in a consolidated local government or an urban -\ncounty government which is owned, operated, or controlled by the\nconsolidated local government, the urban -county government, or the\nCommonwealth;\n2. A park located in a consolidated local government that is:\na. Open to the general public; and\nb. Owned, operated, or controlled by any nonprofit corporation\nestablished under KRS 273.161 to 273.390;\n3. Property located in a consolidated local government or an urban -county\ngovernment that is owned, operated, or controlled by a public university;\nor\n4. Privately owned property located in a consolidated local government or\nan urban -county government that is suitable for hosting entertainment\nevents and qualifying attractions.\n(2) Notwithstanding KRS 134.580 and 139.770:\n(a) A sponsoring entity and facility operator shall be granted a sales tax incentive\ntotaling fifty percent (50%) of the Kentucky sales tax generated by the sale of\nadmissions to a qualifying attraction held at a venue, and the sales of tangible\npersonal property and services at the qualifying attraction, including but not\nlimited to the sale of food and beverage concessions, souvenirs, camping, and\nparking;\n(b) The amount of the sales tax incentive authorized in paragraph (a) of this\nsubsection shall be allocated as follows:\n1. Fifty percent (50%) shall be paid to the facility operator and utilized to\nsupport operations and maintenance at the venue; and\n2. Fifty percent (50%) shall be paid to the sponsoring entity of the\nqualifying attraction from which the sales taxes were generated;\n(c) Only one (1) incentive request shall be made for each qualifying attraction\neach year;\n(d) The sponsoring entity and facility operator shall have no obligation to refund\nor otherwise return any amount of the sales tax incentive to the persons from\nwhom the sales tax was collected;\n(e) The sales tax incentive shall be reduced by the vendor compensation allowed\nunder KRS 139.570; and\n(f) Interest shall not be allowed or paid on any sales tax incentive pay ment made\nunder this section.\n(3) The department shall accept initial applications for sales tax incentives under this\nsection for qualifying attractions held on or after July 1, 2025.\n(4) To be eligible for a sales tax incentive under this section, the sponsoring entity shall\nfile an initial application with the department, which:\n(a) Includes sufficient information regarding the qualifying attraction to\ndemonstrate whether it qualifies for the sales tax incentive; and\n(b) Is filed at least sixty (60) days prior to the date of the first entertainment event\nconstituting the qualifying attraction.\n(5) Within thirty (30) days of receipt of the initial application, the department shall\nnotify the sponsoring entity of its preliminary approval or denial of the qu alifying\nattraction.\n(6) If the initial application is denied, the department shall provide the reason for the\ndenial.\n(7) After approval of its initial application and the completion of the qualifying\nattraction, a sponsoring entity shall apply for a sale s tax incentive no earlier than\nthirty (30) days following the end of the month during which sales taxes that were\ngenerated from the qualifying attraction are collected. The application may\naggregate eligible sales taxes from previous months if the events  comprising the\nqualifying attraction were held in more than one (1) month.\n(8) The department shall review each application for a sales tax incentive and\ndetermine if it meets the requirements of this section, pending the verification of\nrequired attendance.\n(9) In determining eligibility for a sales tax incentive authorized under th is section, the\ndepartment shall waive the duration and attendance requirements listed in\nsubsection (1)(c)1. and 3. of this section if the person requesting an incentive\ndemonstrates that any delays, cancellations, or postponements were due to\ninclement weather or other extraordinary events beyond the control of the parties\ninvolved and that the weather or other extraordinary events rendered the satisfaction\nof the requirement impossible.\n(10) Both the initial application and the sales tax incentive applic ation shall be in the\nform prescribed by the department through the promulgation of an administrative\nregulation in accordance with KRS Chapter 13A.\n(11) The department shall verify the amount of sales tax incentive and pay the\nallocations determined to be due in accordance with subsection (2)(b) of this section\nwithin forty-five (45) days of receipt of the later of:\n(a) The application submitted under subsection (7) of this section; or\n(b) All necessary supporting information required by the department to determine\nthat the sponsoring entity is eligible for the incentive.\n(12) (a) Prior to November 1, 2026, and continuing each November 1 thereafter to\nNovember 1, 2035, the department shall provide an annual report detailing\ninformation related to each quali fying attraction receiving incentives during\nthe fiscal year concluding on June 30 of the reporting period.\n(b) The department shall include the following information in the report:\n1. The name of the qualifying attraction;\n2. The venue where the qualifying attraction was held;\n3. The name of the facility operator;\n4. The name of the sponsoring entity;\n5. The duration of the qualifying attraction and the number of admissions\nover that duration;\n6. The amount of incentive paid to the facility operator; and\n7. The amount of incentive paid to the sponsoring entity.\n(c) The information required to be reported under this subsection shall not be\nconsidered confidential taxpayer information and shall not be subject to KRS\nChapter 131 or any other provisions of the Kentucky Revised Statutes\nprohibiting disclosure or reporting of information.\n(13) The provisions of this section shall expire on June 30, 2035, and a qualifying\nattraction held after June 30, 2035, shall not be eligible for the incentives authorized\nin this section.\n(14) The General Assembly is committed to the research and development of tourism\npolicies, including the aspiration to hold other entertainment events across the\nCommonwealth and especially in rural Kentucky.","path":["KRS Chapter 139"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56612","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:32Z","sha256":"896019527c81a455594e59594b0ffbb4679306250054fe837cbdedcdb530dde6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-139.532","next":"us-ky/krs-139.5327"},"notice":"GroundRules: Original legal text. Not legal advice."}