Harness Racing Communications, a division of the USTA

A tax modernization plan to be unveiled this evening by Kentucky Governor Ernie Fletcher includes some benefits to the Standardbred industry.

According to a story on Bloodhorse.com, Senator Damon Thayer, who worked on details of the tax plan, says the package would provide for a Standardbred breed development program to be funded through the existing 6% sales tax on stud fees. The percentage to be devoted to the Standardbred industry is 13% (or about $1.8 million) of the total generated by all stud fees, regardless of breed. Thoroughbreds would get 80% and other breeds would get nearly a million, while 7% would go to a breeders incentive fund.

If the tax plan is approved, money for that fund would begin to accrue on July 1 of this year and the development program would begin January 1, 2006. There has also been modification of tax laws pertaining to sales tax on non residents who buy a horse in the state. They would no longer have to remove the horses from Kentucky within a set period of time to be exempt from paying the tax.

Legislation to authorize casino gambling at most racetracks and several other locations was pre-filed by Senator David Boswell of Owensboro. No other such bills have been filed as of today and there are conflicting reports as to whether the racing industry would push for a bill during the short session that ends in March.