AN ACT relating to the partial distribution of pari-mutuel racing tax receipts to local governments.

2026 Regular Session Introduced by Al Gentry and 1 co-sponsor

The bill would divert a portion of pari-mutuel tax receipts to local Kentucky governments, creating a mechanism for sharing state revenues with localities.

to Appropriations & Revenue (H)

#budgetandfinancialadministration #horsesandhorseracing #localgovernment #localmandate #reportsmandated

Primary purpose and intent

To modify the allocation framework for tax receipts generated from pari-mutuel racing.

To ensure a portion of these tax receipts is distributed to local governments, rather than retaining all such revenues at the state level.

The measure aims to provide local fiscal support potentially tied to areas hosting racetrack-related activities or impacted by pari-mutuel racing operations.

Key provisions and changes

Establishes a framework for the partial distribution of pari-mutuel racing tax receipts to local governments. The exact percentage or formula is not specified in the summary, but the act would create a mechanism to send a defined portion of receipts to local entities.

Likely designates eligibility criteria for local governments to receive funds (e.g., geographic boundaries of racetrack communities, jurisdictions hosting racing facilities, or other statutory criteria). The bill may also specify reporting or oversight requirements to ensure proper use of funds.

Could include sunset or review provisions, clarifications on funding streams, and interaction with existing state-budget processes.

May outline administrative responsibilities, such as how revenues are calculated, distributed, and reconciled.

Who is affected

Local governments within Kentucky that would be designated to receive a portion of pari-mutuel tax receipts.

State government and the Kentucky Department responsible for tax collection and revenue distribution, which would implement and administer the new distribution mechanism.

Pari-mutuel racing operators and racetracks, insofar as their tax contributions are now partially allocated to localities.

Procedural and timeline aspects

History indicates introduction in the Kentucky House on February 25, 2026.

The bill was referred to the Committee on Committees (H) and subsequently to Appropriations & Revenue (H) on March 4, 2026, suggesting it will undergo fiscal and revenue-related review before any floor action.

As a fiscal-related bill, it may require a revenue impact statement, committee hearings, and potential amendments to align with the state’s budget framework.

Potential impacts and considerations

Local fiscal relief: Directs a portion of pari-mutuel tax receipts to local governments, potentially enhancing local budgets and funding for community services, infrastructure near racetracks, or other local priorities.

Equity and alignment: The effectiveness depends on the calculation method, distribution formula, and oversight to ensure funds reach intended localities equitably.

Revenue forecasting: The state would need to adjust revenue forecasts and budget planning to account for the new local distribution.

Operational implications: Administrative systems must be updated to track, divert, and certify distributions to local governments.

Note: The summary reflects the bill’s stated intent and the typical structure of similar revenue-distribution measures. Specific statutory text would define exact percentages, eligibility, and administrative processes.

Bill