KRS 138.552 — Definitions -- Tax on sports wagering licensees -- Reporting requirements

(1) As used in this section:
(a) "Adjusted gross revenue" means the total sum of wagers collected on all
sporting events, less winnings paid to participants in the con test and all excise
taxes paid pursuant to federal law;
(b) "Department" means Department of Revenue;
(c) "Sporting event" has the same meaning as in KRS 230.210;
(d) "Sports wagering" has the same meaning as in KRS 230.210; and
(e) "Taxpayer" means any person liable for tax under this section.
(2) An excise tax is imposed on persons licensed to conduct sports wagering under
KRS 230.811 and 230.814 at a rate of:
(a) Nine and three -quarters percent (9.75%) on the adjusted gross revenue on
wagers placed at the licensed track; and
(b) Fourteen and one -quarter percent (14.25%) on the adjusted gross revenue on
wagers placed online via websites or mobile applications or other off -site
technology approved by the Kentucky Horse Racing and Gaming
Corporation;
and shall be appropriated to the sports wagering administration fund established in
KRS 230.817 and appropriated for the purposes established in that section.
(3) 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.
(4) The tax imposed by this section is due and payable to the department monthly and
shall be remitted on or before the twentieth da y 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 period more than twelve
(12) months after the month in which the amount carried over was originally due.
(5) (a) Payment shall be accompanied by a return prescribed by the department.
(b) 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.
(6) 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 facilitate the
timely transfer of funds.
(7) 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).
(8) The Kentucky 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.
(9) The taxes imposed by this sectio n 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.