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Kentucky Breed Incentive Changes Being Considered

October 24, 2010
Posted by Tom LaMarra

A Kentucky Horse Racing Commission committee is considering changes to the state’s Breeders’ Incentive Fund, money for which comes from a 6% sales tax on stud fees. The committee met Oct. 21 to toss around ideas and devise a plan to better market the fund, which paid about $15 million in awards to Thoroughbreds, Standardbreds, and other breeds of horses in 2008. The money

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A Kentucky Horse Racing Commission committee is considering changes to the state's Breeders' Incentive Fund, money for which comes from a 6% sales tax on stud fees.

The committee met Oct. 21 to toss around ideas and devise a plan to better market the fund, which paid about $15 million in awards to Thoroughbreds, Standardbreds, and other breeds of horses in 2008. The money is split 80% to Thoroughbreds, 13% to Standardbreds, and 7% to other breeds under legislation passed in the mid-2000s.

In 2006, the first year of payments, breeders earned $12 million. The total improved to about $15 million in 2007-08, but this year's payments are projected at $13.4 million because of declines in the breeding industry.

Roughly 98% of the fund comes from the tax on Thoroughbred stud fees

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Written by:

Tom LaMarra

Tom LaMarra, a native of New Jersey and graduate of Rutgers University, has been news editor at The Blood-Horse since 1998. After graduation he worked at newspapers in New Jersey and Pennsylvania as an editor and reporter with a focus on municipal government and politics. He also worked at Daily Racing Form and Thoroughbred Times before joining The Blood-Horse. LaMarra, who has lived in Lexington since 1994, has won various writing awards and was recognized with the Old Hilltop Award for outstanding coverage of the horse racing industry. He likes to spend some of his spare time handicapping races.