Kentucky Form 73A101, the Historical Pari-Mutuel Report, is used to report wagering on historical horse races and calculate the related Kentucky pari-mutuel tax. The form first determines the tax due by applying a 1.5% tax rate to the amount wagered at the track. It then allocates that tax among several designated programs and funds, including Equine Drug Research, the Equine Industry Program and Breeders Incentive Fund, the Higher Education Equine Trust and Revolving Fund, breed-specific development funds, and the General Fund. The form also contains special rate rules and fiscal-year deposit thresholds for the Thoroughbred Development Fund and Standardbred Development Fund. After all allocations are calculated, the total on line 16 must reconcile with the net tax due on line 3. Accurate completion is important because the wagering amount, development-fund rates, statutory caps, and allocation calculations directly affect the amount assigned to each program and the total tax reported.
How To File Form 73A101
Prepare Form 73A101 in duplicate.
Send the original report, along with payment of any tax due, to:
Kentucky Department of Revenue
Frankfort, Kentucky 40619
Make the tax payment payable to:
Kentucky State Treasurer
A copy of the completed report must also be submitted by email to the Kentucky Horse Racing Commission at:
The report must be filed no later than the fifth business day following the close of each racing week. Saturdays and Sundays are excluded when counting business days.
For reporting purposes, a race week runs from Monday through Sunday.
Before completing Form 73A101, gather the following information:
- The taxpayer or racetrack name.
- The Kentucky tax account number.
- The reporting-period beginning date.
- The reporting-period ending date.
- Total historical horse race wagering for the reporting period.
- Current fiscal-year deposits to the Thoroughbred Development Fund.
- Current fiscal-year deposits to the Standardbred Development Fund.
- Applicable contractual information affecting Standardbred allocations.
- Amounts already deposited toward the annual caps for Equine Drug Research, the Equine Industry Program and Breeders Incentive Fund, and the Higher Education Equine Trust and Revolving Fund.
- Records supporting all tax and allocation calculations.
How To Complete Form 73A101
Taxpayer And Reporting Period Information
Name and Account Number
Enter the legal name of the racetrack or reporting entity and its applicable Kentucky tax account number.
Verify that the account number belongs to the taxpayer responsible for reporting the historical pari-mutuel wagering activity.
Reporting Period — Start Date
Enter the first date covered by the report.
The reporting period should correspond with the applicable racing week.
Reporting Period — End Date
Enter the final date included in the report.
Make sure the wagering activity reported on line 1 relates only to this period.
For Department Use Only
Do not complete the section marked for Department use. The account number and tax-processing fields in this area are reserved for the Kentucky Department of Revenue.
Part I: Pari-Mutuel Tax Report
Part I calculates the net pari-mutuel tax due on historical horse race wagers reported for the period.
Line 1: Amount Wagered at This Track
Enter the total amount wagered at the track during the reporting period.
Use the historical pari-mutuel wagering records for the applicable race week to determine this amount.
This figure serves as the starting point for the tax calculation and most of the allocations in Part II.
Line 2: Tax Rate
The form specifies a tax rate of:
0.015, or 1.5%
Use this rate when calculating the tax on line 3.
Line 3: Net Tax Due
Multiply the amount wagered on line 1 by the tax rate on line 2.
Use:
Line 1 × 0.015 = Line 3
Enter the result as the net tax due.
The amount on line 3 must ultimately equal the total amount allocated on line 16.
Part II: Allocation of Pari-Mutuel Tax
Part II distributes the tax calculated in Part I among several Kentucky equine programs, development funds, and the General Fund.
Some allocations use fixed percentages of line 1, while others are subject to annual caps or fiscal-year deposit thresholds.
Equine Program Allocations
Line 4: Equine Drug Research
Multiply line 1 by 0.001.
Use:
Line 1 × 0.001 = Line 4
Enter the calculated amount, subject to the total cap shown on the form.
The total cap for this allocation is:
$320,000
Once the applicable total reaches the stated cap, the form does not direct additional amounts to this line.
Line 5: Equine Industry Program and Breeders Incentive Fund
Multiply line 1 by 0.002.
Use:
Line 1 × 0.002 = Line 5
Enter the result, subject to the total cap shown on the form.
The total cap is:
$2,000,000
Track the applicable cumulative amount so the allocation does not exceed the stated cap.
Line 6: Higher Education Equine Trust and Revolving Fund
Multiply line 1 by 0.001.
Use:
Line 1 × 0.001 = Line 6
The form establishes a total cap of:
$320,000
Enter the applicable amount without exceeding the stated total cap.
Development Fund Rates
Lines 7 through 10 establish the rates used to calculate the breed-development fund deposits on lines 11 through 14.
Thoroughbred Development Fund
Line 7: Thoroughbred Development Fund Rate
Choose the applicable rate based on fiscal-year deposits to the Thoroughbred Development Fund.
Use 0.0075 when fiscal-year deposits are $45,000,000 or less.
Use 0.004 when fiscal-year deposits are more than $45,000,000.
The instructions state that the 0.0075 rate applies to money wagered on historical horse races at the track for Thoroughbred racing until $45 million has been deposited to the development fund during the fiscal year from live and historical horse race wagering. After that threshold is reached, the rate decreases to 0.004.
Enter the rate that applies to the reporting period.
Standardbred Development Fund
Line 8: Standardbred Development Fund Rate
Choose the applicable rate based on fiscal-year deposits to the Standardbred Development Fund.
Use 0.01 when fiscal-year deposits are $20,000,000 or less.
Use 0.004 when fiscal-year deposits are more than $20,000,000.
The filing instructions also explain that historical horse race wagering at the track for harness racing is allocated in the exact amounts established by contracts filed with the commission, with at least one-half of the funds deposited into the Standardbred Development Fund until the $20 million fiscal-year threshold is reached.
After the threshold is reached, the rate decreases to 0.004.
Enter the applicable rate on line 8.
Line 9: Quarter Horse Development Fund Rate
The form specifies a rate of:
0.01, or 1%
Use this rate when calculating the Quarter Horse Development Fund deposit on line 13.
Line 10: Paint Horse, Appaloosa and Arabian Development Fund Rate
The form specifies a rate of:
0.01, or 1%
Use this rate when calculating the Paint Horse, Appaloosa and Arabian Development Fund deposit on line 14.
Development Fund Deposit Calculations
After entering the applicable rates on lines 7 through 10, use those rates to calculate the related deposits.
Line 11: Thoroughbred Development Fund Deposit
Multiply line 1 by the applicable Thoroughbred Development Fund rate entered on line 7.
Use:
Line 1 × Line 7 = Line 11
For example, use the 0.0075 rate while the applicable fiscal-year deposits are at or below the threshold specified by the form, and use 0.004 after the threshold condition applies.
Enter the resulting Thoroughbred Development Fund deposit.
Line 12: Standardbred Development Fund Deposit
Multiply line 1 by the applicable Standardbred Development Fund rate entered on line 8.
Use:
Line 1 × Line 8 = Line 12
Enter the calculated Standardbred Development Fund deposit.
When determining the applicable Standardbred rate and allocation, also account for the contractual and fiscal-year deposit rules described in the form’s instructions.
Line 13: Quarter Horse Development Fund Deposit
Multiply line 1 by the rate shown on line 9.
Use:
Line 1 × 0.01 = Line 13
Enter the resulting Quarter Horse Development Fund deposit.
Line 14: Paint Horse, Appaloosa and Arabian Development Fund Deposit
Multiply line 1 by the rate on line 10.
Use:
Line 1 × 0.01 = Line 14
Enter the calculated amount for the Paint Horse, Appaloosa and Arabian Development Fund.
General Fund And Total Tax Allocation
Line 15: General Fund
Calculate the General Fund amount by starting with the net tax due on line 3 and subtracting the allocations entered on lines 4, 5, 6, 11, 12, 13, and 14.
Use:
Line 3 – Line 4 – Line 5 – Line 6 – Line 11 – Line 12 – Line 13 – Line 14 = Line 15
Enter the remaining amount on line 15.
Because this line represents the amount remaining after the designated allocations, verify all preceding calculations before determining the General Fund amount.
Line 16: Total Amount Due
Add the amounts entered on:
- Line 4.
- Line 5.
- Line 6.
- Line 11.
- Line 12.
- Line 13.
- Line 14.
- Line 15.
Use:
Line 4 + Line 5 + Line 6 + Line 11 + Line 12 + Line 13 + Line 14 + Line 15 = Line 16
The total on line 16 must equal line 3.
If line 16 does not equal line 3, review the calculations on lines 4 through 15 before filing the report.
Understanding the Allocation Caps
Three allocations shown on Form 73A101 include total caps.
Equine Drug Research Cap
The allocation calculated on line 4 is subject to a total cap of $320,000.
Calculate the normal amount by multiplying line 1 by 0.001, but account for the stated cap when determining the amount that may be allocated.
Equine Industry Program and Breeders Incentive Fund Cap
Line 5 is subject to a total cap of $2,000,000.
The normal calculation is line 1 multiplied by 0.002, subject to that total limit.
Higher Education Equine Trust and Revolving Fund Cap
Line 6 is also subject to a total cap of $320,000.
The normal allocation is line 1 multiplied by 0.001, subject to the cap.
Because the form identifies these amounts as total caps rather than limits for each individual return, review the applicable cumulative totals when determining whether the normal calculation can be fully allocated.
Understanding the Thoroughbred Development Fund Rate Change
The Thoroughbred Development Fund does not use the same rate throughout the entire fiscal year.
The initial rate is 0.0075, or 0.75% of the applicable wagering amount.
That rate applies until the fiscal-year deposits described by the form reach the $45 million threshold.
Once the threshold condition is reached, the applicable rate decreases to:
0.004, or 0.4%.
Therefore, before completing lines 7 and 11, determine the applicable fiscal-year deposit status so that the correct rate is used.
Understanding the Standardbred Development Fund Rate Change
The Standardbred Development Fund also contains a fiscal-year threshold.
The initial rate shown on line 8 is:
0.01, or 1%.
That rate applies while fiscal-year deposits are at or below $20 million.
After the applicable deposits exceed that threshold, the rate decreases to:
0.004, or 0.4%.
The instructions also include a special provision for historical horse race wagers at a track for harness racing. The amounts are based on contracts between the parties that have been filed with the commission, and at least one-half of the funds must be deposited into the Standardbred Development Fund until the $20 million fiscal-year threshold is reached.
Review both the applicable contracts and the fiscal-year deposit total before completing lines 8 and 12.
Certification And Signature Section
After completing the tax calculations and allocations, review the report and any accompanying schedules.
The certification confirms that, to the best of the signer’s knowledge and belief, the report and accompanying schedules are true and correct.
Day
Enter the numerical day on which the report is being certified.
Month
Enter the month in which the report is signed.
Year
Enter the year of certification.
Track Representative
The authorized track representative should complete the designated representative field.
Title
Enter the representative’s official position or title.
E-mail Address
Enter an email address where the track representative or responsible party can be contacted about the report.
Telephone Number
Provide a telephone number for questions concerning the filing.
Payment Instructions
If tax is due, make the payment payable to:
Kentucky State Treasurer
Mail the original report and tax payment to:
Kentucky Department of Revenue
Frankfort, Kentucky 40619
Remember that the report is prepared in duplicate. In addition to mailing the original, submit a copy to the Kentucky Horse Racing Commission by email at:
When Form 73A101 Is Due
Form 73A101 must be filed no later than the fifth business day following the close of each week of racing.
The racing week begins on Monday and ends on Sunday.
Saturday and Sunday are excluded when counting the business days used to determine the filing deadline.
Because the deadline applies to each racing week, maintain weekly wagering and tax records so the return can be prepared and submitted on time.
Interest And Penalties
Interest on Unpaid Tax
Interest may be charged when tax remains unpaid after the original due date.
The tax interest rate applies beginning with the original due date and continues until the date the outstanding tax is paid.
Late Payment Penalty
If the amount of tax due on line 16 is not paid by the original due date, Kentucky may assess a late-payment penalty.
The penalty may equal 2% of the tax due for every 30 days or fraction of a 30-day period that the payment is late.
The penalty cannot exceed 20% of the tax due.
The minimum late-payment penalty is:
$10
Late Filing Penalty
A separate late-filing penalty may apply if Form 73A101 is not filed by its due date or an applicable extended due date.
The penalty may equal 2% of the total tax due for every 30 days or fraction of a 30-day period that the return remains unfiled.
The maximum late-filing penalty is 20% of the tax due.
The minimum penalty is:
$10
Additional penalties may apply in cases involving negligence, failure to file a required report or return, fraud, or similar circumstances.
The instructions state that penalties may potentially be reduced or waived when reasonable cause for the reduction or waiver can be demonstrated. Interest is not included in this potential relief.
Final Review Before Filing
- Verify the taxpayer or racetrack name.
- Verify the Kentucky tax account number.
- Enter the correct reporting-period start date.
- Enter the correct reporting-period end date.
- Leave the Department-use-only area blank.
- Verify the total amount wagered at the track on line 1.
- Confirm the 0.015 tax rate on line 2.
- Multiply line 1 by 0.015 correctly for line 3.
- Calculate the Equine Drug Research allocation on line 4.
- Check the $320,000 total cap applicable to line 4.
- Calculate the Equine Industry Program and Breeders Incentive Fund allocation on line 5.
- Check the $2,000,000 total cap applicable to line 5.
- Calculate the Higher Education Equine Trust and Revolving Fund allocation on line 6.
- Check the $320,000 total cap applicable to line 6.
- Determine the correct Thoroughbred Development Fund rate for line 7.
- Verify whether the applicable fiscal-year deposits are at or above the $45 million threshold.
- Determine the correct Standardbred Development Fund rate for line 8.
- Verify whether the applicable fiscal-year deposits are at or above the $20 million threshold.
- Review applicable Standardbred contractual allocation requirements.
- Confirm the 0.01 Quarter Horse Development Fund rate on line 9.
- Confirm the 0.01 Paint Horse, Appaloosa and Arabian Development Fund rate on line 10.
- Multiply line 1 by line 7 correctly for line 11.
- Multiply line 1 by line 8 correctly for line 12.
- Calculate the Quarter Horse Development Fund deposit on line 13.
- Calculate the Paint Horse, Appaloosa and Arabian Development Fund deposit on line 14.
- Subtract all applicable allocations from line 3 to calculate the General Fund amount on line 15.
- Add lines 4, 5, 6, 11, 12, 13, 14, and 15 for line 16.
- Confirm that line 16 exactly equals line 3.
- Review all accompanying schedules and records.
- Complete the certification day, month, and year.
- Have the authorized track representative complete the certification.
- Enter the representative’s title.
- Provide an email address.
- Provide a telephone number.
- Prepare the report in duplicate.
- Make any tax payment payable to the Kentucky State Treasurer.
- Mail the original report and payment to the Kentucky Department of Revenue.
- Email a copy of the report to the Kentucky Horse Racing Commission.
- File the report by the fifth business day following the close of the applicable racing week.