KRS § 139.5325 — KY Code / Title XI / Chapter 139 / Section 139.5325
139.5325 Sales tax incentives for qualified attraction -- Applications -- Eligibility -- Report -- Sunset
Status: in_force

139.5325 Sales tax incentives for qualified attraction -- Applications -- Eligibility --

Report -- Sunset.

(1) As used in this section:

(a) "Entertainment event":

1. Means a live performance or exhibition of musical, theatrical, cultural,

culinary, or other artistic presentation; and

2. Does not include sporting events or tournaments;

(b) "Facility operator" means a person who owns or operates a venue;

(c) "Qualifying attraction" means a series of entertainment events which is:

1. Held at a venue over a duration of at least two (2) consecutive days;

2. Hosted by a sponsoring entity pursuant to an agreement with a facility

operator that authorizes the sponsoring entity to conduct one (1) or more

series of entertainment events annually during at least five (5)

consecutive years; and

3. Open to the public upon purchase of tickets, with attendance totaling at

least sixty thousand (60,000) admissions over the duration of each series

of entertainment events;

(d) "Sponsoring entity" means the person hosting a qualifying attraction; and

(e) "Venue" means:

1. Public property located in a consolidated local government or an urban-

county government which is owned, operated, or controlled by the

consolidated local government, the urban-county government, or the

Commonwealth;

2. A park located in a consolidated local government that is:

a. Open to the general public; and

b. Owned, operated, or controlled by any nonprofit corporation

established under KRS 273.161 to 273.390;

3. Property located in a consolidated local government or an urban-county

government that is owned, operated, or controlled by a public university;

or

4. Privately owned property located in a consolidated local government or

an urban-county government that is suitable for hosting entertainment

events and qualifying attractions.

(2) Notwithstanding KRS 134.580 and 139.770:

(a) A sponsoring entity and facility operator shall be granted a sales tax incentive

totaling fifty percent (50%) of the Kentucky sales tax generated by the sale of

admissions to a qualifying attraction held at a venue, and the sales of tangible

personal property and services at the qualifying attraction, including but not

limited to the sale of food and beverage concessions, souvenirs, camping, and

parking;

(b) The amount of the sales tax incentive authorized in paragraph (a) of this

subsection shall be allocated as follows:

1. Fifty percent (50%) shall be paid to the facility operator and utilized to

support operations and maintenance at the venue; and

2. Fifty percent (50%) shall be paid to the sponsoring entity of the

qualifying attraction from which the sales taxes were generated;

(c) Only one (1) incentive request shall be made for each qualifying attraction

each year;

(d) The sponsoring entity and facility operator shall have no obligation to refund

or otherwise return any amount of the sales tax incentive to the persons from

whom the sales tax was collected;

(e) The sales tax incentive shall be reduced by the vendor compensation allowed

under KRS 139.570; and

(f) Interest shall not be allowed or paid on any sales tax incentive payment made

under this section.

(3) The department shall accept initial applications for sales tax incentives under this

section for qualifying attractions held on or after July 1, 2025.

(4) To be eligible for a sales tax incentive under this section, the sponsoring entity shall

file an initial application with the department, which:

(a) Includes sufficient information regarding the qualifying attraction to

demonstrate whether it qualifies for the sales tax incentive; and

(b) Is filed at least sixty (60) days prior to the date of the first entertainment event

constituting the qualifying attraction.

(5) Within thirty (30) days of receipt of the initial application, the department shall

notify the sponsoring entity of its preliminary approval or denial of the qualifying

attraction.

(6) If the initial application is denied, the department shall provide the reason for the

denial.

(7) After approval of its initial application and the completion of the qualifying

attraction, a sponsoring entity shall apply for a sales tax incentive no earlier than

thirty (30) days following the end of the month during which sales taxes that were

generated from the qualifying attraction are collected. The application may

aggregate eligible sales taxes from previous months if the events comprising the

qualifying attraction were held in more than one (1) month.

(8) The department shall review each application for a sales tax incentive and

determine if it meets the requirements of this section, pending the verification of

required attendance.

(9) In determining eligibility for a sales tax incentive authorized under this section, the

department shall waive the duration and attendance requirements listed in

subsection (1)(c)1. and 3. of this section if the person requesting an incentive

demonstrates that any delays, cancellations, or postponements were due to

inclement weather or other extraordinary events beyond the control of the parties

involved and that the weather or other extraordinary events rendered the satisfaction

of the requirement impossible.

(10) Both the initial application and the sales tax incentive application shall be in the

form prescribed by the department through the promulgation of an administrative

regulation in accordance with KRS Chapter 13A.

(11) The department shall verify the amount of sales tax incentive and pay the

allocations determined to be due in accordance with subsection (2)(b) of this section

within forty-five (45) days of receipt of the later of:

(a) The application submitted under subsection (7) of this section; or

(b) All necessary supporting information required by the department to determine

that the sponsoring entity is eligible for the incentive.

(12) (a) Prior to November 1, 2026, and continuing each November 1 thereafter to

November 1, 2035, the department shall provide an annual report detailing

information related to each qualifying attraction receiving incentives during

the fiscal year concluding on June 30 of the reporting period.

(b) The department shall include the following information in the report:

1. The name of the qualifying attraction;

2. The venue where the qualifying attraction was held;

3. The name of the facility operator;

4. The name of the sponsoring entity;

5. The duration of the qualifying attraction and the number of admissions

over that duration;

6. The amount of incentive paid to the facility operator; and

7. The amount of incentive paid to the sponsoring entity.

(c) The information required to be reported under this subsection shall not be

considered confidential taxpayer information and shall not be subject to KRS

Chapter 131 or any other provisions of the Kentucky Revised Statutes

prohibiting disclosure or reporting of information.

(13) The provisions of this section shall expire on June 30, 2035, and a qualifying

attraction held after June 30, 2035, shall not be eligible for the incentives authorized

in this section.

(14) The General Assembly is committed to the research and development of tourism

policies, including the aspiration to hold other entertainment events across the

Commonwealth and especially in rural Kentucky.