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KENTUCKYS DAILY FEE VOID Judge Rules ,500 Daily Fee Cannot Be Imposed Upon Three Per Cent Sales Tax. LOUISVILLE, Ky., April 12. Under the three per cent sales tax enacted last year the race track daily license fee of ,500, enacted in 1932, became void, Judge Humphrey ruled here today in the declaratory judgment suit filed by Churchill Downs, Inc., against the State Tax Commission and the city of Louisville. The effect of the sale tax law, held Judge Humphrey, is that patrons must pay three per cent on admissions but the track must pay on its pari-mutuel "take-out"; on revenue from con essions, property, rental, stabling charges and advertising receipts. v He dismissed the states contention that the sales tax applied to the entire mutuel pool. The tax can be collected only on money received for the operation of the mutuels, . that is, the "take-out," or tracks conimis-. sion, and breakage, he ruled. The track acts merely as a stakeholder for the remainder of the pool, he held. Judge Humphrey said that the daily ,500 tax was bound to be knocked out by the 1934 sales tax because the legislature cannot add a tax to an exclusive tax. The daily fee was enacted in 1932 as an exclusive tax in lieu of all licenses imposed on the tracks by state or local governments.
