Amd 1351, RWB L; amd 1612, Tax L; amd Part EE 3, Chap 59 of 2019
Relates to the tax on gaming revenues in region five of zone two and to the tax rates on certain facilities within the Tioga county portion of such region; adds additional vendor fees for a certain track located within Oneida county; extends the effectiveness of such additional vendor fees.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6144A
SPONSOR: Pretlow TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to the tax on gaming revenues in certain regions; to amend the
tax law, in relation to the additional vendor fee for a certain track
located within Oneida county; and to amend part EE of chapter 59 of the
laws of 2019, amending the tax law relating to commissions paid to the
operator of a video lottery facility, in relation to the effectiveness
thereof
PURPOSE OF BILL:
This bill will provide slot parity for all gaming facilities in zone
two.
JUSTIFICATION:
The Governor included a provision in the state budget two years ago,
which allowed upstate casinos to request a 5-year slot tax reduction
from the Gaming Commission. All but one received a tax break without a
reason. This legislation is intended to minimize the disparity. This
legislation would correct the omission to create parity and fairness
within the casino industry in the state.
As a condition of the lower slot machine tax rate, casino will be
mandated to provide an initial report to the governor, the speaker of
the assembly, the temporary president of the senate, and the commission
detailing the projected use of funds resulting from the tax adjustment
and a plan that prescribes the manner in which the casino will rebuild
their economic infrastructure through the rehiring of laid-off employees
or capital improvements designed to create revenue and create new jobs.
Negative deviation of such plan will result in adjustment to the slot
tax rate.
LEGISLATIVE HISTORY:
New bill.
EFFECTIVE DATE:
This act shall take effect immediately;. provided, however, that the
amendments to subdivision 1 of section 1351 of the racing, pari-mutuel
wagering, and breeding law made by section one of this act shall not
affect the expiration and reversion of such subdivision and shall be
expired and deemed repealed therewith; provided further, however, that
the amendments to clause (B) of subparagraph (iii) of paragraph 1 of
subdivision b of section 1612 of the tax law made by section two of this
act shall not affect the expiration and repeal of such clause and shall
expire and be deemed repealed therewith; provided, further, notwith-
standing the provisions of article 5 of the general construction law,the
provisions of clause (B) of subparagraph (iii) of paragraph of subdivi-
sion b of section 1612 of the tax law, as amended by section two of this
act, are hereby revived and shall continue in full force and effect as
such provisions existed on March 30, 2023.
STATE OF NEW YORK
________________________________________________________________________
6144--A
2023-2024 Regular Sessions
IN ASSEMBLY
April 3, 2023
___________
Introduced by M. of A. PRETLOW, LUPARDO, BUTTENSCHON -- read once and
referred to the Committee on Racing and Wagering -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to the tax on gaming revenues in certain regions; to amend
the tax law, in relation to the additional vendor fee for a certain
track located within Oneida county; and to amend part EE of chapter 59
of the laws of 2019, amending the tax law relating to commissions paid
to the operator of a video lottery facility, in relation to the effec-
tiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel
2 wagering and breeding law, as amended by section 1 of part OOO of chap-
3 ter 59 of the laws of 2021, is amended to read as follows:
4 1. (a) For a gaming facility in zone two, there is hereby imposed a
5 tax on gross gaming revenues. The amount of such tax imposed shall be as
6 follows; provided, however, should a licensee have agreed within its
7 application to supplement the tax with a binding supplemental fee
8 payment exceeding the aforementioned tax rate, such tax and supplemental
9 fee shall apply for a gaming facility:
10 (1) in region two, forty-five percent of gross gaming revenue from
11 slot machines and ten percent of gross gaming revenue from all other
12 sources.
13 (2) in region one, thirty-nine percent of gross gaming revenue from
14 slot machines and ten percent of gross gaming revenue from all other
15 sources.
16 (3) in region five, thirty-seven percent of gross gaming revenue from
17 slot machines and ten percent of gross gaming revenue from all other
18 sources; provided however, that in the Tioga county portion of region
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09068-04-3
A. 6144--A 2
1 five, for the period during which both of the following criteria are met
2 (i) any facility's tax rate is adjusted by the commission pursuant to
3 paragraph (b) of this subdivision, and (ii) a vendor track that is
4 located within Oneida county, within fifteen miles of a Native American
5 class III gaming facility maintains at least seventy percent of full-
6 time equivalent employees as they employed in the year two thousand
7 sixteen, the tax rate on facilities located in the Tioga county portion
8 of region five shall be thirty percent of gross gaming revenue from slot
9 machines, and ten percent of gross gaming revenue from all other sourc-
10 es; and provided further, that any such facility shall provide an
11 initial report to the governor, the speaker of the assembly, the tempo-
12 rary president of the senate, and the commission detailing the projected
13 use of funds resulting from such tax adjustment and a plan that
14 prescribes the manner in which the licensed gaming facility receiving
15 the reduction in its slot machine tax rate will rebuild their economic
16 infrastructure through the rehiring of laid-off employees or the
17 creation of new jobs. Such plan shall also clearly establish quarterly
18 and annual employment goals of increasing full-time employees. Such
19 initial report and accompanying plan shall be due ninety days after such
20 reduction goes into effect. Thereafter, an annual report shall be made
21 to the governor, the speaker of the assembly, the temporary president of
22 the senate, and the commission detailing actual use of the funds result-
23 ing from such tax adjustment. Such report shall include, but not be
24 limited to, any impact on employment levels since receiving the funds,
25 an accounting of the use of such funds, any other measures implemented
26 to improve the financial stability of the gaming facility, and any other
27 information as deemed necessary by the commission. Such report shall be
28 due no later than the first day of the fourth quarter in each year such
29 tax rate has been granted.
30 (b) (1) Notwithstanding the rates in paragraph (a) of this subdivi-
31 sion, a gaming facility may petition the commission to lower the tax
32 rate applicable to its slot machines to no lower than thirty percent. In
33 analyzing such request, the commission shall evaluate the petition using
34 the following criteria:
35 (i) the ability of the licensee to satisfy the license criterion of
36 financial stability absent the tax rate reduction;
37 (ii) a complete examination of all financial projections, as well as
38 gaming revenues generated for the prior annual period;
39 (iii) the licensee's intended use of the funds resulting from a tax
40 adjustment;
41 (iv) the inability of the operator to remain competitive under the
42 current tax structure;
43 (v) positions advanced by other gaming operators in the state in
44 response to the petition;
45 (vi) the impact on the competitive landscape;
46 (vii) other economic factors such as employment and the potential
47 impact upon other businesses in the region; and
48 (viii) the public interest to be served by a tax adjustment, including
49 the impact upon the state in the event the operator is unable to remain
50 financially viable.
51 (2) The commission shall report their recommendation solely based on
52 the criteria listed in subparagraph one of this paragraph to the direc-
53 tor of the division of budget who will make a final approval.
54 (3) (i) As a condition of the lower slot machine tax rate, such gaming
55 facility shall provide an initial report to the governor, the speaker of
56 the assembly, the temporary president of the senate, and the commission
A. 6144--A 3
1 detailing the projected use of funds resulting from such tax adjustment
2 and a plan that prescribes the manner in which the licensed gaming
3 facility potentially receiving the reduction in its slot machine tax
4 rate will rebuild their economic infrastructure through the rehiring of
5 laid-off employees or the creation of new jobs. Such plan shall also
6 clearly establish quarterly and annual employment goals of increasing
7 full-time employees. Such initial report and accompanying plan shall be
8 due at the time a facility is granted a tax adjustment. Thereafter, an
9 annual report shall be made to the governor, the speaker of the assem-
10 bly, the temporary president of the senate, and the commission detailing
11 actual use of the funds resulting from such tax adjustment. Such report
12 shall include, but not be limited to, any impact on employment levels
13 since receiving the funds, an accounting of the use of such funds, any
14 other measures implemented to improve the financial stability of the
15 gaming facility, any relevant information that helped in the determi-
16 nation of such slot tax rate reduction, and any other information as
17 deemed necessary by the commission. Such report shall be due no later
18 than the first day of the fourth quarter after such tax rate has been
19 granted.
20 (ii) (A) At the conclusion of each year, a licensed gaming facility
21 shall provide an affirmation in writing to the commission stating the
22 employment goal in clause (i) of this subparagraph was either met or not
23 met as described in the initial report. If the licensed gaming facility
24 is found to have not adhered to the plan by the commission, then the
25 applicable slot tax rate shall be adjusted at the discretion of the
26 commission as follows:
27 1. If the actual employment number is more than fifty percent less
28 than the employment goal, then the slot tax rate shall be increased by
29 ten percentage points.
30 2. If the actual employment number is more than forty percent less
31 than the employment goal, then the slot tax rate shall be increased by
32 eight percentage points.
33 3. If the actual employment number is more than thirty percent less
34 than the employment goal, then the slot tax rate shall be increased by
35 six percentage points.
36 4. If the actual employment number is more than twenty percent less
37 than the employment goal, then the slot tax rate shall be increased by
38 four percentage points.
39 5. If the actual employment number is more than ten percent less than
40 the employment goal, then the slot tax rate shall be increased by two
41 percentage points.
42 (B) Such finding and the reasoning thereof shall occur no later than
43 thirty days following submission of the written affirmation.
44 (iii) A licensed gaming facility may petition the commission to lower
45 the tax rate applicable to its slot machines to no lower than thirty
46 percent no more than once annually after the effective date of the chap-
47 ter of the laws of two thousand twenty-one which amended this subdivi-
48 sion. A licensed gaming facility may request a revision to its plan in
49 its initial report due to unforeseen circumstances.
50 § 2. Clause (B) of subparagraph (iii) of paragraph 1 of subdivision b
51 of section 1612 of the tax law, as added by section 1 of part EE of
52 chapter 59 of the laws of 2019, is amended to read as follows:
53 (B) for a vendor track that is located within Oneida county, within
54 fifteen miles of a Native American class III gaming facility, such addi-
55 tional vendor fee shall be six and four-tenths percent of the total
56 revenue wagered at the vendor after payout for prizes pursuant to this
A. 6144--A 4
1 chapter. The vendor track shall forfeit this additional vendor fee for
2 any time period that the vendor track does not maintain at least [nine-
3 ty] seventy percent of full-time equivalent employees as they employed
4 in the year two thousand sixteen.
5 § 3. Section 3 of part EE of chapter 59 of the laws of 2019, amending
6 the tax law relating to commissions paid to the operator of a video
7 lottery facility, is amended to read as follows:
8 § 3. This act shall take effect immediately; provided, however, clause
9 (B) of subparagraph (iii) of paragraph 1 of subdivision b of section
10 1612 of the tax law as added by section one of this act shall take
11 effect June 30, 2019 and shall expire and be deemed repealed March 31,
12 [2023] 2027.
13 § 4. This act shall take effect immediately; provided, however, that
14 the amendments to subdivision 1 of section 1351 of the racing, pari-mu-
15 tuel wagering and breeding law made by section one of this act shall not
16 affect the expiration and reversion of such subdivision and shall be
17 expired and deemed repealed therewith; provided further, however, that
18 the amendments to clause (B) of subparagraph (iii) of paragraph 1 of
19 subdivision b of section 1612 of the tax law made by section two of this
20 act shall not affect the expiration and repeal of such clause and shall
21 expire and be deemed repealed therewith; provided, further, notwith-
22 standing the provisions of article 5 of the general construction law,
23 the provisions of clause (B) of subparagraph (iii) of paragraph 1 of
24 subdivision b of section 1612 of the tax law, as amended by section two
25 of this act, are hereby revived and shall continue in full force and
26 effect as such provisions existed on March 30, 2023.
