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A06144 Summary:

BILL NOA06144A
 
SAME ASSAME AS S04817-A
 
SPONSORPretlow
 
COSPNSRLupardo, Buttenschon
 
MLTSPNSR
 
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.
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A06144 Actions:

BILL NOA06144A
 
04/03/2023referred to racing and wagering
06/02/2023amend (t) and recommit to racing and wagering
06/02/2023print number 6144a
06/07/2023reference changed to ways and means
06/08/2023reported referred to rules
06/08/2023reported
06/08/2023rules report cal.767
06/08/2023ordered to third reading rules cal.767
06/09/2023substituted by s4817a
 S04817 AMEND=A ADDABBO
 02/15/2023REFERRED TO RACING, GAMING AND WAGERING
 05/08/2023REPORTED AND COMMITTED TO FINANCE
 06/02/2023AMEND (T) AND RECOMMIT TO FINANCE
 06/02/2023PRINT NUMBER 4817A
 06/08/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/08/2023ORDERED TO THIRD READING CAL.1745
 06/08/2023PASSED SENATE
 06/08/2023DELIVERED TO ASSEMBLY
 06/08/2023referred to ways and means
 06/09/2023substituted for a6144a
 06/09/2023ordered to third reading rules cal.767
 06/09/2023passed assembly
 06/09/2023returned to senate
 10/13/2023DELIVERED TO GOVERNOR
 10/13/2023SIGNED CHAP.528
 10/13/2023APPROVAL MEMO.12
 02/15/2023REFERRED TO RACING, GAMING AND WAGERING
 05/08/2023REPORTED AND COMMITTED TO FINANCE
 06/02/2023AMEND (T) AND RECOMMIT TO FINANCE
 06/02/2023PRINT NUMBER 4817A
 06/08/2023COMMITTEE DISCHARGED AND COMMITTED TO RULES
 06/08/2023ORDERED TO THIRD READING CAL.1745
 06/08/2023PASSED SENATE
 06/08/2023DELIVERED TO ASSEMBLY
 06/08/2023referred to ways and means
 06/09/2023substituted for a6144a
 06/09/2023ordered to third reading rules cal.767
 06/09/2023passed assembly
 06/09/2023returned to senate
 10/13/2023DELIVERED TO GOVERNOR
 10/13/2023SIGNED CHAP.528
 10/13/2023APPROVAL MEMO.12
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A06144 Memo:

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.
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A06144 Text:



 
                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.
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