Decreases the tax rate on gaming revenues from slot machines in facilities in region 5 of zone 2; requires such facilities to report on the use of the retained funds for the creation of new jobs or rehiring laid-off employees.
STATE OF NEW YORK
________________________________________________________________________
10035
IN ASSEMBLY
April 29, 2022
___________
Introduced by M. of A. PRETLOW, LUPARDO -- read once and referred to the
Committee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to the tax on gaming revenues in certain regions; and provid-
ing for the repeal of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 1 of section 1351 of the
2 racing, pari-mutuel wagering and breeding law, as amended by section 1
3 of part OOO of chapter 59 of the laws of 2021, is amended to read as
4 follows:
5 (a) For a gaming facility in zone two, there is hereby imposed a tax
6 on gross gaming revenues. The amount of such tax imposed shall be as
7 follows; provided, however, should a licensee have agreed within its
8 application to supplement the tax with a binding supplemental fee
9 payment exceeding the aforementioned tax rate, such tax and supplemental
10 fee shall apply for a gaming facility:
11 (1) in region two, forty-five percent of gross gaming revenue from
12 slot machines and ten percent of gross gaming revenue from all other
13 sources.
14 (2) in region one, thirty-nine percent of gross gaming revenue from
15 slot machines and ten percent of gross gaming revenue from all other
16 sources.
17 (3) in region five for the casino located in Nichols, New York, [thir-
18 ty-seven] thirty percent of gross gaming revenue from slot machines and
19 ten percent of gross gaming revenue from all other sources.
20 § 2. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering
21 and breeding law, as added by chapter 174 of the laws of 2013, is
22 amended to read as follows:
23 1. For a gaming facility in zone two, there is hereby imposed a tax on
24 gross gaming revenues. The amount of such tax imposed shall be as
25 follows; provided, however, should a licensee have agreed within its
26 application to supplement the tax with a binding supplemental fee
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14936-04-2
A. 10035 2
1 payment exceeding the aforementioned tax rate, such tax and supplemental
2 fee shall apply for a gaming facility:
3 (a) in region two, forty-five percent of gross gaming revenue from
4 slot machines and ten percent of gross gaming revenue from all other
5 sources.
6 (b) in region one, thirty-nine percent of gross gaming revenue from
7 slot machines and ten percent of gross gaming revenue from all other
8 sources.
9 (c) in region five for the casino located in Nichols, New York, [thir-
10 ty-seven] thirty percent of gross gaming revenue from slot machines and
11 ten percent of gross gaming revenue from all other sources.
12 § 3. 1. As a condition of the lower slot machine tax rate in region
13 five provided by this act, such gaming facility shall provide an initial
14 report to the governor, the speaker of the assembly, the temporary pres-
15 ident of the senate, and the commission detailing the projected use of
16 funds resulting from such tax adjustment and a plan that prescribes the
17 manner in which the licensed gaming facility receiving the reduction in
18 its slot machine tax rate will rebuild their economic infrastructure
19 through the rehiring of laid-off employees or capital improvements
20 designed to create revenue and create new jobs. Such plan shall also
21 clearly establish quarterly and annual employment goals of increasing
22 full-time employees. Such initial report and accompanying plan shall be
23 due thirty days after the effective date of this section. Thereafter, an
24 annual report shall be made to the governor, the speaker of the assem-
25 bly, the temporary president of the senate, and the commission detailing
26 actual use of the funds resulting from such tax adjustment. Such report
27 shall include, but not be limited to, any impact on employment levels
28 since receiving the funds, an accounting of the use of such funds, any
29 other measures implemented to improve the financial stability of the
30 gaming facility, any relevant information that helped in the determi-
31 nation of such slot tax rate reduction, and any other information as
32 deemed necessary by the commission. Such report shall be due no later
33 than the first day of the fourth quarter after such tax rate has been
34 granted.
35 2. (a) At the conclusion of each year, the licensed gaming facility
36 shall provide an affirmation in writing to the commission stating the
37 employment goal in subdivision 1 of this section was either met or not
38 met as described in the initial report. If the licensed gaming facility
39 is found to have not adhered to the plan by the commission, then the
40 applicable slot tax rate shall be adjusted at the discretion of the
41 commission as follows:
42 (1) If the actual employment number is more than fifty percent less
43 than the employment goal, then the slot tax rate shall be increased by
44 ten percentage points.
45 (2) If the actual employment number is more than forty percent less
46 than the employment goal, then the slot tax rate shall be increased by
47 eight percentage points.
48 (3) If the actual employment number is more than thirty percent less
49 than the employment goal, then the slot tax rate shall be increased by
50 six percentage points.
51 (4) If the actual employment number is more than twenty percent less
52 than the employment goal, then the slot tax rate shall be increased by
53 four percentage points.
54 (5) If the actual employment number is more than ten percent less than
55 the employment goal, then the slot tax rate shall be increased by two
56 percentage points.
A. 10035 3
1 (b) Such finding and the reasoning thereof shall occur no later than
2 thirty days following submission of the written affirmation.
3 § 4. This act shall take effect immediately and shall expire and be
4 deemed repealed five years after such date; provided, however, that the
5 amendments to subdivision 1 of section 1351 of the racing, pari-mutuel
6 wagering and breeding law made by section one of this act shall be
7 subject to the expiration and reversion of such subdivision when upon
8 such date the provisions of section two of this act shall take effect.
