S T A T E   O F   N E W   Y O R K
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                                  5805

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 17, 2011
                               ___________

Introduced  by Sen. NOZZOLIO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in relation to video  gaming  machines  and
  disposition of revenues

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Clauses (A), (B) and (H) of subparagraph (ii) of  paragraph
1 of subdivision b of section 1612 of the tax law, as amended by section
6  of  part  K of chapter 57 of the laws of 2010, are amended to read as
follows:
  (A) having fewer than one thousand [one]  NINE  hundred  video  gaming
machines,  at  a rate of thirty-five percent for the first fifty million
dollars annually, twenty-eight percent  for  the  next  hundred  million
dollars annually, and twenty-five percent thereafter of the total reven-
ue  wagered at the vendor track after payout for prizes pursuant to this
chapter;
  (B) having one thousand  [one]  NINE  hundred  or  more  video  gaming
machines,  at  a rate of thirty-one percent of the total revenue wagered
at the vendor track after payout for prizes pursuant  to  this  chapter,
except  for such facility located in the county of Westchester, in which
case the rate shall be thirty  percent  until  March  thirty-first,  two
thousand twelve.
  (H)  notwithstanding  clauses  (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track shall be  eligi-
ble  for  a  vendor's  capital  award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant  to
this  chapter,  which  shall  be  used  exclusively  for capital project
investments to improve the facilities of the vendor track which  promote
or  encourage  increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging  facilities,  enter-
tainment   facilities,  retail  facilities,  dining  facilities,  events

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13160-01-1
              

S. 5805                             2

arenas, parking garages and other  improvements  that  enhance  facility
amenities;  provided  that such capital investments shall be approved by
the division, in consultation with the state racing and wagering  board,
and  that  such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities  and  increase
the amount of revenue generated to support state education programs. The
annual  amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited  to  two  million  five  hundred
thousand  dollars,  except for Aqueduct racetrack, for which there shall
be no vendor's capital awards. Except for tracks having  less  than  one
thousand  [one]  NINE hundred video gaming machines, each track operator
shall be required to co-invest an amount of capital expenditure equal to
its cumulative vendor's capital award. For all tracks, except for  Aque-
duct  racetrack,  the  amount  of any vendor's capital award that is not
used during any one year period may  be  carried  over  into  subsequent
years  ending  before  April  first,  two  thousand thirteen. Any amount
attributable to a capital expenditure approved prior to April first, two
thousand thirteen and completed before April first, two thousand fifteen
shall be eligible to receive the vendor's capital award.  In  the  event
that  a  vendor  track's  capital expenditures, approved by the division
prior to April first, two thousand thirteen and completed prior to April
first, two thousand fifteen, exceed the vendor track's cumulative  capi-
tal  award  during the five year period ending April first, two thousand
thirteen, the vendor shall continue to receive the capital  award  after
April  first, two thousand thirteen until such approved capital expendi-
tures are paid to the vendor track subject to  any  required  co-invest-
ment.  In  no  event  shall  any vendor track that receives a vendor fee
pursuant to clause (F) or (G) of this subparagraph  be  eligible  for  a
vendor's  capital  award  under  this  section. Any operator of a vendor
track which has received a vendor's capital award,  choosing  to  divest
the capital improvement toward which the award was applied, prior to the
full depreciation of the capital improvement in accordance with general-
ly  accepted accounting principles, shall reimburse the state in amounts
equal to the total of any such awards. Any capital  award  not  approved
for  a  capital  expenditure at a video lottery gaming facility by April
first, two thousand thirteen shall be deposited into the  state  lottery
fund for education aid; and
  S 2. This act shall take effect immediately.