S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3610
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 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:
 
   Section  1.  Paragraph  (a)  of  subdivision  1 of section 1351 of the
 racing, pari-mutuel wagering and breeding law, as amended by  section  1
 of  part  OOO  of  chapter 59 of the laws of 2021, is amended to read as
 follows:
   (a) For a gaming facility in zone two, there is hereby imposed  a  tax
 on  gross  gaming  revenues.  The amount of such tax imposed shall be as
 follows; provided, however, should a licensee  have  agreed  within  its
 application  to  supplement  the  tax  with  a  binding supplemental fee
 payment exceeding the aforementioned tax rate, such tax and supplemental
 fee shall apply for a gaming facility:
   (1) in region two, forty-five percent of  gross  gaming  revenue  from
 slot  machines  and  ten  percent of gross gaming revenue from all other
 sources.
   (2) in region one, thirty-nine percent of gross  gaming  revenue  from
 slot  machines  and  ten  percent of gross gaming revenue from all other
 sources.
   (3) in region five FOR THE CASINO LOCATED IN NICHOLS, NEW YORK, [thir-
 ty-seven] THIRTY percent of gross gaming revenue from slot machines  and
 ten percent of gross gaming revenue from all other sources.
   § 2. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering
 and  breeding  law,  as  added  by  chapter  174 of the laws of 2013, is
 amended to read as follows:
   1. For a gaming facility in zone two, there is hereby imposed a tax on
 gross gaming revenues. The amount  of  such  tax  imposed  shall  be  as

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08419-01-3
              

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 follows;  provided,  however,  should  a licensee have agreed within its
 application to supplement  the  tax  with  a  binding  supplemental  fee
 payment exceeding the aforementioned tax rate, such tax and supplemental
 fee shall apply for a gaming facility:
   (a)  in  region  two,  forty-five percent of gross gaming revenue from
 slot machines and ten percent of gross gaming  revenue  from  all  other
 sources.
   (b)  in  region  one, thirty-nine percent of gross gaming revenue from
 slot machines and ten percent of gross gaming  revenue  from  all  other
 sources.
   (c) in region five FOR THE CASINO LOCATED IN NICHOLS, NEW YORK, [thir-
 ty-seven]  THIRTY percent of gross gaming revenue from slot machines and
 ten percent of gross gaming revenue from all other sources.
   § 3. 1. As a condition of the lower slot machine tax  rate  in  region
 five provided by this act, such gaming facility shall provide an initial
 report to the governor, the speaker of the assembly, the temporary pres-
 ident  of  the senate, and the commission detailing the projected use of
 funds resulting from such tax adjustment and a plan that prescribes  the
 manner  in which the licensed gaming facility receiving the reduction in
 its slot machine tax rate will  rebuild  their  economic  infrastructure
 through  the  rehiring  of  laid-off  employees  or capital improvements
 designed to create revenue and create new jobs.  Such  plan  shall  also
 clearly  establish  quarterly  and annual employment goals of increasing
 full-time employees. Such initial report and accompanying plan shall  be
 due thirty days after the effective date of this section. Thereafter, an
 annual  report  shall be made to the governor, the speaker of the assem-
 bly, the temporary president of the senate, and the commission detailing
 actual use of the funds resulting from such tax adjustment. Such  report
 shall  include,  but  not be limited to, any impact on employment levels
 since receiving the funds, an accounting of the use of such  funds,  any
 other  measures  implemented  to  improve the financial stability of the
 gaming facility, any relevant information that helped  in  the  determi-
 nation  of  such  slot  tax rate reduction, and any other information as
 deemed necessary by the commission. Such report shall be  due  no  later
 than  the  first  day of the fourth quarter after such tax rate has been
 granted.
   2. (a) At the conclusion of each year, the  licensed  gaming  facility
 shall  provide  an  affirmation in writing to the commission stating the
 employment goal in subdivision 1 of this section was either met  or  not
 met  as described in the initial report. If the licensed gaming facility
 is found to have not adhered to the plan by  the  commission,  then  the
 applicable  slot  tax  rate  shall  be adjusted at the discretion of the
 commission as follows:
   (1) If the actual employment number is more than  fifty  percent  less
 than  the  employment goal, then the slot tax rate shall be increased by
 ten percentage points.
   (2) If the actual employment number is more than  forty  percent  less
 than  the  employment goal, then the slot tax rate shall be increased by
 eight percentage points.
   (3) If the actual employment number is more than thirty  percent  less
 than  the  employment goal, then the slot tax rate shall be increased by
 six percentage points.
   (4) If the actual employment number is more than twenty  percent  less
 than  the  employment goal, then the slot tax rate shall be increased by
 four percentage points.
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   (5) If the actual employment number is more than ten percent less than
 the employment goal, then the slot tax rate shall be  increased  by  two
 percentage points.
   (b)  Such  finding and the reasoning thereof shall occur no later than
 thirty days following submission of the written affirmation.
   § 4. This act shall take effect immediately and shall  expire  and  be
 deemed  repealed five years after such date; 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 be
 subject to the expiration and reversion of such  subdivision  when  upon
 such date the provisions of section two of this act shall take effect.