S T A T E O F N E W Y O R K
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6144--A
2023-2024 Regular Sessions
I N A S S E M B L Y
April 3, 2023
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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:
Section 1. Subdivision 1 of section 1351 of the racing, pari-mutuel
wagering and breeding law, as amended by section 1 of part OOO of chap-
ter 59 of the laws of 2021, is amended to read as follows:
1. (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, thirty-seven percent of gross gaming revenue from
slot machines and ten percent of gross gaming revenue from all other
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
FIVE, FOR THE PERIOD DURING WHICH BOTH OF THE FOLLOWING CRITERIA ARE MET
(I) ANY FACILITY'S TAX RATE IS ADJUSTED BY THE COMMISSION PURSUANT TO
PARAGRAPH (B) OF THIS SUBDIVISION, AND (II) A VENDOR TRACK THAT IS
LOCATED WITHIN ONEIDA COUNTY, WITHIN FIFTEEN MILES OF A NATIVE AMERICAN
CLASS III GAMING FACILITY MAINTAINS AT LEAST SEVENTY PERCENT OF FULL-
TIME EQUIVALENT EMPLOYEES AS THEY EMPLOYED IN THE YEAR TWO THOUSAND
SIXTEEN, THE TAX RATE ON FACILITIES LOCATED IN THE TIOGA COUNTY PORTION
OF REGION FIVE SHALL BE THIRTY PERCENT OF GROSS GAMING REVENUE FROM SLOT
MACHINES, AND TEN PERCENT OF GROSS GAMING REVENUE FROM ALL OTHER SOURC-
ES; AND PROVIDED FURTHER, THAT ANY SUCH FACILITY SHALL PROVIDE AN
INITIAL REPORT TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPO-
RARY PRESIDENT 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 THE
CREATION OF 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 NINETY DAYS AFTER SUCH
REDUCTION GOES INTO EFFECT. THEREAFTER, AN ANNUAL REPORT SHALL BE MADE
TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY, THE TEMPORARY PRESIDENT OF
THE SENATE, AND THE COMMISSION DETAILING ACTUAL USE OF THE FUNDS RESULT-
ING 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, 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 IN EACH YEAR SUCH
TAX RATE HAS BEEN GRANTED.
(b) (1) Notwithstanding the rates in paragraph (a) of this subdivi-
sion, a gaming facility may petition the commission to lower the tax
rate applicable to its slot machines to no lower than thirty percent. In
analyzing such request, the commission shall evaluate the petition using
the following criteria:
(i) the ability of the licensee to satisfy the license criterion of
financial stability absent the tax rate reduction;
(ii) a complete examination of all financial projections, as well as
gaming revenues generated for the prior annual period;
(iii) the licensee's intended use of the funds resulting from a tax
adjustment;
(iv) the inability of the operator to remain competitive under the
current tax structure;
(v) positions advanced by other gaming operators in the state in
response to the petition;
(vi) the impact on the competitive landscape;
(vii) other economic factors such as employment and the potential
impact upon other businesses in the region; and
(viii) the public interest to be served by a tax adjustment, including
the impact upon the state in the event the operator is unable to remain
financially viable.
(2) The commission shall report their recommendation solely based on
the criteria listed in subparagraph one of this paragraph to the direc-
tor of the division of budget who will make a final approval.
(3) (i) As a condition of the lower slot machine tax rate, such gaming
facility shall provide an initial report to the governor, the speaker of
the assembly, the temporary president of the senate, and the commission
A. 6144--A 3
detailing the projected use of funds resulting from such tax adjustment
and a plan that prescribes the manner in which the licensed gaming
facility potentially receiving the reduction in its slot machine tax
rate will rebuild their economic infrastructure through the rehiring of
laid-off employees or the creation of 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 at the time a facility is granted a tax adjustment. 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.
(ii) (A) At the conclusion of each year, a licensed gaming facility
shall provide an affirmation in writing to the commission stating the
employment goal in clause (i) of this subparagraph 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.
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.
(iii) A licensed gaming facility may petition the commission to lower
the tax rate applicable to its slot machines to no lower than thirty
percent no more than once annually after the effective date of the chap-
ter of the laws of two thousand twenty-one which amended this subdivi-
sion. A licensed gaming facility may request a revision to its plan in
its initial report due to unforeseen circumstances.
§ 2. Clause (B) of subparagraph (iii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as added by section 1 of part EE of
chapter 59 of the laws of 2019, is amended to read as follows:
(B) for a vendor track that is located within Oneida county, within
fifteen miles of a Native American class III gaming facility, such addi-
tional vendor fee shall be six and four-tenths percent of the total
revenue wagered at the vendor after payout for prizes pursuant to this
A. 6144--A 4
chapter. The vendor track shall forfeit this additional vendor fee for
any time period that the vendor track does not maintain at least [nine-
ty] SEVENTY percent of full-time equivalent employees as they employed
in the year two thousand sixteen.
§ 3. Section 3 of 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, is amended to read as follows:
§ 3. This act shall take effect immediately; provided, however, clause
(B) of subparagraph (iii) of paragraph 1 of subdivision b of section
1612 of the tax law as added by section one of this act shall take
effect June 30, 2019 and shall expire and be deemed repealed March 31,
[2023] 2027.
§ 4. This act shall take effect immediately; provided, however, that
the amendments to subdivision 1 of section 1351 of the racing, pari-mu-
tuel 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 1 of
subdivision 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.