STATE OF NEW YORK ________________________________________________________________________ 3610 2023-2024 Regular Sessions IN ASSEMBLY 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: 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08419-01-3
A. 3610 2 1 follows; provided, however, should a licensee have agreed within its 2 application to supplement the tax with a binding supplemental fee 3 payment exceeding the aforementioned tax rate, such tax and supplemental 4 fee shall apply for a gaming facility: 5 (a) in region two, forty-five percent of gross gaming revenue from 6 slot machines and ten percent of gross gaming revenue from all other 7 sources. 8 (b) in region one, thirty-nine percent of gross gaming revenue from 9 slot machines and ten percent of gross gaming revenue from all other 10 sources. 11 (c) in region five for the casino located in Nichols, New York, [thir- 12 ty-seven] thirty percent of gross gaming revenue from slot machines and 13 ten percent of gross gaming revenue from all other sources. 14 § 3. 1. As a condition of the lower slot machine tax rate in region 15 five provided by this act, such gaming facility shall provide an initial 16 report to the governor, the speaker of the assembly, the temporary pres- 17 ident of the senate, and the commission detailing the projected use of 18 funds resulting from such tax adjustment and a plan that prescribes the 19 manner in which the licensed gaming facility receiving the reduction in 20 its slot machine tax rate will rebuild their economic infrastructure 21 through the rehiring of laid-off employees or capital improvements 22 designed to create revenue and create new jobs. Such plan shall also 23 clearly establish quarterly and annual employment goals of increasing 24 full-time employees. Such initial report and accompanying plan shall be 25 due thirty days after the effective date of this section. Thereafter, an 26 annual report shall be made to the governor, the speaker of the assem- 27 bly, the temporary president of the senate, and the commission detailing 28 actual use of the funds resulting from such tax adjustment. Such report 29 shall include, but not be limited to, any impact on employment levels 30 since receiving the funds, an accounting of the use of such funds, any 31 other measures implemented to improve the financial stability of the 32 gaming facility, any relevant information that helped in the determi- 33 nation of such slot tax rate reduction, and any other information as 34 deemed necessary by the commission. Such report shall be due no later 35 than the first day of the fourth quarter after such tax rate has been 36 granted. 37 2. (a) At the conclusion of each year, the licensed gaming facility 38 shall provide an affirmation in writing to the commission stating the 39 employment goal in subdivision 1 of this section was either met or not 40 met as described in the initial report. If the licensed gaming facility 41 is found to have not adhered to the plan by the commission, then the 42 applicable slot tax rate shall be adjusted at the discretion of the 43 commission as follows: 44 (1) If the actual employment number is more than fifty percent less 45 than the employment goal, then the slot tax rate shall be increased by 46 ten percentage points. 47 (2) If the actual employment number is more than forty percent less 48 than the employment goal, then the slot tax rate shall be increased by 49 eight percentage points. 50 (3) If the actual employment number is more than thirty percent less 51 than the employment goal, then the slot tax rate shall be increased by 52 six percentage points. 53 (4) If the actual employment number is more than twenty percent less 54 than the employment goal, then the slot tax rate shall be increased by 55 four percentage points.
A. 3610 3 1 (5) If the actual employment number is more than ten percent less than 2 the employment goal, then the slot tax rate shall be increased by two 3 percentage points. 4 (b) Such finding and the reasoning thereof shall occur no later than 5 thirty days following submission of the written affirmation. 6 § 4. This act shall take effect immediately and shall expire and be 7 deemed repealed five years after such date; provided, however, that the 8 amendments to subdivision 1 of section 1351 of the racing, pari-mutuel 9 wagering and breeding law made by section one of this act shall be 10 subject to the expiration and reversion of such subdivision when upon 11 such date the provisions of section two of this act shall take effect.