Relates to capital awards to vendor tracks.
TITLE OF BILL: An act to amend the tax law, in relation to capital awards to vendor tracks
PURPOSE: The bill will allow the video lottery vendor track located at Monticello Raceway to participate in vendor's capital award.
SUMMARY OF PROVISIONS: Section 1 of the bill amends clause (H) of subparagraph (ii) of paragraph 1 of subdivision b of Section 1512 of the Tax Law as amended by section 1 of part 0-1 of Chapter 57 of the laws of 2009.
Section 2 of the bill provides for an immediate effective date.
JUSTIFICATION: Original legislation providing vendor's capital award at video lottery vendor tracks enacted contemplated that operations at the Monticello Raceway would be relocated to the former Concord Resort. As a result Monticello Raceway was excluded from participating in Vendor Capital Awards.
I has since been determined that Monticello Raceway will remain open as vendor facility. As a result it is appropriate that Monticello Raceway be permitted to participate in the Vendor Capital Awards to the same extent as any other vendor track.
BUDGET IMPLICATIONS: Undetermined
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 9003 2009-2010 Regular Sessions IN ASSEMBLY June 18, 2009 ___________Introduced by M. of A. GUNTHER -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to capital awards to vendor tracks THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- sion b of section 1612 of the tax law, as amended by section 1 of part O-1 of chapter 57 of the laws of 2009, is amended to read as follows: (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 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 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 AqueductEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14441-01-9 A. 9003 2
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 attribut- able to a capital expenditure approved prior to April first, two thou- sand 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.