Provides that the additional vendor's marketing allowance retained by any operator of a racetrack located in the county of Westchester shall not exceed 8 percent of the total revenue wagered at the vendor track after payout for prizes and the remainder of such additional vendor's marketing allowance, not to exceed 25 million dollars, shall be paid to the Yonkers city school district board of education in quarterly payments for the support and maintenance of certain educational programs.
TITLE OF BILL: An act to amend the tax law, in relation to the distribution of the additional vendor's marketing allowance by any operator of a racetrack located in the county of Westchester
PURPOSE OR GENERAL IDEA OF BILL: Relates to the distribution the additional vendor's marketing allowance by any operator of a racetrack located in the county of Westchester.
SUMMARY OF SPECIFIC PROVISIONS: Amends subdivision b of section 1612 of the tax law, as amended by section 1 part O-1 of chapter 57 of the laws of 2009. The additional vendor's marketing allowance for any operator of a racetrack located in Westchester County expended by such operator for marketing shall not exceed 4% of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter in any year and the remainder of such additional vendor's marketing allowance for such operator calculated pursuant to this subdivision, not to exceed $25 million annually, shall be paid by such operator to the Yonkers city school District board of education in quarterly payments commencing July first, two thousand six to support and maintain educational programs established pursuant to the settlement agreement dated January 31, 2002 in the united States of America v. Yonkers Board of Education. Notwithstanding any other provision of law, rule or regulation to the contrary, such amount provided pursuant to this subdivision shall be in addition to any annual maintenance of effort requirement imposed on the state or city of Yonkers.
JUSTIFICATION: The revenues generated from the Video Lottery Terminals are expected to bring enormous benefits to the State of New York in the form of additional dollars to education. This bill will drive a portion of the revenues generated from the VLTs to the Yonkers city school District to support and maintain educational programs established settlement pursuant to the settlement agreement dated January 31, 2002 in the United States if America v. Yonkers Board of Education. Under this legislation, the Yonkers schools would receive 4 percent of the first $100 million of revenues from the VLTs in Yonkers at 1 percent for each subsequent $100 million.
PRIOR LEGISLATIVE HISTORY: S.3283-A of 2010 - Held in Racing, Gaming & Wagering A.3179 of 2008 A.8881 of 2006
EFFECTIVE DATE: July 1, 2014
STATE OF NEW YORK ________________________________________________________________________ 2391 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to the distribution of the additional vendor's marketing allowance by any operator of a racetrack located in the county of Westchester THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph (iii) of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by section 1 of part 0-1 of chapter 57 of the laws of 2009, is amended to read as follows: (iii) less an additional vendor's marketing allowance at a rate of ten percent for the first one hundred million dollars annually and eight percent thereafter of the total revenue wagered at the vendor track after payout for prizes to be used by the vendor track for the marketing and promotion and associated costs of its video lottery gaming oper- ations and pari-mutuel horse racing operations, as long as any such costs associated with pari-mutuel horse racing operations simultaneously encourage increased attendance at such vendor's video lottery gaming facilities, consistent with the customary manner of marketing comparable operations in the industry and subject to the overall supervision of the division; provided, however, that the additional vendor's marketing allowance shall not exceed eight percent in any year for any operator of a racetrack located in the county of
[Westchester or]Queens; provided, however, a vendor track that receives a vendor fee pursuant to clause (G) of subparagraph (ii) of this paragraph shall not receive the addi- tional vendor's marketing allowance; AND PROVIDED, FURTHER, THAT THE ADDITIONAL VENDOR'S MARKETING ALLOWANCE FOR ANY OPERATOR OF A RACETRACK LOCATED IN THE COUNTY OF WESTCHESTER EXPENDED BY SUCH OPERATOR FOR MARKETING SHALL NOT EXCEED EIGHT PERCENT OF THE TOTAL REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES PURSUANT TO THIS CHAPTER IN ANYEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05545-01-3 S. 2391 2
YEAR AND THE REMAINDER OF SUCH ADDITIONAL VENDOR'S MARKETING ALLOWANCE FOR SUCH OPERATOR CALCULATED PURSUANT TO THIS SUBDIVISION, NOT TO EXCEED TWENTY-FIVE MILLION DOLLARS ANNUALLY, SHALL BE PAID BY SUCH OPERATOR TO THE YONKERS CITY SCHOOL DISTRICT BOARD OF EDUCATION IN QUARTERLY PAYMENTS COMMENCING JULY FIRST, TWO THOUSAND FOURTEEN TO SUPPORT AND MAINTAIN EDUCATIONAL PROGRAMS ESTABLISHED PURSUANT TO THE SETTLEMENT AGREEMENT DATED JANUARY THIRTY-FIRST, TWO THOUSAND TWO IN UNITED STATES OF AMERICA V. YONKERS BOARD OF EDUCATION. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO THE CONTRARY, SUCH AMOUNT PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE IN ADDITION TO ANY ANNUAL MAINTENANCE OF EFFORT REQUIREMENT IMPOSED ON THE STATE OR CITY OF YONK- ERS. In establishing the vendor fee, the division shall ensure the maximum lottery support for education while also ensuring the effective implementation of section sixteen hundred seventeen-a of this article through the provision of reasonable reimbursements and compensation to vendor tracks for participation in such program. Within twenty days after any award of lottery prizes, the division shall pay into the state treasury, to the credit of the state lottery fund, the balance of all moneys received from the sale of all tickets for the lottery in which such prizes were awarded remaining after provision for the payment of prizes as herein provided. Any revenues derived from the sale of adver- tising on lottery tickets shall be deposited in the state lottery fund. S 2. This act shall take effect July 1, 2014.