Relates to video gaming machines and disposition of revenues.
TITLE OF BILL: An act to amend the tax law, in relation to video gaming machines and disposition of revenues
PURPOSE: To allow medium size gaming facilities in New York to receive additional investment.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends Clauses A, B, and H of paragraph 1 of subdivision b of section 1612 of the tax law to increase the threshold of gaming machines from one thousand one hundred to one thousand nine hundred.
Section 2 is the effective date of the bill.
JUSTIFICATION: This legislation would enable so that the two medium sized facilities (Finger Lakes Saratoga) to qualify for full investment so these facilities could reinvest in additional amenities and expanded gaming space. This would drive much needed job creation and additional VGM revenues for the State.
Currently, the 4 smaller facilities (less than 1,100 machines) have this benefit and the medium sized facilities do not. Penalizing these two quality operators who also have by far the lowest share of their gaming revenue among the NY operators hinders their ability to add more customer amenities and machines and ultimately increase aid to education.
The purse account, the facility and the state all benefit when we grow the business.
LEGISLATIVE HISTORY: S5805A of 2012
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5295--A 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________Introduced by Sen. NOZZOLIO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to video gaming machines and disposition of revenues 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 separately amended by chapters 174 and 175 of the laws of 2013, 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 shallEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01642-02-4 S. 5295--A 2
be no vendor's capital awards. Except for tracks having less than one thousand
[one]NINE hundred video gaming machines, and except for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, 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 Aqueduct 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 fourteen. Any amount attribut- able to a capital expenditure approved prior to April first, two thou- sand fourteen and completed before April first, two thousand sixteen; or approved prior to April first, two thousand eighteen and completed before April first, two thousand twenty for a vendor track located west of State Route 14 from Sodus Point to the Pennsylvania border within New York, shall be eligible to receive the vendor's capital award. In the event that a vendor track's capital expenditures, approved by the divi- sion prior to April first, two thousand fourteen and completed prior to April first, two thousand sixteen, exceed the vendor track's cumulative capital award during the five year period ending April first, two thou- sand fourteen, the vendor shall continue to receive the capital award after April first, two thousand fourteen until such approved capital expenditures are paid to the vendor track subject to any required co-in- vestment. 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 fourteen shall be deposited into the state lottery fund for education aid; and S 2. This act shall take effect immediately.