S T A T E O F N E W Y O R K
________________________________________________________________________
8734
2009-2010 Regular Sessions
I N A S S E M B L Y
June 4, 2009
___________
Introduced by M. of A. SPANO -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to eliminating the limitation
on the amount of the capital award payable to a video lottery gaming
vendor
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by chapter 140 of the
laws of 2008, is amended to read as follows:
(F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph, the track operator of a vendor track shall be eligible 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, entertainment facili-
ties, 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 thou-
sand dollars, except for Aqueduct racetrack, for which] PROVIDED, THAT
there shall be no vendor's capital awards FOR THE AQUEDUCT RACETRACK.
Except for tracks having less than one thousand one hundred video gaming
machines, each track operator shall be required to co-invest an amount
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10447-01-9
A. 8734 2
of capital expenditure equal to its cumulative vendor's capital awards.
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 thirteen. Any amount attributable to a capital expenditure
approved prior to April first, two thousand 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 thou-
sand thirteen and completed prior to April first, two thousand fifteen,
exceed the vendor track's cumulative capital 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 expenditures are paid to the vendor
track subject to any required co-investment. In no event shall such
track facility located in Sullivan county and within sixty miles from
any gaming facility in a contiguous state be eligible for a vendor's
capital award under this section, unless it shall have moved from such
location or the five year period commencing on April first, two thousand
eight has expired, whichever comes first. 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 reach-
ing the forty year straightline depreciation value of the improvement,
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 in the state lottery fund for education aid; and
S 2. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by chapter 286 of the laws of
2008, 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]
PROVIDED, THAT there shall be no vendor's capital awards FOR THE AQUE-
DUCT RACETRACK. 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 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 thirteen. Any amount attributable to a capital
A. 8734 3
expenditure approved prior to April first, two thousand thirteen and
completed before April first, two thousand fifteen shall be eligible to
receive the vendor's capital award. In no event shall any vendor track
that receives a vendor fee pursuant to clause (F) or (G) of this para-
graph 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 reaching the forty year straightline depreciation
value of the improvement, shall reimburse the state in amounts equal to
the total of any such awards; and
S 3. This act shall take effect immediately.