S T A T E O F N E W Y O R K
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961--A
Cal. No. 45
2015-2016 Regular Sessions
I N A S S E M B L Y
January 8, 2015
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Ways and Means -- advanced to a third reading, amended and
ordered reprinted, retaining its place on the order of third reading
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 amended by section 1 of part
MM of chapter 59 of the laws of 2015, 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] NINE hundred video gaming machines, and except for a
vendor track located west of State Route 14 from Sodus Point to the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05388-03-6
A. 961--A 2
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 sixteen. Any amount attributable
to a capital expenditure approved prior to April first, two thousand
sixteen and completed before April first, two thousand eighteen; or
approved prior to April first, two thousand twenty and completed before
April first, two thousand twenty-two 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 sixteen and completed prior to
April first, two thousand eighteen, exceed the vendor track's cumulative
capital award during the five year period ending April first, two thou-
sand sixteen, the vendor shall continue to receive the capital award
after April first, two thousand sixteen 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 sixteen shall be deposited into the state lottery
fund for education aid; and
S 2. This act shall take effect immediately.