S T A T E O F N E W Y O R K
________________________________________________________________________
7170
2015-2016 Regular Sessions
I N A S S E M B L Y
April 27, 2015
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to investment in the racing
industry in consideration for operation of a video lottery gaming
facility
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 2 of subdivision b of section 1612 of the tax
law, as amended by section 1 of part OO of chapter 59 of the laws of
2014, is amended to read as follows:
2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth in this subdivision. With the
exception of Aqueduct racetrack or a facility in the county of Nassau or
Suffolk operated by a corporation established pursuant to section five
hundred two of the racing, pari-mutuel wagering and breeding law, each
such track shall dedicate a portion of its vendor fees, received pursu-
ant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii)
of paragraph one of this subdivision, for the purpose of enhancing purs-
es at such track, in an amount equal to eight and three-quarters percent
of the total revenue wagered at the vendor track after pay out for
prizes, PROVIDED THAT IN THE EVENT A TRACK IS GRANTED SUBSEQUENT TO TWO
THOUSAND FOURTEEN EITHER (A) AN INCREASED VENDOR'S FEE, OR (B) A
DECREASE IN THE TAX RATE, SUCH PURSE ENHANCEMENT SHALL BE FURTHER
ENHANCED IN AN AMOUNT IN PROPORTION TO THE AFOREMENTIONED INCREASE OR
DECREASE IN RELATION TO THE PRESENT VENDOR'S FEE OR TAX RATE. THE
CURRENT PROPORTION OF THE NET WIN DUE THE PURSES AND BREEDER'S FUND IS
EQUAL TO A FIXED PERCENTAGE OF THE TWO THOUSAND FOURTEEN VENDOR'S FEE.
One percent of the gross purse enhancement amount, as required by this
subdivision, shall be paid to the gaming commission to be used exclu-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10597-01-5
A. 7170 2
sively to promote and ensure equine health and safety in New York. Any
portion of such funding to the gaming commission unused during a fiscal
year shall be returned to the video lottery gaming operators on a pro
rata basis in accordance with the amounts originally contributed by each
operator and shall be used for the purpose of enhancing purses at such
track. One and one-half percent of the gross purse enhancement amount at
a thoroughbred track, as required by this subdivision, shall be paid to
an account established pursuant to section two hundred twenty-one-a of
the racing, pari-mutuel wagering and breeding law to be used exclusively
to provide health insurance for jockeys. In addition, with the exception
of Aqueduct racetrack or a facility in the county of Nassau or Suffolk
operated by a corporation established pursuant to section five hundred
two of the racing, pari-mutuel wagering and breeding law, one and one-
quarter percent of total revenue wagered at the vendor track after pay
out for prizes, received pursuant to clause (A), (B), (C), (D), (E),
(F), or (G) of subparagraph (ii) of paragraph one of this subdivision,
shall be distributed to the appropriate breeding fund for the manner of
racing conducted by such track PROVIDED THAT IN THE EVENT A TRACK IS
GRANTED SUBSEQUENT TO TWO THOUSAND FOURTEEN EITHER (A) AN INCREASED
VENDOR'S FEE, OR (B) A DECREASE IN THE TAX RATE, SUCH PURSE ENHANCEMENT
SHALL BE FURTHER ENHANCED IN AN AMOUNT IN PROPORTION TO THE AFOREMEN-
TIONED INCREASE OR DECREASE IN RELATION TO THE PRESENT VENDOR'S FEE OR
TAX RATE. THE CURRENT PROPORTION OF THE NET WIN DUE THE PURSES AND
BREEDER'S FUND IS EQUAL TO A FIXED PERCENTAGE OF THE TWO THOUSAND FOUR-
TEEN VENDOR'S FEE.
Provided, further, that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed five years, with
the organization authorized to represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or to race
fewer dates than required herein.
S 2. This act shall take effect immediately.