S T A T E O F N E W Y O R K
________________________________________________________________________
4645
2017-2018 Regular Sessions
I N A S S E M B L Y
February 3, 2017
___________
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 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 section
1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
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 and in the case
of Aqueduct, the video lottery terminal facility operator, 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, 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 annual limit, provided, however, that any such capital award for
the Aqueduct video lottery terminal facility operator shall be one
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02966-01-7
A. 4645 2
percent of the total revenue wagered at the video lottery terminal
facility after payout for prizes pursuant to this chapter until the
earlier of the designation of one thousand video lottery devices as
hosted pursuant to paragraph four of subdivision a of section sixteen
hundred seventeen-a of this chapter or April first, two thousand nine-
teen and shall then be four percent of the total revenue wagered at the
video lottery terminal facility after payout for prizes pursuant to this
chapter, provided, further, that such capital award shall only be
provided pursuant to an agreement with the operator to construct an
expansion of the facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million dollars.
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,
and except for Aqueduct racetrack 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 seventeen. Any amount attributable to a capi-
tal expenditure approved prior to April first, two thousand seventeen
and completed before April first, two thousand nineteen; or approved
prior to April first, two thousand twenty-one and completed before April
first, two thousand twenty-three 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 seventeen and completed prior to
April first, two thousand nineteen, exceed the vendor track's cumulative
capital award during the five year period ending April first, two thou-
sand seventeen, the vendor shall continue to receive the capital award
after April first, two thousand seventeen 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 seventeen shall be deposited into the state lottery
fund for education aid; and
§ 2. This act shall take effect immediately.