Senate Bill S6659

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6659
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                               June 9, 2017
                                ___________
 
 Introduced  by  Sens.  KLEIN, BONACIC -- read twice and ordered printed,
   and when printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation  to  vendor  fees  and  capital
   awards  at  facilities  in  Westchester  county and the Aqueduct video
   lottery gaming facility

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Clause (B) of subparagraph (ii) of paragraph 1 of subdivi-
 sion b of section 1612 of the tax law, as amended by chapter 174 of  the
 laws of 2013, is amended to read as follows:
   (B)  having one thousand one hundred or more video gaming machines, at
 a rate of thirty-one percent of the total revenue wagered at the  vendor
 track after payout for prizes pursuant to this chapter[, except for such
 facility  located  in  the county of Westchester, in which case the rate
 shall be thirty percent until March thirty-first, two thousand twelve].
   Notwithstanding the foregoing, not later than [April first, two  thou-
 sand twelve] JULY FIRST, TWO THOUSAND SEVENTEEN, THE VENDOR FEE FOR SUCH
 FACILITY  LOCATED  IN WESTCHESTER COUNTY shall become [thirty-one] THIR-
 TY-TWO PERCENT and remain at that level thereafter; and except for Aque-
 duct racetrack, in which case  the  vendor  fee  shall  be  thirty-eight
 percent  of  the  total revenue wagered at the vendor track after payout
 for prizes pursuant to this chapter;
   § 2. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivision  b
 of  section  1612  of the tax law, as amended by section 1 of part QQ of
 chapter 59 of the laws of 2017, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13133-01-7

 S. 6659                             2
 
 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 A VENDOR TRACK LOCATED IN WESTCHESTER COUN-
 TY  FOR  WHICH  THERE  SHALL  BE NO ANNUAL LIMIT AND 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 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] ARTICLE or April
 first, two thousand nineteen 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 FOR THE AQUEDUCT VIDEO LOTTERY GAMING FACILITY  OPERATOR  AND  THE
 VENDOR TRACK LOCATED IN WESTCHESTER COUNTY shall only be provided pursu-
 ant  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  FOR  THE  AQUEDUCT
 VIDEO  LOTTERY  TERMINAL GAMING FACILITY OPERATOR AND ONE HUNDRED EIGHTY
 MILLION DOLLARS FOR THE VENDOR  TRACK  LOCATED  IN  WESTCHESTER  COUNTY.
 Except for tracks having less than one thousand one 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 AND EXCEPT FOR THE VENDOR TRACK LOCATED IN WEST-
 CHESTER COUNTY 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  eighteen.  Any  amount  attributable  to a capital expenditure
 approved prior to April  first,  two  thousand  eighteen  and  completed
 before  April  first,  two  thousand  twenty; or approved prior to April
 first, two thousand twenty-two and completed  before  April  first,  two
 thousand  twenty-four  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 division  prior  to
 April  first,  two thousand eighteen and completed prior to April first,
 two thousand twenty, exceed the vendor track's cumulative capital  award
 during  the  five year period ending April first, two thousand eighteen,
 the vendor shall continue to  receive  the  capital  award  after  April
 first,  two  thousand  eighteen until such approved capital expenditures
 are paid to the vendor track subject to any required  co-investment.  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  capi-

 S. 6659                             3
 
 tal  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 depre-
 ciation of the capital improvement in accordance with generally 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 thou-
 sand eighteen shall be deposited into the state lottery fund for  educa-
 tion aid; and
   §  3.  This act shall take effect immediately, except that if this act
 shall have become a law on or after July 1, 2017  this  act  shall  take
 effect immediately and shall be deemed to be in full force and effect on
 and after July 1, 2017.