NY State Senate Bill S5108

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (2)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to racing, gaming and wagering
Mar 08, 2017	referred to racing, gaming and wagering

S5108 (ACTIVE) - Details

Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Tax Law
Laws Affected:: Amd §1604, Tax L

S5108 (ACTIVE) - Summary

Increases the commission paid to lottery sales agents to eight percent.

S5108 (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S5108

 TITLE OF BILL :

An act to amend the tax law, in relation to increasing the commission
paid to lottery sales agents

 PURPOSE OR GENERAL IDEA OF BILL :

This bill would increase the New York Lottery agent commission rate to
8%.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1 amends Paragraph 9 of subdivision a of section 1604 of the
tax law to govern limitations the division may place on compensation
necessary to assure adequate availability of lottery tickets.

Section 2 amends Section 1604 of the tax law to require the division
to set a compensation rate of eight percent for each ticket sold to a
licensed agent.

 JUSTIFICATION :

Lottery "agents" consist of neighborhood delis, bodegas, taverns,
convenience stores, pharmacies, gas stations, restaurants, grocers,

newsstands, bowling alleys, truck stops, stationary stores, beverage
centers, and liquor stores. Many of these are family-run enterprises.

When the New York Lottery was created fifty years ago, the division
decided that stores selling tickets would receive a commission. The
commission rate was set at six percent, meaning that agents make six
cents on a one-dollar scratch ticket. Today, the commission rate on a
one-dollar scratch ticket remains at six percent.

Since the creation of the New York Lottery, however, the state minimum
wage has increased 547% and will continue to climb over the next four
years. Lottery agents' energy, property, and payroll taxes have since
increased, along with the costs of insurance, regulatory compliance,
waste disposal, and other operating expenses.

Additionally, exposure to loss from theft increased when the New York
Lottery expanded the number of instant games and introduced $5, $10,
$20, and $30 dollar tickets.

New York also joined the multi-state Mega Millions and Powerball
online games, whose occasional big jackpots build foot traffic but
also create longer lines that deter non-lottery customers unwilling to
wait for gas, coffee, food, or the newspaper.

Increasing the lottery agent commission to eight percent will help the
17,700 small businesses who have been and continue to be harmed by the
aforementioned costs.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None to the state.

 EFFECTIVE DATE :
This act shall take effect immediately.

S5108 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5108

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                              March 8, 2017
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

AN  ACT  to  amend the tax law, in relation to increasing the commission
  paid to lottery sales agents

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Paragraph  9  of subdivision a of section 1604 of the tax
law, as added by chapter 92 of the laws of 1976, is amended to  read  as
follows:
  9.  The  [compensation in such manner and amounts and subject to such]
limitations ON COMPENSATION as the division may  determine  to  licensed
sellers  of lottery tickets, but only where the division finds that such
[compensation is] LIMITATIONS ARE necessary to  assure  adequate  avail-
ability  of  lottery  tickets,  and  that the public convenience will be
served thereby.
  § 2. Section 1604 of the tax law is amended by adding a  new  subdivi-
sion d to read as follows:
  D.  THE  DIVISION  SHALL  SET A COMPENSATION RATE OF EIGHT PERCENT FOR
EACH TICKET SOLD TO A LICENSED AGENT.  THE  DIVISION  SHALL  ALLOW  SUCH
COMPENSATION  BY PERMITTING A LICENSED AGENT TO DEDUCT SUCH COMPENSATION
RATE FROM THE FACE VALUE OTHERWISE PAYABLE BY THE LICENSED AGENT TO  THE
DIVISION.
  §  3.  This  act shall take effect on July 1, 2017; provided, however,
that effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act  on  its
effective  date  are authorized and directed to be made and completed on
or before such effective date.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10520-01-7

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The New York State Senate

senate Bill S5108

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Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

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S5108 (ACTIVE) - Details

S5108 (ACTIVE) - Summary

S5108 (ACTIVE) - Sponsor Memo

S5108 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5108

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Sponsored By

Tony Avella

Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Your Voice

Actions

S5108 (ACTIVE) - Details

S5108 (ACTIVE) - Summary

S5108 (ACTIVE) - Sponsor Memo

S5108 (ACTIVE) - Bill Text download pdf

Comments