S T A T E O F N E W Y O R K
________________________________________________________________________
8801
I N S E N A T E
April 19, 2022
___________
Introduced by Sen. ADDABBO -- 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 racing, pari-mutuel wagering and breeding law, in
relation to the tax on gaming revenues in certain regions; and provid-
ing for the repeal of such provisions upon the expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1 of section 1351 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of part OOO of chapter 59 of the laws of 2021, is amended to read as
follows:
(a) For a gaming facility in zone two, there is hereby imposed a tax
on gross gaming revenues. The amount of such tax imposed shall be as
follows; provided, however, should a licensee have agreed within its
application to supplement the tax with a binding supplemental fee
payment exceeding the aforementioned tax rate, such tax and supplemental
fee shall apply for a gaming facility:
(1) in region two, forty-five percent of gross gaming revenue from
slot machines and ten percent of gross gaming revenue from all other
sources.
(2) in region one, thirty-nine percent of gross gaming revenue from
slot machines and ten percent of gross gaming revenue from all other
sources.
(3) in region five FOR THE CASINO LOCATED IN NICHOLS, NEW YORK, [thir-
ty-seven] THIRTY percent of gross gaming revenue from slot machines and
ten percent of gross gaming revenue from all other sources.
§ 2. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering
and breeding law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
1. For a gaming facility in zone two, there is hereby imposed a tax on
gross gaming revenues. The amount of such tax imposed shall be as
follows; provided, however, should a licensee have agreed within its
application to supplement the tax with a binding supplemental fee
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14936-04-2
S. 8801 2
payment exceeding the aforementioned tax rate, such tax and supplemental
fee shall apply for a gaming facility:
(a) in region two, forty-five percent of gross gaming revenue from
slot machines and ten percent of gross gaming revenue from all other
sources.
(b) in region one, thirty-nine percent of gross gaming revenue from
slot machines and ten percent of gross gaming revenue from all other
sources.
(c) in region five FOR THE CASINO LOCATED IN NICHOLS, NEW YORK, [thir-
ty-seven] THIRTY percent of gross gaming revenue from slot machines and
ten percent of gross gaming revenue from all other sources.
§ 3. 1. As a condition of the lower slot machine tax rate in region
five provided by this act, such gaming facility shall provide an initial
report to the governor, the speaker of the assembly, the temporary pres-
ident of the senate, and the commission detailing the projected use of
funds resulting from such tax adjustment and a plan that prescribes the
manner in which the licensed gaming facility receiving the reduction in
its slot machine tax rate will rebuild their economic infrastructure
through the rehiring of laid-off employees or capital improvements
designed to create revenue and create new jobs. Such plan shall also
clearly establish quarterly and annual employment goals of increasing
full-time employees. Such initial report and accompanying plan shall be
due thirty days after the effective date of this section. Thereafter, an
annual report shall be made to the governor, the speaker of the assem-
bly, the temporary president of the senate, and the commission detailing
actual use of the funds resulting from such tax adjustment. Such report
shall include, but not be limited to, any impact on employment levels
since receiving the funds, an accounting of the use of such funds, any
other measures implemented to improve the financial stability of the
gaming facility, any relevant information that helped in the determi-
nation of such slot tax rate reduction, and any other information as
deemed necessary by the commission. Such report shall be due no later
than the first day of the fourth quarter after such tax rate has been
granted.
2. (a) At the conclusion of each year, the licensed gaming facility
shall provide an affirmation in writing to the commission stating the
employment goal in subdivision 1 of this section was either met or not
met as described in the initial report. If the licensed gaming facility
is found to have not adhered to the plan by the commission, then the
applicable slot tax rate shall be adjusted at the discretion of the
commission as follows:
(1) If the actual employment number is more than fifty percent less
than the employment goal, then the slot tax rate shall be increased by
ten percentage points.
(2) If the actual employment number is more than forty percent less
than the employment goal, then the slot tax rate shall be increased by
eight percentage points.
(3) If the actual employment number is more than thirty percent less
than the employment goal, then the slot tax rate shall be increased by
six percentage points.
(4) If the actual employment number is more than twenty percent less
than the employment goal, then the slot tax rate shall be increased by
four percentage points.
(5) If the actual employment number is more than ten percent less than
the employment goal, then the slot tax rate shall be increased by two
percentage points.
S. 8801 3
(b) Such finding and the reasoning thereof shall occur no later than
thirty days following submission of the written affirmation.
§ 4. This act shall take effect immediately and shall expire and be
deemed repealed five years after such date; provided, however, that the
amendments to subdivision 1 of section 1351 of the racing, pari-mutuel
wagering and breeding law made by section one of this act shall be
subject to the expiration and reversion of such subdivision when upon
such date the provisions of section two of this act shall take effect.