NY Rac, Pari-Mut Wag & Breeding L § 1351 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 13 - Destination Resort Gaming Title 6 - Taxation and Fees 1351 - Tax on Gaming Revenues; Permissive Supplemental Fee.

§  1351. Tax on gaming revenues; permissive supplemental fee. * 1. (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, thirty-seven percent of gross gaming revenue  from slot  machines  and  ten  percent of gross gaming revenue from all other sources.  (b)  (1)  Notwithstanding  the  rates  in  paragraph   (a)   of   this subdivision,  a gaming facility may petition the commission to lower the tax rate applicable to  its  slot  machines  to  no  lower  than  thirty percent.  In  analyzing  such request, the commission shall evaluate the petition using the following criteria:  (i) the ability of the licensee to satisfy the  license  criterion  of financial stability absent the tax rate reduction;  (ii)  a  complete examination of all financial projections, as well as gaming revenues generated for the prior annual period;  (iii) the licensee's intended use of the funds resulting  from  a  tax adjustment;  (iv)  the  inability  of  the operator to remain competitive under the current tax structure;  (v) positions advanced by other  gaming  operators  in  the  state  in response to the petition;  (vi) the impact on the competitive landscape;  (vii)  other  economic  factors  such  as employment and the potential impact upon other businesses in the region; and  (viii) the public interest to be served by a tax adjustment, including the impact upon the state in the event the operator is unable to  remain financially viable.  (2)  The  commission shall report their recommendation solely based on the criteria listed  in  subparagraph  one  of  this  paragraph  to  the director of the division of budget who will make a final approval.  (3) (i) As a condition of the lower slot machine tax rate, such gaming facility shall provide an initial report to the governor, the speaker of the  assembly, the temporary president 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 potentially receiving the reduction in  its  slot  machine  tax rate  will rebuild their economic infrastructure through the rehiring of laid-off employees or the creation of 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  at  the time a facility is granted a tax adjustment. Thereafter, an annual report shall  be  made  to  the  governor,  the  speaker  of  the assembly,  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 determination 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.  (ii)  (A)  At  the conclusion of each year, a licensed gaming facility shall provide an affirmation in writing to the  commission  stating  the employment goal in clause (i) of this subparagraph 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.  (B) Such finding and the reasoning thereof shall occur no  later  than thirty days following submission of the written affirmation.  (iii)  A licensed gaming facility may petition the commission to lower the tax rate applicable to its slot machines to  no  lower  than  thirty percent  no  more  than  once  annually  after the effective date of the chapter of the laws  of  two  thousand  twenty-one  which  amended  this subdivision.  A  licensed  gaming facility may request a revision to its plan in its initial report due to unforeseen circumstances.   * NB Effective until April 19, 2026   * 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 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, thirty-seven percent of gross gaming revenue  from slot  machines  and  ten  percent of gross gaming revenue from all other sources.   * NB Effective April 19, 2026   2. Permissible deductions. (a) A gaming facility may deduct from gross gaming revenue the amount of approved promotional gaming credits  issued to  and  wagered  by  patrons  of  such  gaming  facility. The amount of approved promotional credits shall be calculated as follows:  (1) for the period commencing on April first,  two  thousand  eighteen and  ending on March thirty-first, two thousand twenty-one, an aggregate  maximum amount equal to nineteen  percent  of  the  base  taxable  gross gaming revenue amount during the specified period;  (2)  for the period commencing on April first, two thousand twenty-one and ending on March thirty-first, two thousand twenty-three,  a  maximum amount  equal  to  nineteen  percent  of  the  base taxable gross gaming revenue amount for each fiscal year during the specified period; and  (3)  for  the  period  commencing  on  April   first,   two   thousand twenty-three  and  thereafter, a maximum amount equal to fifteen percent of the base taxable gross gaming revenue amount  for  each  fiscal  year during the specified period.  (b)  For  purposes of paragraph (a) of this subdivision, "base taxable gross gaming revenue amount" means that portion of gross gaming  revenue not attributable to deductible promotional credit.  (c) Any tax due on promotional credits deducted during the fiscal year in  excess  of  the allowable deduction shall be paid within thirty days from the end of the fiscal year.  (d) Only promotional credits that are issued  pursuant  to  a  written plan  approved  by the commission as designed to increase revenue at the facility  may  be  eligible  for  such  deduction.  The  commission,  in conjunction with the director of the budget, may suspend approval of any plan  whenever  they  jointly  determine that the use of the promotional credits under such plan is not effective in  increasing  the  amount  of revenue earned.