2023 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;  provided  however,  that in the Tioga county portion of region
five, for the period of  fiscal  years  two  thousand  twenty-four,  two
thousand  twenty-five, and two thousand twenty-six, during which both of
the following criteria are met (i) any facility's tax rate  is  adjusted
by  the  commission  pursuant  to paragraph (b) of this subdivision, and
(ii) a vendor track that is located within Oneida county, within fifteen
miles of a Native American class III gaming facility maintains at  least
seventy  percent  of  full-time equivalent employees as they employed in
the year two thousand sixteen, the tax rate on facilities located in the
Tioga county portion of region five shall be  thirty  percent  of  gross
gaming  revenue  from  slot  machines,  and  ten percent of gross gaming
revenue from all other sources. Any money realized from the decrease  in
their  slot machine tax rate shall only be used by the facility to offer
childcare for employees, food and beverage conversion, any other project
or use that improves the economic infrastructure of the facility, or for
rehiring laid-off workers,  hiring  new  workers  or  retaining  current
workers at the facility. The 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 receiving the reduction in its
slot machine tax rate will rebuild their economic infrastructure through
the offering of childcare for employees, food and  beverage  conversion,
or any other project or use that improves the economic infrastructure of
the  facility,  or for rehiring laid-off workers, hiring new workers, or
retaining current workers at the facility or the creation of  new  jobs.
Such  plan  shall also clearly establish quarterly and annual employment
goals of increasing full-time employees. The facility shall  be  subject
to  the  conditions  set  forth  in clause (ii) of subparagraph three of
paragraph (b) of this subdivision. Such initial report and  accompanying
plan  shall  be  due  ninety days after such reduction goes into effect.
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, 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 in each year  such  tax  rate  has  been
granted.
(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 or subparagraph three
of paragraph (a) of this subdivision, 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
1-a.  For  a  gaming facility licensed pursuant to title two-A of this
article, there is hereby imposed a tax on gross gaming revenues with the
rates  to  be  determined  by  the  gaming  commission  pursuant  to   a
competitive  bidding process as outlined in title two-A of this article;
provided however that the tax rate on gross  gaming  revenue  from  slot
machines  shall  be no less than twenty-five percent and the tax rate on
gross gaming revenue from all other sources shall be no  less  than  ten
percent.
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.