What's happening
This bill changes the calculation of franchise fees for racing corporations by increasing the operating expense deduction period from 45 to 365 days.
Why it matters
Expanding the deduction period from 45 to 365 days means racing corporations can subtract a full year’s worth of operating expenses, rather than just 45 days' worth, before calculating their franchise fee. This could significantly reduce the amount they owe the state.
The change may improve the financial stability of racing corporations. by allowing them to retain more of their revenue, possibly enabling greater investment in racing operations, jobs, or facility upgrades.
This adjustment could reduce state revenues from franchise fees paid by racing corporations,. potentially affecting public funding or programs that rely on this income.
By aligning operating expense calculations with the full fiscal year, the bill may create a more predictable and fair basis for franchise fee assessments,. but it also shifts more financial benefit to the corporations rather than the state.
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Change Franchise Fee Formula
Plain English, a few words. Used as the page title.
Sponsors
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History
- Enacting clause stricken
- Referred to racing and wagering
- Referred to racing and wagering
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Change Franchise Fee Formula
In Senate Committee · Rules · Sponsor John J. Bonacic
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8732
2017-2018 Regular Sessions
IN ASSEMBLY
October 20, 2017
Introduced by M. of A. WOERNER -- read once and referred to the Committee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to calculating franchise fees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 208 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 140 of the laws of 2008, is amended to read as follows:
1. In consideration of the franchise and in accordance with its franchise agreement, the franchised corporation shall remit to the state, each year, no later than April fifth, a franchise fee payment. The franchise fee shall be calculated and equal to the lesser of paragraph (a) or (b) of this subdivision as follows: (a) adjusted net income, including all sources of audited generally accepted accounting principles net income as of December thirty-first (i) plus the amount of depreciation and amortization for such year as set forth on the statement of cash flows (ii) less the amount received by the franchised corporation for capital expenditures and (iii) less principal payments made for the repayment of debt; or (b) operating cash which is defined as cash available on December thirty-first (i) which excludes all restricted cash accounts, segregated accounts as per audited financial statements and cash on hand needed to fund the on-track pari-mutuel operations through the vault, (ii) less [forty-five] three hundred sixty-five days of operating expenses pursuant to generally accepted accounting principles which shall be an average calculated by dividing the current year's annual budget by the number of days in such year and multiplying that number by [forty-five] three hundred sixty-five.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13581-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.