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S3289Senate2019-2020 Session

Set Vendor Track Fee Rates

Official title

“Relates to vendor fees paid to certain vendor tracks”

Sponsor Michael H. RanzenhoferSD-61+4 co-sponsorsAffects Economy
Status
In Senate Committee
Racing, Gaming And Wagering
Impact
3/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Racing, Gaming And Wagering

What's happening

This bill increases the vendor fee rate to 37% of post-payout gaming revenue for certain tracks in Genesee County near Native American casinos.

Why it matters

  1. Targets specific competition. The bill addresses vendor tracks in Genesee County that are within 40 miles of a Native American class III gaming facility, meaning it’s aimed at tracks facing direct competition from tribal casinos—this could significantly impact how these tracks compete for customers and revenue.

  2. Financial impact on tracks. By setting the vendor fee rate at 37% of post-payout gaming revenue, the law could increase the amount of money these tracks retain compared to previous rates. This may help the tracks’ financial viability and could influence local jobs and economic activity tied to those venues.

  3. Potential effect on state and local revenue. Adjusting the vendor fee rate can shift the balance of gaming revenue going to the state versus what stays with the tracks, possibly affecting public funding streams tied to gaming revenue, as well as the overall tax structure for the region.

  4. Sets precedent for regional gaming laws. Creating a distinct rule for tracks near Native American casinos could set an example for other regions facing similar competition, opening the door for further legislative changes elsewhere in New York or in other states.

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Who cares

  • Qualifying vendor tracks in Genesee County

    The bill would set their vendor fee at 37% of revenue wagered after prize payouts if they are within 40 miles of a Native American class III gaming facility.

  • Native American class III gaming facilities

    Their proximity would determine whether a Genesee County vendor track qualifies for the 37% rate.

  • State lottery revenue administrators

    The bill would require them to apply the qualifying tracks’ vendor fee rate beginning April 1, 2020.

Headline styles

Set Vendor Track Fee Rates

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Michael H. Ranzenhofer

Senator · Senate District 61

History

  1. Referred to racing, gaming and wagering
  2. Referred to racing, gaming and wagering

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3289

2019-2020 Regular Sessions

IN SENATE

February 5, 2019

Introduced by Sens. RANZENHOFER, HELMING, ORTT, RITCHIE, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wagering

AN ACT to amend the tax law, in relation to vendor fees paid to certain vendor tracks

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law is amended by adding a new clause (D-1) to read as follows:

(D-1) notwithstanding any provision of law to the contrary, when the vendor track is located in the county of Genesee and within forty miles of a Native American class III gaming facility, at a rate of thirty-seven percent of the total revenue wagered at the vendor track after payout for prizes pursuant to this chapter;

§ 2. This act shall take effect April 1, 2020.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01798-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the tax law, in relation to vendor fees paid to certain vendor tracks

Purpose or general idea of bill

This bill would increase vendor fees to the vendor track located in Genesee County to provide closer parity with other vendor tracks across the state.

Summary of provisions

Section 1 amends subparagraph (ii) of paragraph one of subdivision b of section 1612 of the Tax Law to add a new clause (D-1).

Section 2 provides the effective date.

Difference between original and amended version (if applicable)

The amended version changes the rate from forty-one percent to thirty- seven percent.

Justification

The Western New York Racino in Batavia, Genesee County, has the highest effective taxes of any of the racinos located in close competition to Native American and other casinos across New York State. Western New York OTB, as a corporation owned by fifteen Western New York counties, provides vital funding to the residents of these counties, and the current unfair rate deprives these counties and their residents of this important funding year after year. The current burden also challenges the ability of WNYOTB to sustain its workforce, maintain and grow programs that are important to the economic well-being of the region, both directly and indirectly, and support the local governments that rely on this revenue stream. This bill will simply bring parity with other similar gaming venues.

Prior legislative history

2018 - S.7397-A/A.10073-A - PS/Ways & Means

Fiscal implications for state and local governments

To be determined.

Effective date

This act shall take effect on April 1, 2020.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.