§ 1352 — Commercial gaming revenue fund

New York § 1352

• Jurisdiction: New York
• Law PML: Racing, Pari-Mutuel Wagering and Breeding Law
• Title 6: Taxation and Fees
• Art. 13: Destination Resort Gaming

Text

§ 1352. Commercial gaming revenue fund. 1. (a) The commission shall\npay into an account, to be known as the commercial gaming revenue fund\nas established pursuant to section ninety-seven-nnnn of the state\nfinance law, under the joint custody of the comptroller and the\ncommissioner of taxation and finance, all taxes and fees imposed by this\narticle paid by a gaming facility licensed under title two of this\narticle or title two-A of this article located within zone two; any\ninterest and penalties imposed by the commission relating to those\ntaxes; the appropriate percentage of the value of expired gaming related\nobligations; all penalties levied and collected by the commission; and\nthe appropriate funds, cash or prizes forfeited from gambling activity.\n (b) For any gaming facility that does not qualify under subdivision\ntwo of section thirteen hundred twenty-one-a of this article, is\nlicensed under title two-A of this article, and is located within New\nYork City, revenues shall be distributed in the following manner:\n (i) fifty percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those taxes\nshall be deposited to a sole custody fund established under the gaming\ncommission, and paid monthly, without appropriation, directly to the\nmetropolitan transportation authority commercial gaming revenue fund\nestablished under section one thousand two hundred seventy-j of the\npublic authorities law; and\n (ii) fifty percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those taxes\nshall be deposited into the commercial gaming revenue fund established\nunder section ninety-seven-nnnn of the state finance law by the\ncommission and shall be appropriated or transferred only for elementary\nand secondary education or real property tax relief.\n (c) For any gaming facility that does not qualify under subdivision\ntwo of section thirteen hundred twenty-one-a of this article, is\nlicensed under title two-A of this article, and located within zone one\nbut not located within New York City, revenues shall be distributed in\nthe following manner:\n (i) forty percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those taxes\nshall be deposited to a sole custody fund established under the gaming\ncommission, and paid monthly, without appropriation, directly to the\nmetropolitan transportation authority commercial gaming revenue fund\nestablished under section one thousand two hundred seventy-j of the\npublic authorities law;\n (ii) forty percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those taxes\nshall be deposited into the commercial gaming revenue fund established\nunder section ninety-seven-nnnn of the state finance law by the\ncommission and shall be appropriated or transferred only for elementary\nand secondary education or real property tax relief from the commercial\ngaming revenue fund;\n (iii) five percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those\ntaxes, shall be deposited into the commercial gaming revenue fund\nestablished under section ninety-seven-nnnn of the state finance law by\nthe commission and shall be allocated to the host county for the purpose\nof real property tax relief or for education assistance;\n (iv) ten percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those taxes\nshall be deposited into the commercial gaming revenue fund established\nunder section ninety-seven-nnnn of the state finance law by the\ncommission and shall be allocated to the host municipality for the\npurpose of real property tax relief or education assistance; and\n (v) five percent of the taxes imposed by this article, and any\ninterest and penalties imposed by the commission relating to those\ntaxes, shall be deposited into the commercial gaming revenue fund\nestablished under section ninety-seven-nnnn of the state finance law by\nthe commission and shall be allocated among counties within the region,\nas defined by section one thousand three hundred ten of this article,\nfor the purpose of real property tax relief or education assistance.\nSuch distribution from the commercial gaming revenue fund established\nunder section ninety-seven-nnnn of the state finance law shall be made\namong the counties on a per capita basis, subtracting the population of\nhost municipality and county.\n (d) For any gaming facility that qualifies under subdivision two of\nsection thirteen hundred twenty-one-a of this article, is licensed under\ntitle two-A of this article, and is located within zone one but not\nlocated within New York City, revenues shall be distributed in the\nfollowing manner:\n (i) Eighty percent of all deposits in a state fiscal year resulting\nfrom taxes imposed by this article, and any interest and penalties\nimposed by the commission relating to those taxes shall be directed to\nthe commercial gaming revenue fund until the total of such deposits for\nthe state fiscal year is equal to the education aid hold harmless\namount. The education aid hold harmless amount shall be equal to the\ngreater of (A) the revenue received from the facility for education aid\ndeposits into the state lottery fund as a video lottery gaming licensee\npursuant to section sixteen hundred seventeen-a of the tax law for the\ntwelve months immediately preceding the date on which such facility\nbegan operations as a commercial casino pursuant to title two-A of this\narticle, or (B) the revenue received from the facility for education aid\ndeposits into the state lottery fund as a video lottery gaming licensee\npursuant to section sixteen hundred seventeen-a of the tax law for state\nfiscal year two thousand twenty-two. For the first fiscal year of gaming\nfacility operations, the hold harmless amount shall reflect a pro-rata\namount based on the opening date of the gaming facility. Notwithstanding\nsection ninety-seven-nnnn of the state finance law, such deposits into\nthe commercial gaming revenue fund shall be available exclusively for\nelementary and secondary education. Should these deposits resulting from\ntaxes imposed pursuant to subdivision one-a of section thirteen hundred\nfifty-one of this article on the operations of a qualifying gaming\nfacility at the conclusion of a given state fiscal year be less than the\ntotal required under this paragraph, such gaming facility shall remit\nthe necessary payment accounting for the difference to the commission\nfor deposit into the commercial gaming revenue fund no later than the\nnext occurring May first.\n (ii) Twenty percent of all deposits in a state fiscal year resulting\nfrom taxes imposed by this article, and any interest and penalties\nimposed by the commission relating to those taxes, shall be distributed\nin the same manner as subparagraphs (iii), (iv), and (v) of paragraph\n(c) of this subdivision.\n (iii) Once the deposits from a qualifying gaming facility as\nprescribed in subparagraph (i) of this paragraph exceed the education\naid hold harmless amount as determined in subparagraph (i) of this\nparagraph in a given state fiscal year, eighty percent of all subsequent\ndeposits in such state fiscal year from taxes imposed by this article,\nand any interest and penalties imposed by the commission relating to\nthose taxes shall be deposited to a sole custody fund established under\nthe gaming commission, and paid monthly, without appropriation, directly\nto the metropolitan transportation authority commercial gaming revenue\nfund established under section one thousand two hundred seventy-j of the\npublic authorities law and the remaining twenty percent shall continue\nto be distributed in the same manner as subparagraphs (iii), (iv), and\n(v) of paragraph (c) of this subdivision; provided however, that once\nthe dollar amount paid directly to the metropolitan transportation\nauthority commercial gaming revenue fund established under section one\nthousand two hundred seventy-j of the public authorities law matches the\nsame dollar amount paid pursuant to the education aid hold harmless\namount as determined in subparagraph (i) of this paragraph in a given\nstate fiscal year, twenty percent of any excess dollar amounts shall be\ndistributed in the same manner as subparagraphs (iii), (iv), and (v) of\nparagraph (c) of this subdivision, forty percent of any excess dollar\namounts shall be deposited to a sole custody fund established under the\ngaming commission, and paid monthly, without appropriation, directly to\nthe metropolitan transportation authority commercial gaming revenue fund\nestablished under section one thousand two hundred seventy-j of the\npublic authorities law, and forty percent of any excess dollar amounts\nshall be deposited by the commission into the commercial gaming revenue\nfund established under section ninety-seven-nnnn of the state finance\nlaw for the sole purposes of education aid.\n (e) For any gaming facility that qualifies under subdivision two of\nsection thirteen hundred twenty-one-a of this article, is licensed under\ntitle two-A of this article, and is located within New York City,\nrevenues shall be distributed in the following manner:\n (i) Eighty percent of all deposits in a state fiscal year resulting\nfrom taxes imposed by this article, and any interest and penalties\nimposed by the commission relating to those taxes, shall be deposited in\nthe same manner as in subparagraph (i) of paragraph (d) of this\nsubdivision. For the first fiscal year of gaming facility operations,\nthe hold harmless amount shall reflect a pro-rata amount based on the\nopening date of the gaming facility.\n (ii) Twenty percent of all deposits in a state fiscal year resulting\nfrom taxes imposed by this article, and any interest and penalties\nimposed by the commission relating to those taxes, shall be deposited to\na sole custody fund established under the gaming commission, and paid\nmonthly, without appropriation, directly to the metropolitan\ntransportation authority commercial gaming revenue fund established\nunder section one thousand two hundred seventy-j of the public\nauthorities law until the applicable education aid hold harmless amount\nas prescribed in subparagraph (i) of paragraph (d) of this subdivision\nhas been met.\n (iii) Once the deposits from a qualifying gaming facility as\nprescribed in subparagraph (i) of this paragraph exceed the education\naid hold harmless amount as determined in subparagraph (i) of paragraph\n(d) of this subdivision in a given state fiscal year, all subsequent\ndeposits in such state fiscal year from taxes imposed by this article,\nand any interest and penalties imposed by the commission relating to\nthose taxes, shall be deposited to a sole custody fund established under\nthe gaming commission, and paid monthly, without appropriation, directly\nto the metropolitan transportation authority commercial gaming revenue\nfund established under section one thousand two hundred seventy-j of the\npublic authorities law; provided however, that once the dollar amount\npaid directly to the metropolitan transportation authority commercial\ngaming revenue fund established under section one thousand two hundred\nseventy-j of the public authorities law matches the same dollar amount\npaid pursuant to the education aid hold harmless amount as determined in\nsubparagraph (i) of paragraph (d) of this subdivision in a given state\nfiscal year, fifty percent of any excess dollar amounts shall be\ndeposited to a sole custody fund established under the gaming\ncommission, and paid monthly, without appropriation, directly to the\nmetropolitan transportation authority commercial gaming revenue fund\nestablished under section one thousand two hundred seventy-j of the\npublic authorities law, and fifty percent of any excess dollar amounts\nshall be deposited by the commission into the commercial gaming revenue\nfund established under section ninety-seven-nnnn of the state finance\nlaw for the sole purposes of education aid.\n (f) For a municipality that was appropriated video lottery terminal\naid in the year two thousand twenty-three pursuant to section\nfifty-four-l of the state finance law, the gaming facility licensed\nunder title two-A of this article that was previously authorized to\noperate video lottery gaming pursuant to section one thousand six\nhundred seventeen-a of the tax law must hold the municipality harmless\nso that the host municipality does not receive less money in any state\nfiscal year under the provisions of subparagraph (ii) of paragraph (d)\nof this subdivision than such host municipality received in annual video\nlottery terminal aid in the year two thousand twenty-three. The\nprovisions of this paragraph shall apply as of the first full state\nfiscal year in which video lottery terminal aid is not received by the\nmunicipality and gaming facility operations have commenced.\n 2. The commission shall require at least monthly deposits by the\nlicensee of any payments pursuant to section one thousand three hundred\nfifty-one of this article, at such times, under such conditions, and in\nsuch depositories as shall be prescribed by the state comptroller. The\ndeposits shall be deposited to the credit of the commercial gaming\nrevenue fund as established by section ninety-seven-nnnn of the state\nfinance law or to the metropolitan transportation authority commercial\ngaming revenue fund established under section one thousand two hundred\nseventy-j of the public authorities law, according to the requirements\nof subdivision one of this section. The commission may require a monthly\nreport and reconciliation statement to be filed with it on or before the\ntenth day of each month, with respect to gross revenues and deposits\nreceived and made, respectively, during the preceding month.\n