N.Y. Comp. Codes R. & Regs. tit. 9 § 4003.12

Current through Register Vol. 46, No. 25, June 18, 2024

Section 4003.12 - Certification of annual expenditures for enhancements

(a) Pursuant to subdivision one of section 236 of the Racing, Pari-Mutuel Wagering and Breeding Law, the commission shall certify to the Commissioner of Taxation and Finance no later than 80 days after the close of each calendar year the name of each racing association or corporation, other than a nonprofit racing association, that has failed during the immediately preceding calendar year to expend an amount equal to at least one-half of one percent of such association or corporation's on-track bets during the immediately preceding calendar year for enhancements consisting of capital improvements as defined in section 237 of such law (and section 4003.11 of this Part), repairs to the physical plant, structures and equipment used in racing or wagering operations and costs connected with up to five special events approved by the commission as defined in section 236.

(b) In this connection, each racing association, other than a nonprofit racing association shall by January 31st of the current year file with the commission schedules of expenditures made during the preceding calendar year segregated by expenditures for capital improvements, eligible repairs and special events. Such schedules shall be in summary form identifying each asset or special event by appropriate name, the total expended for each asset or special event, and the date of completion for use for such asset or the date each special event was held. Copies of bills, invoices and other supporting documentation providing details of such expenditures shall be retained by the track for audit by the commission.

(c) To qualify as eligible repairs, expenditures must be for work or materials necessary to put inoperative assets back into good operating condition; in addition, the replacement of parts, the fixing of plant, overhaul of equipment, and similar work that ordinarily would not qualify as capital expenditures because the life of the asset is not thereby extended shall nevertheless qualify as eligible repairs. Maintenance expenditures, incurred for the purpose of keeping assets in operating condition are excluded.

(d) In determining whether the necessary amounts have been expended, the commission shall consider the preceding calendar year or the average of the two preceding calendar years, whichever is higher. It shall be presumed that only expenditures submitted in the form required in subdivision (b) of this section are expenditures qualified for consideration by the commission.

(e) If the commission determines that such racing association or corporation has failed to make the total of expenditures as established by statue, the commission shall notify the affected association or corporation of the commission's determination by February 20th of the current year and schedule a date within 15 days thereof to hear the association or corporation in regard to the commission's determination.

(f) Copies of any certification made in accordance with subdivision (a) of this section shall be served upon the affected association or corporation by the date prescribed in such subdivision (a).

N.Y. Comp. Codes R. & Regs. Tit. 9 § 4003.12