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Ranzenhofer announces proposal to lower tax rate for Batavia Downs

By Billie Owens
Press release:
 
New York State Senator Michael H. Ranzenhofer (R-C-I, Amherst) announced today that the Executive Budget proposes a lower tax rate for Batavia Downs. The proposal would provide $1.4 million in tax relief.
 
“The Executive Budget Proposal (EBP) is a first step to leveling the tax playing field for Batavia Downs," Ranzenhofer said. "Lowering the tax rate will make the local facility more competitive and ensure a fairer share of dollars are returned to taxpayers through our local governments.
 
"I will continue to advocate for establishing tax parity between Batavia Downs and other gaming facilities across the state."
 
The Executive Budget also eliminates mandated spending levels of 10 percent for marketing expenses and 4 percent for capital improvements. Under existing state law, the oldest nighttime harness track in the country pays one of the highest effective tax rates among gaming centers in the region.
 
In January, Senator Ranzenhofer introduced legislation (S7397) in the State Senate that would lower Batavia Down’s taxes paid to New York State by increasing the facility’s portion of net winnings from 35 percent to 41 percent. If enacted, the act would take effect on April 1, 2019.
 
Gaming Operation
  • Batavia Downs  -- FY 2017-18: Portion of Net Winnings (percent) = 35

                                         EBP: Portion of Net Winnings (percent) = 37

  • Vernon Downs -- FY 2017-18: Portion of Net Winnings (percent) = 41

                                       EBP: Portion of New Winnings (percent) = 42

  • Hamburg Gaming -- FY 2017-18: Portion of Net Winnings (percent) = 41

                                            EBP: Portion of Net Winnings (percent) = 42

About Batavia Downs

Batavia Downs Gaming, operated by WROTB, is a standard bred racetrack and gaming facility. WROTB is a public benefit corporation – owned by 15 Western New York counties, including Cattaraugus, Cayuga, Chautauqua, Erie, Genesee, Livingston, Monroe, Niagara, Orleans, Oswego, Schuyler, Seneca, Steuben, Wayne, and Wyoming, as well as the cities of Rochester and Buffalo. Since its inception, WROTB has generated hundreds of millions of dollars in operating and surcharge revenues to the residents of those participating municipalities.

Assembly candidate says NY should scrap property and sales taxes

By Billie Owens

Here's a news release sent in today from Democrat Chris Barons, a candidate for state Assembly in the 39th District.

The cost of local government and schools is the fastest growing taxpayer burden. That burden is magnified by basing local taxes on real property value. Property tax is unfair and punitive. It establishes a recurring, non-transactional fee on ownership.

Taxes should be a measure of prosperity. Property ownership is an investment not a benchmark of prosperity. Only 54.4 percent of New Yorkers own homes. Property taxes contribute to neighborhood blight when property owners opt against upkeep to avoid increasing taxable value.

In our fragile economic climate, with as many as 17.5 percent unemployed, millions laid-off, and New York leading the nation in first-time unemployment claims, local governments cannot ignore the fact: property taxes do not adjust for fixed or reduced incomes.

My solution to New York’s tax burden is to scrap property taxes AND sales tax. Replace both with a 4 percent residential flat tax and 3.8 percent Value Added Tax (VAT) for business.

With a state GSP of $1,144,481,000,000 and personal income at $828,443,000,000, the net result would be over $74 billion in tax revenue.

With renters direct-paying local taxes, rent bills that include the cost of property tax must be adjusted. To encourage landlords to reduce rent bills, a Rent Adjustment Credit for landlords who lower rent in lieu of property tax will be built into Form IT-214, Claim for Real Property Tax Credit for Homeowners and Renters.

Value Added Tax is misunderstood by many. Essentially it taxes profits on products or services.

Example: a sump pump company buys castings at $5 apiece, tools and assembles them as a sump pump at a cost of $15. The finished pump is sold to a retailer for $40. The value added is $20, which is taxable. The retailer sells the pump to a customer for $80. The value added is $40, which is taxable.

In the case of service providers, the cost of sending a cleaner to a business for eight hours is $60. The cleaning company charges the business $75. The value added is $15, which is taxable.

For financial institutions, the banks pay a VAT on disposal of mortgaged securities, investment and financial services.

The elimination of property-based taxation would especially benefit farmers -- for whom land ownership is a critical investment.

Besides alleviating the unfair burden placed upon taxpayers, eliminating property taxes would jettison the bureaucracy necessary to administer it. A 4 percent residential tax and 3.8 percent commercial VAT would also generate sufficient revenue to accelerate satisfaction of New York State’s overwhelming debt.

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