N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 236

§ 236. Disposition of pari-mutuel pools; percentage payable to state\nas a tax; authority of counties or certain cities to impose a tax. 1.\nEvery corporation authorized under this chapter to conduct pari-mutuel\nbetting at a race meeting on races run thereat, except as provided in\nsection two hundred thirty-eight of this article with respect to the\nfranchised corporation, shall distribute all sums deposited in any\npari-mutuel pool to the holders of winning tickets therein, providing\nsuch tickets be presented for payment before April first of the year\nfollowing the year of their purchase, less an amount that shall be\nestablished and retained by such racing corporation of between fourteen\nto twenty percent of the total deposits in pools resulting from regular\non-track bets and less sixteen to twenty-two percent of the total\ndeposits in pools resulting from multiple on-track bets and less twenty\nto thirty percent of the total deposits in pools resulting from exotic\non-track bets and less twenty to thirty-six percent of the total pools\nresulting from super exotic on-track bets. The retention rate to be\nestablished is subject to the prior approval of the commission. Such\nrate may not be changed more than once per calendar quarter to be\neffective on the first day of the calendar quarter. "Exotic bets" and\n"multiple bets" shall have the meanings set forth in section five\nhundred nineteen of this chapter. "Super exotic bets" shall have the\nmeaning set forth in section three hundred one of this chapter. Of the\namount so retained there shall be paid by such corporation to the\ndepartment of taxation and finance as a reasonable tax by the state for\nthe privilege of conducting pari-mutuel betting on the races run at the\nrace meeting held by such corporation, which tax is hereby levied, in\nthe applicable percentage set forth in subdivision one of section one\nhundred thirty-six of this chapter. Any such racing corporation shall,\nfor any twelve-month period beginning on April first in nineteen hundred\nninety and any year thereafter, expend an amount equal to at least\none-half of one percent of its on-track bets during the immediately\npreceding calendar year for enhancements consisting of capital\nimprovements as defined by section two hundred thirty-seven of this\narticle, repairs to its physical plant, structures, and equipment used\nin its racing or wagering operations and five special events at each\ntrack in each calendar year, not otherwise conducted in the ordinary\ncourse of business, the purpose of which shall be to encourage, attract\nand promote track attendance and encourage new and continued patronage,\nwhich events shall be subject to the prior approval of the commission\nfor purposes of this subdivision. In the determination of the amounts\nexpended for such enhancements, the commission may consider the\nimmediately preceding twelve-month calendar period or the average of the\ntwo immediately preceding twelve-month calendar periods. Provided\nfurther, however, that of the portion of the increased amounts retained\nby such corporation above those amounts retained in nineteen hundred\neighty-four, an amount of such increase shall be distributed to purses\nin the same proportion as commissions and purses were distributed during\nnineteen hundred eighty-four as certified by the commission.\n Such corporation shall pay to the New York state thoroughbred breeding\nand development fund one-half of one percent of the total daily on-track\npari-mutuel pools from regular, multiple and exotic bets, and three\npercent of super exotic bets.\n Such corporation shall distribute to purses an amount equal to fifty\npercent of any compensation it receives from simulcasting or from\nwagering conducted outside the United States. Such corporation shall pay\nto the commission as a regulatory fee, which fee is hereby levied,\nsix-tenths of one percent of the total daily on-track pari-mutuel pools\nof such corporation.\n 2. The balance of the retained percentage of such pool shall be held\nby such corporation for its own use and purposes, except that in\naddition to any payments to purses provided for in subdivision one of\nthis section, an amount equal to two and one-half percent of the total\npools resulting from on-track regular bets and exotic bets and an amount\nequal to three and one-half percent of the total pools resulting from\non-track multiple bets and an amount equal to twelve percent of on-track\nsuper exotic bets shall be used exclusively for the purpose of\nincreasing purses (including stakes, premiums and prizes) awarded to\nhorses in races conducted by such corporation. Such two and one-half\npercent and three and one-half percent shall be in addition to (i) four\nand one-half percent of such total pools resulting from regular and\nmultiple wagers and five and one-half percent of such total pools\nresulting from exotic wagers, or (ii) the percentage of such total pools\nused for purses (including stakes, premiums and prizes) during the year\nnineteen hundred eighty-two, whichever is larger. Such percentage of the\ntotal pools mentioned in this subdivision shall be used for purses\n(including stakes, premiums and prizes) in races hereafter conducted by\nsuch corporation, and any portion not so used during any year shall be\nso used during the following year. The commission shall report annually,\non or before July first, to the director of the budget, the chair of the\nsenate finance committee and the chair of the assembly ways and means\ncommittee the extent to which such corporation used and retained\npercentages for operations, maintenance, capital improvements,\nadvertising and promotion, administration and general overhead and\nevaluate the effectiveness and make recommendations with respect to the\napplication of the rates of taxation. Such report shall also specify the\namount of such retained percentages used for investments not directly\nrelated to racing activities and such amounts used to declare dividends\nor other profit distributions, additions to capital stock, its sale and\ntransfer and additions to retained earnings. Such reports shall also\ninclude an analysis of any such agreements or proposals to conduct or\notherwise expand wagers authorized under article ten of this chapter and\npresent its conclusions with respect to the conduct of such wagering,\nthe nature of such proposals and agreements, and recommendations to\nensure the future maintenance of the intent of this article.\n 3. Maintenance of pari-mutuel racing activity. For any calendar year\ncommencing on or after January first, nineteen hundred eighty-nine, a\nracing corporation in zone two shall not conduct fewer pari-mutuel\nprograms and pari-mutuel races at its facilities than ninety percent of\nthe programs and races so conducted during nineteen hundred eighty-five\nor during nineteen hundred eighty-six, whichever is less, unless such\ncorporation demonstrates to the satisfaction of the commission good\ncause due to factors beyond the control of such corporation or because\nthe commission finds that it would be uneconomical or impractical for\nsuch corporation to be assigned or conduct the prescribed number.\n 4. The payment of the state tax imposed by this section shall be made\nto the commissioner of taxation and finance on the last business day of\neach month and shall cover taxes due for the period from the sixteenth\nday of the preceding month through the fifteenth day of the current\nmonth provided, however, that such payments required to be made on March\nthirty-first shall include all taxes due and accruing through the last\nfull week of racing in March of the current year or as otherwise\ndetermined by the commissioner of taxation and finance, and shall be\naccompanied by a report under oath, showing the total of all such\ncontributions, together with such other information as the commissioner\nof taxation and finance may require. A penalty of five percent and\ninterest at the rate of one percent per month from the date the report\nis required to be filed to the date of payment of the tax shall be\npayable in case any tax imposed by this section is not paid when due. If\nthe commissioner of taxation and finance determines that any moneys\nreceived under this subdivision were paid in error, the commissioner of\ntaxation and finance may cause the same to be refunded without interest\nout of any moneys collected thereunder, provided an application therefor\nis filed with the commissioner of taxation and finance within one year\nfrom the time the erroneous payment was made. Such taxes, interest and\npenalties when collected, after the deduction of refunds of taxes\nerroneously paid, shall be paid by the commissioner of taxation and\nfinance into the general fund of the state treasury.\n 5. No county, city, town, village or other political subdivision of\nthe state may impose, levy or collect a tax on admission fees or tickets\nof admission, on wagers made by patrons, in the form of purchases of\npari-mutuel tickets or upon such tickets, on pari-mutuel pools, on\nbreaks, on dividends or payments made to winning bettors, or on that\npart of the pari-mutuel pools to be retained by racing corporations\nunder this section, except as otherwise provided in this chapter.\n