N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 238

§ 238. Disposition of pari-mutuel pools of the franchised corporation;\npercentage payable to state as a tax; authority of counties or certain\ncities to impose a tax. 1. (a) The franchised corporation authorized\nunder this chapter to conduct pari-mutuel betting at a race meeting or\nraces run thereat shall distribute all sums deposited in any pari-mutuel\npool to the holders of winning tickets therein, provided such tickets be\npresented for payment before April first of the year following the year\nof their purchase, less an amount which shall be established and\nretained by such franchised corporation of between twelve to seventeen\nper centum of the total deposits in pools resulting from on-track\nregular bets, and fourteen to twenty-one per centum of the total\ndeposits in pools resulting from on-track multiple bets and fifteen to\ntwenty-five per centum of the total deposits in pools resulting from\non-track exotic bets and fifteen to thirty-six per centum of the total\ndeposits in pools resulting from on-track super exotic bets, plus the\nbreaks. The retention rate to be established is subject to the prior\napproval of the gaming commission. Such rate may not be changed more\nthan once per calendar quarter to be effective on the first day of the\ncalendar quarter. "Exotic bets" and "multiple bets" shall have the\nmeanings set forth in section five hundred nineteen of this chapter.\n"Super exotic bets" shall have the meaning set forth in section three\nhundred one of this chapter. For purposes of this section, a "pick six\nbet" shall mean a single bet or wager on the outcomes of six races. The\nbreaks are hereby defined as the odd cents over any multiple of five for\npayoffs greater than one dollar five cents but less than five dollars,\nover any multiple of ten for payoffs greater than five dollars but less\nthan twenty-five dollars, over any multiple of twenty-five for payoffs\ngreater than twenty-five dollars but less than two hundred fifty\ndollars, or over any multiple of fifty for payoffs over two hundred\nfifty dollars. Out of the amount so retained there shall be paid by such\nfranchised corporation to the commissioner of taxation and finance, as a\nreasonable tax by the state for the privilege of conducting pari-mutuel\nbetting on the races run at the race meetings held by such franchised\ncorporation, the following percentages of the total pool for regular and\nmultiple bets five per centum of regular bets and four per centum of\nmultiple bets plus twenty per centum of the breaks; for exotic wagers\nseven and one-half per centum plus twenty per centum of the breaks, and\nfor super exotic bets seven and one-half per centum plus fifty per\ncentum of the breaks. For the period June first, nineteen hundred\nninety-five through September ninth, nineteen hundred ninety-nine, such\ntax on regular wagers shall be three per centum and such tax on multiple\nwagers shall be two and one-half per centum, plus twenty per centum of\nthe breaks. For the period September tenth, nineteen hundred ninety-nine\nthrough March thirty-first, two thousand one, such tax on all wagers\nshall be two and six-tenths per centum and for the period April first,\ntwo thousand one through December thirty-first, two thousand sixteen,\nsuch tax on all wagers shall be one and six-tenths per centum, plus, in\neach such period, twenty per centum of the breaks. Payment to the New\nYork state thoroughbred breeding and development fund by such franchised\ncorporation shall be one-half of one per centum of total daily on-track\npari-mutuel pools resulting from regular, multiple and exotic bets and\nthree per centum of super exotic bets provided, however, that for the\nperiod September tenth, nineteen hundred ninety-nine through March\nthirty-first, two thousand one, such payment shall be six-tenths of one\nper centum of regular, multiple and exotic pools and for the period\nApril first, two thousand one through December thirty-first, two\nthousand sixteen, such payment shall be seven-tenths of one per centum\nof such pools.\n (b) An amount equal to fifty per centum of any compensation received\nby a franchised corporation from simulcasting or from wagering conducted\noutside the United States or outside New York state and within the\nUnited States shall be distributed to purses, except with respect to\nsuch compensation received from Connecticut which shall be computed as a\npercentage of wagering handle in a manner approved by the state racing\nand wagering board.\n (c) An amount equal to fifty per centum of any compensation received\nby the franchised corporation from simulcasting or from wagering\nconducted outside the United States shall be distributed to purses.\n (d) The pari-mutuel tax rate authorized by paragraph (a) of this\nsubdivision shall be effective so long as a franchised corporation\nnotifies the racing and wagering board by August fifteenth of each year\nthat such pari-mutuel tax rate is effective of its intent to conduct a\nrace meeting at Aqueduct racetrack during the months of December,\nJanuary, February, March and April. For purposes of this paragraph such\nrace meeting shall consist of not less than ninety-five days of racing.\nNot later than May first of each year that such pari-mutuel tax rate is\neffective, the racing and wagering board shall determine whether a race\nmeeting at Aqueduct racetrack consisted of the number of days as\nrequired by this paragraph. In determining the number of race days,\ncancellation of a race day because of an act of God, which the racing\nand wagering board approves or because of weather conditions that are\nunsafe or hazardous which the racing and wagering board approves shall\nnot be construed as a failure to conduct a race day. Additionally,\ncancellation of a race day because of circumstances beyond the control\nof such franchised corporation for which the racing and wagering board\ngives approval shall not be construed as a failure to conduct a race\nday. If the racing and wagering board determines that the number of days\nof racing as required by this paragraph have not occurred then the\npari-mutuel tax rate in paragraph (a) of this subdivision shall revert\nto the pari-mutuel tax rates in effect prior to January first, nineteen\nhundred ninety-five. Such franchised corporation shall pay to the racing\nand wagering board as a regulatory fee, which fee is hereby levied,\nfifty hundredths of one per centum of the total daily on-track\npari-mutuel pools of such franchised corporation.\n 2. a. Subject to the provisions of this section the payment of such\nstate tax shall be made to the commissioner of taxation and finance on\nthe last business day of each month and shall cover taxes due for the\nperiod from the sixteenth day of the preceding month through the\nfifteenth day of the current month provided, however, that such payments\nrequired to be made on March thirty-first shall include all taxes due\nand accruing through the last full week of racing in March of the\ncurrent year or as otherwise determined by the commissioner, and shall\nbe accompanied by a report under oath, showing such information as the\ncommissioner may require. A penalty of five per centum and interest at\nthe rate of one per centum per month from the date the report is\nrequired to be filed to the date of the payment of the tax shall be\npayable in case any tax imposed by this section is not paid when due. If\nthe commissioner determines that any moneys received by the commissioner\nunder this section were paid in error, the commissioner may cause the\nsame to be refunded without interest out of any moneys collected\nthereunder, provided an application therefor is filed with the\ncommissioner within one year from the time the erroneous payment was\nmade. Such taxes, interest and penalties when collected, after the\ndeduction of refunds of taxes erroneously paid, shall be paid by the\ncommissioner into the general fund of the state treasury.\n b. The balance of the retained percentage of such pool and of the\nbreaks shall be held by such franchised corporation for its corporate\npurposes, except as provided in paragraph c of this subdivision.\n c. An amount equal to three per centum of the total pools resulting\nfrom on-track regular bets and an amount equal to four per centum of the\ntotal pools resulting from on-track multiple and exotic bets, and twelve\nper centum of the total pools resulting from super exotic bets shall be\nused exclusively for purses (including stakes, premiums and prizes)\nawarded in races conducted by such franchised corporation provided,\nhowever, that during the period June first, nineteen hundred ninety-five\nthrough September ninth, nineteen hundred ninety-nine, such amounts for\non-track regular and on-track multiple bets shall be two and thirty-five\nhundredths per centum and five and one-half per centum, respectively.\nDuring the period September tenth, nineteen hundred ninety-nine through\nMarch thirty-first, two thousand one, such amounts for on-track regular,\nmultiple and exotic bets shall be five and four hundredths per centum\nand for the period April first, two thousand one through July\ntwenty-fourth, two thousand one and after June thirtieth, two thousand\nfour, such amount for such bets shall be five and ninety-four hundredths\nper centum and on and after July twenty-fifth, two thousand one through\nJune thirtieth, two thousand four, such amounts for all on-track bets\nshall be five and forty hundredths per centum. Any portion of such per\ncentum not so used during any year shall be so used during the following\nyear, failing which it shall be payable to the commissioner as\nadditional tax. Such additional tax shall be payable on or before April\nfirst in the year following the year in which it is not so used and the\nprovisions of paragraph a of this subdivision shall be applicable\nthereto except as to the time of payment.\n 3. 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 revenue\nretained by the franchised corporation, except as provided in former\narticle two-B of the general city law, and as otherwise provided in this\nchapter.\n 4. Notwithstanding any inconsistent provision of this chapter,\nwhenever the franchised corporation operates the Breeder's Cup Meet at\none of its racing facilities, such franchised corporation shall not be\nrequired to pay to the department of taxation and finance pursuant to\nthis section the pari-mutuel tax on the pari-mutuel pools of such\nfranchised corporation's races during the Breeder's Cup Meet. For the\npurposes of this subdivision, the Breeder's Cup Meet shall consist of\nthree days: the day on which the Breeder's Cup races are conducted, the\nday preceding such races and the day subsequent to such races.\n