N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 418

§ 418. Disposition of pari-mutuel pools. 1. Every association or\ncorporation authorized under sections two hundred twenty-two through\nseven hundred five of this chapter to conduct pari-mutuel betting at a\nquarter horse race meeting on races run thereat shall distribute all\nsums deposited in any pari-mutuel pool to the holders of winning tickets\ntherein provided such tickets be presented for payment before April\nfirst of the year following the year of their purchase, less seventeen\nper centum of the total deposits in pools resulting from regular\non-track bets and less nineteen per centum of the total deposits in\npools resulting from multiple bets and less twenty-five per centum of\nthe total deposits in pools resulting from exotic on-track bets, plus\nthe breaks. "Multiple bet" or "multiple wager" shall mean a single bet\nor wager on two horses, evidenced by a single ticket and representing an\ninterest in a single betting pool. "Exotic bet" or "exotic wager" shall\nmean a single bet or wager on three or more horses, evidenced by a\nsingle ticket and representing an interest in a single betting pool. The\nbreaks for regular bets and multiple bets are hereby defined as the odd\ncents over any multiple of ten or for exotic bets, over any multiple of\nfifty calculated on the basis of one dollar and otherwise payable to a\npatron. Of the sum so retained the applicable tax rates for regular bets\nshall be three per centum; the applicable tax rates for multiple bets\nshall be three and one-half per centum; the applicable tax rates for\nexotic bets shall be eight per centum, plus sixty-five per centum of the\namount of the breaks from on-track regular, multiple and exotic bets\nshall be paid by such corporation or association to the state tax\ncommission as a reasonable tax by the state for the privilege of\nconducting pari-mutuel betting on the races run at the quarter horse\nrace meetings held by such corporation or association, which tax is\nhereby levied, and the balance of the retained percentage of such pool\nand of the breaks may be held by such corporation or association for its\nown use and purposes. The payment of such state tax shall be made to the\nstate tax commission at such regular intervals as the said tax\ncommission may require, and shall be accompanied by a report under oath\nshowing the total of all such contributions together with such other\ninformation as the said tax commission may require. A penalty of five\nper centum and interest at the rate of one per centum per month from the\ndate the report is required to be filed to the date of payment of the\ntax shall be payable in case any tax imposed by this section is not paid\nwhen due. If the state tax commission determines that any moneys\nreceived under this section were paid in error, it may cause the same to\nbe refunded without interest out of any moneys collected thereunder,\nprovided an application therefor is filed with it within one year from\nthe 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 state tax commission into the\ngeneral fund of the state treasury. Ten per centum of the breaks shall\nbe paid to the New York state quarter horse breeding and development\nfund.\n 2. Except as may be authorized by the legislature, no county, city,\ntown, village or other political subdivision of the state may impose,\nlevy or collect a tax on admission fees or tax on admission, on wagers\nmade by patrons in the form of purchases of pari-mutuel tickets or upon\nsuch tickets, on pari-mutuel pools, on breaks, on dividends or payments\nmade to winning bettors, or on that part of the pari-mutuel pools or\nbreaks to be retained by quarter horse racing corporations or\nassociations under this section.\n 3. The sums paid by any corporation or association to the state tax\ncommission shall be determined by multiplying each applicable rate for\ntotal daily pools from on-track regular bets by the percentage which\non-track regular bets is of the total on-track daily pool and by\nmultiplying each applicable rate for total daily pools on on-track\nexotic bets by the percentage which exotic bets is of total daily pool,\nthen combining the two determined percentages and applying the result to\nthe appropriate level of the total daily pool from on-track regular and\nexotic bets.\n 4. Notwithstanding the provisions of subdivision one of this section,\nprior to April first, nineteen hundred eighty-nine, the applicable tax\nrates shall be as follows:\n a. From April first, nineteen hundred eighty-six through March\nthirty-first, nineteen hundred eighty-seven, of the sum retained the\napplicable tax rates for regular bets shall be three-quarters of one per\ncentum; the applicable rates for multiple, exotic bets shall be\nseven-eighths of one per centum; plus sixteen and one-quarter per centum\nof the breaks from all bets.\n b. After April first, nineteen hundred eighty-seven of the sum\nretained the applicable tax rates for all bets shall be one per centum\nof all wagers, plus twenty per centum of the breaks.\n