N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 238: Disposition of pari-mutuel pools of the franchised corporation; percentage payable to state as a tax; authority of counties or certain ci...

§ 238. Disposition of pari-mutuel pools of the franchised corporation;

percentage payable to state as a tax; authority of counties or certain

cities to impose a tax. 1. (a) The franchised corporation authorized

under this chapter to conduct pari-mutuel betting at a race meeting or

races run thereat shall distribute all sums deposited in any pari-mutuel

pool to the holders of winning tickets therein, provided such tickets

are presented for payment before April first of the year following the

year of their purchase, less an amount that shall be established and

retained by such franchised corporation of between twelve to seventeen

percent of the total deposits in pools resulting from on-track regular

bets, and fourteen to twenty-one percent of the total deposits in pools

resulting from on-track multiple bets and fifteen to twenty-five percent

of the total deposits in pools resulting from on-track exotic bets and

fifteen to thirty-six percent of the total deposits in pools resulting

from on-track super exotic bets. The retention rate to be established is

subject to the prior approval of the commission. Such rate may not be

changed more than once per calendar quarter to be effective on the first

day of the calendar quarter. "Exotic bets" and "multiple bets" shall

have the meanings set forth in section five hundred nineteen of this

chapter. "Super exotic bets" shall have the meaning set forth in section

three hundred one of this chapter. For purposes of this section, a "pick

six bet" shall mean a single bet or wager on the outcomes of six races.

Out of the amount so retained there shall be paid by such franchised

corporation to the commissioner of taxation and finance, as a reasonable

tax by the state for the privilege of conducting pari-mutuel betting on

the races run at the race meetings held by such franchised corporation,

which tax is hereby levied, in the applicable percentage set forth in

subdivision one of section one hundred thirty-six of this chapter.

Payment to the New York state thoroughbred breeding and development fund

by such franchised corporation shall be one-half of one percent of total

daily on-track pari-mutuel pools resulting from regular, multiple and

exotic bets and three percent of super exotic bets and for the period

April first, two thousand one through December thirty-first, two

thousand twenty-seven, such payment shall be seven-tenths of one percent

of regular, multiple and exotic pools.

(b) An amount equal to fifty percent of any compensation received by a

franchised corporation from simulcasting or from wagering conducted

outside the United States or outside New York state and within the

United States shall be distributed to purses, except with respect to

such compensation received from Connecticut which shall be computed as a

percentage of wagering handle in a manner approved by the commission.

(c) An amount equal to fifty percent of any compensation received by

the franchised corporation from simulcasting or from wagering conducted

outside the United States shall be distributed to purses.

(d) (i) The franchised corporation shall conduct a race meeting at

Aqueduct racetrack during the months of December, January, February,

March and April. For purposes of this paragraph such race meeting shall

consist of not less than ninety-five days of racing unless otherwise

agreed to in writing by the New York Thoroughbred Breeders Inc., the New

York thoroughbred horsemen's association (or such other entity as is

certified and approved pursuant to section two hundred twenty-eight of

this article) and approved by the commission. Not later than May first

of each year, the commission shall determine whether a race meeting at

Aqueduct racetrack consisted of the number of days as required by this

subparagraph. In determining the number of race days, cancellation of a

race day because of an act of God that the commission approves or

because of weather conditions that are unsafe or hazardous that the

commission approves shall not be construed as a failure to conduct a

race day. Additionally, cancellation of a race day because of

circumstances beyond the control of such franchised corporation for

which the commission gives approval shall not be construed as a failure

to conduct a race day.

(ii) Such franchised corporation shall pay to the commission as a

regulatory fee, which fee is hereby levied, six-tenths of one percent of

the total daily on-track pari-mutuel pools of such franchised

corporation.

2. a. Subject to the provisions of this section the payment of such

state tax shall be made to the commissioner of taxation and finance on

the last business day of each month and shall cover taxes due for the

period from the sixteenth day of the preceding month through the

fifteenth day of the current month provided, however, that such payments

required to be made on March thirty-first shall include all taxes due

and accruing through the last full week of racing in March of the

current year or as otherwise determined by the commissioner, and shall

be accompanied by a report under oath, showing such information as the

commissioner may require. A penalty of five percent and interest at the

rate of one percent per month from the date the report is required to be

filed to the date of the payment of the tax shall be payable in case any

tax imposed by this section is not paid when due. If the commissioner

determines that any moneys received by the commissioner under this

section were paid in error, the commissioner may cause the same to be

refunded without interest out of any moneys collected thereunder,

provided an application therefor is filed with the commissioner within

one year from the time the erroneous payment was made. Such taxes,

interest and penalties when collected, after the deduction of refunds of

taxes erroneously paid, shall be paid by the commissioner into the

general fund of the state treasury.

b. The balance of the retained percentage of such pool shall be held

by such franchised corporation for its corporate purposes, except as

provided in paragraph c of this subdivision.

c. An amount equal to five and ninety-four hundredths percent of the

total pools resulting from on-track regular bets and an amount equal to

five and ninety-four hundredths percent of the total pools resulting

from on-track multiple and exotic bets, and twelve percent of the total

pools resulting from super exotic bets shall be used exclusively for

purses (including stakes, premiums and prizes) awarded in races

conducted by such franchised corporation. Any portion of such percent

not so used during any year shall be so used during the following year.

3. No county, city, town, village or other political subdivision of

the state may impose, levy or collect a tax on admission fees or tickets

of admission, on wagers made by patrons in the form of purchases of

pari-mutuel tickets or upon such tickets, on pari-mutuel pools, on

breaks, on dividends or payments made to winning bettors, or on revenue

retained by the franchised corporation, except as provided in former

article two-B of the general city law, and as otherwise provided in this

chapter.