N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 418: Disposition of pari-mutuel pools

§ 418. Disposition of pari-mutuel pools. 1. Every association or

corporation authorized under section four hundred five of this article

to conduct pari-mutuel betting at a quarter horse race meeting on races

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

to the holders of winning tickets therein provided such tickets be

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

of their purchase, less seventeen percent of the total deposits in pools

resulting from regular on-track bets and less nineteen percent of the

total deposits in pools resulting from multiple bets and less

twenty-five percent of the total deposits in pools resulting from exotic

on-track bets. "Multiple bet" or "multiple wager" shall mean a single

bet or wager on two horses, evidenced by a single ticket and

representing an interest in a single betting pool. "Exotic bet" or

"exotic wager" shall mean a single bet or wager on three or more horses,

evidenced by a single ticket and representing an interest in a single

betting pool. Of the sum so retained there shall be eight percent, plus

sixty-five percent of the amount of the breaks from on-track regular,

multiple and exotic bets shall be paid by such corporation or

association to the department 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 quarter horse race meetings held by such

corporation or association, which tax is hereby levied, in the

applicable percentage set forth in subdivision one of section one

hundred thirty-six of this chapter. The payment of such state tax shall

be made to the department of taxation and finance at such regular

intervals as the department of taxation and finance may require, and

shall be accompanied by a report under oath showing the total of all

such contributions together with such other information as the

department of taxation and finance 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 payment of the tax

shall be payable in case any tax imposed by this section is not paid

when due. If the department of taxation and finance determines that any

moneys received under this section were paid in error, it may cause the

same to be refunded without interest out of any moneys collected

thereunder, provided an application therefor is filed with it 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 department of taxation and

finance into the general fund of the state treasury.

2. Except as may be authorized by the legislature, no county, city,

town, village or other political subdivision of the state may impose,

levy or collect a tax on admission fees or tax on 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 that part of the pari-mutuel pools or

breaks to be retained by quarter horse racing corporations or

associations under this section.

3. The sums paid by any corporation or association to the department

of taxation and finance shall be determined by multiplying each

applicable rate for total daily pools from on-track regular bets by the

percentage that on-track regular bets is of the total on-track daily

pool and by multiplying each applicable rate for total daily pools on

on-track exotic bets by the percentage that exotic bets is of total

daily pool, then combining the two determined percentages and applying

the result to the appropriate level of the total daily pool from

on-track regular and exotic bets.