Legislation

§ 236. Disposition of pari-mutuel pools; percentage payable to state
as a tax; authority of counties or certain cities to impose a tax. 1.
Every corporation authorized under this chapter to conduct pari-mutuel
betting at a race meeting on races run thereat, except as provided in
section two hundred thirty-eight of this article with respect to the
franchised corporation, shall distribute all sums deposited in any
pari-mutuel pool to the holders of winning tickets therein, providing
such tickets be 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 racing corporation of between fourteen
to twenty percent of the total deposits in pools resulting from regular
on-track bets and less sixteen to twenty-two percent of the total
deposits in pools resulting from multiple on-track bets and less twenty
to thirty percent of the total deposits in pools resulting from exotic
on-track bets and less twenty to thirty-six percent of the total pools
resulting from super exotic on-track 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. Of the
amount so retained there shall be paid by such corporation 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
race meeting held by such corporation, which tax is hereby levied, in
the applicable percentage set forth in subdivision one of section one
hundred thirty-six of this chapter. Any such racing corporation shall,
for any twelve-month period beginning on April first in nineteen hundred
ninety and any year thereafter, expend an amount equal to at least
one-half of one percent of its on-track bets during the immediately
preceding calendar year for enhancements consisting of capital
improvements as defined by section two hundred thirty-seven of this
article, repairs to its physical plant, structures, and equipment used
in its racing or wagering operations and five special events at each
track in each calendar year, not otherwise conducted in the ordinary
course of business, the purpose of which shall be to encourage, attract
and promote track attendance and encourage new and continued patronage,
which events shall be subject to the prior approval of the commission
for purposes of this subdivision. In the determination of the amounts
expended for such enhancements, the commission may consider the
immediately preceding twelve-month calendar period or the average of the
two immediately preceding twelve-month calendar periods. Provided
further, however, that of the portion of the increased amounts retained
by such corporation above those amounts retained in nineteen hundred
eighty-four, an amount of such increase shall be distributed to purses
in the same proportion as commissions and purses were distributed during
nineteen hundred eighty-four as certified by the commission.

Such corporation shall pay to the New York state thoroughbred breeding
and development fund one-half of one percent of the total daily on-track
pari-mutuel pools from regular, multiple and exotic bets, and three
percent of super exotic bets.

Such corporation shall distribute to purses an amount equal to fifty
percent of any compensation it receives from simulcasting or from
wagering conducted outside the United States. Such 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 corporation.

2. The balance of the retained percentage of such pool shall be held
by such corporation for its own use and purposes, except that in
addition to any payments to purses provided for in subdivision one of
this section, an amount equal to two and one-half percent of the total
pools resulting from on-track regular bets and exotic bets and an amount
equal to three and one-half percent of the total pools resulting from
on-track multiple bets and an amount equal to twelve percent of on-track
super exotic bets shall be used exclusively for the purpose of
increasing purses (including stakes, premiums and prizes) awarded to
horses in races conducted by such corporation. Such two and one-half
percent and three and one-half percent shall be in addition to (i) four
and one-half percent of such total pools resulting from regular and
multiple wagers and five and one-half percent of such total pools
resulting from exotic wagers, or (ii) the percentage of such total pools
used for purses (including stakes, premiums and prizes) during the year
nineteen hundred eighty-two, whichever is larger. Such percentage of the
total pools mentioned in this subdivision shall be used for purses
(including stakes, premiums and prizes) in races hereafter conducted by
such corporation, and any portion not so used during any year shall be
so used during the following year. The commission shall report annually,
on or before July first, to the director of the budget, the chair of the
senate finance committee and the chair of the assembly ways and means
committee the extent to which such corporation used and retained
percentages for operations, maintenance, capital improvements,
advertising and promotion, administration and general overhead and
evaluate the effectiveness and make recommendations with respect to the
application of the rates of taxation. Such report shall also specify the
amount of such retained percentages used for investments not directly
related to racing activities and such amounts used to declare dividends
or other profit distributions, additions to capital stock, its sale and
transfer and additions to retained earnings. Such reports shall also
include an analysis of any such agreements or proposals to conduct or
otherwise expand wagers authorized under article ten of this chapter and
present its conclusions with respect to the conduct of such wagering,
the nature of such proposals and agreements, and recommendations to
ensure the future maintenance of the intent of this article.

3. Maintenance of pari-mutuel racing activity. For any calendar year
commencing on or after January first, nineteen hundred eighty-nine, a
racing corporation in zone two shall not conduct fewer pari-mutuel
programs and pari-mutuel races at its facilities than ninety percent of
the programs and races so conducted during nineteen hundred eighty-five
or during nineteen hundred eighty-six, whichever is less, unless such
corporation demonstrates to the satisfaction of the commission good
cause due to factors beyond the control of such corporation or because
the commission finds that it would be uneconomical or impractical for
such corporation to be assigned or conduct the prescribed number.

4. The payment of the state tax imposed by this section 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 of taxation and finance, and shall be
accompanied by a report under oath, showing the total of all such
contributions, together with such other information as the commissioner
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 commissioner of taxation and finance determines that any moneys
received under this subdivision were paid in error, the commissioner of
taxation and finance may cause the same to be refunded without interest
out of any moneys collected thereunder, provided an application therefor
is filed with the commissioner of taxation and finance 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 of taxation and
finance into the general fund of the state treasury.

5. 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 that
part of the pari-mutuel pools to be retained by racing corporations
under this section, except as otherwise provided in this chapter.