§ 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, plus the breaks. 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. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. 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, the following
percentages of the total pool for regular and multiple bets five percent
of regular bets and four percent of multiple bets plus twenty percent of
the breaks; for exotic wagers seven and one-half percent plus twenty
percent of the breaks, and for super exotic bets seven and one-half
percent plus fifty percent of the breaks.

For the period April first, two thousand one through December
thirty-first, two thousand twenty-four, such tax on all wagers shall be
one and six-tenths percent, plus, in each such period, twenty percent of
the breaks. 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-four, 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 pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation
notifies the commission by August fifteenth of each year that such
pari-mutuel tax rate is effective of its intent to 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 that such pari-mutuel tax rate is effective,
the commission shall determine whether a race meeting at Aqueduct
racetrack consisted of the number of days as required by this paragraph.
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. If the commission determines that the number of days of racing as
required by this paragraph have not occurred then the pari-mutuel tax
rate in paragraph (a) of this subdivision shall revert to the
pari-mutuel tax rates in effect prior to January first, nineteen hundred
ninety-five.

(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 per centum and interest at
the rate of one per centum 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 and of the
breaks 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,
failing which such portion shall be payable to the commissioner as
additional tax. Such additional tax shall be payable on or before April
first in the year following the year in which such portion is not so
used and the provisions of paragraph a of this subdivision shall be
applicable thereto except as to the time of payment.

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.

4. Notwithstanding any inconsistent provision of this chapter,
whenever the franchised corporation operates the Breeder's Cup Meet at
one of its racing facilities, such franchised corporation shall not be
required to pay to the department of taxation and finance pursuant to
this section the pari-mutuel tax on the pari-mutuel pools of such
franchised corporation's races during the Breeder's Cup Meet. For the
purposes of this subdivision, the Breeder's Cup Meet shall consist of
three days: the day on which the Breeder's Cup races are conducted, the
day preceding such races and the day subsequent to such races.