Legislation

§ 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-six, 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.