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SECTION 527
Disposition of off-track pools; state tax
Racing, Pari-Mutuel Wagering and Breeding Law (PML) CHAPTER 47-A, ARTICLE 5-A
§ 527. Disposition of off-track pools; state tax. Each regional
corporation conducting off-track betting shall distribute all sums
deposited in any pari-mutuel pool through such corporation to the
holders of winning tickets therein, providing such tickets be presented
for payment prior to April first of the year following the year of their
purchase, less an amount that it shall retain at the same rate
established by the track accepting wagers from each such regional
corporation.

1. The disposition of the retained commission from pools resulting
from regular, multiple or exotic bets, as the case may be, whether
placed on races run within a region or outside a region, conducted by
racing corporations, harness racing associations or corporations,
quarter horse racing associations or corporations or races run outside
the state shall be governed by the tables in paragraphs a and b of this
subdivision. The rate denominated "state tax" shall represent the rate
of a reasonable tax imposed upon the retained commission for the
privilege of conducting off-track pari-mutuel betting, which tax is
hereby levied and shall be payable in the manner set forth in this
section. Each off-track betting corporation shall pay to the commission
as a regulatory fee, which fee is hereby levied, six-tenths of one
percent of the total daily pools of such corporation. Each corporation
shall also pay twenty percent of the breaks derived from bets on harness
races and fifty percent of the breaks derived from bets on all other
races to the agriculture and New York State horse breeding and
development fund and to the thoroughbred breeding and development fund,
the total of such payments to be apportioned fifty percent to each such
fund. For the purposes of this section, the New York city, Suffolk,
Nassau, and the Catskill regions shall constitute a single region and
any thoroughbred track located within the Capital District region shall
be deemed to be within such single region. A "regional meeting" shall
refer to either harness or thoroughbred meetings, or both, except that a
franchised corporation shall not be a regional track for the purpose of
receiving distributions from bets on thoroughbred races conducted by a
thoroughbred track in the Catskill region conducting a mixed meeting.
With the exception of a harness racing association or corporation first
licensed to conduct pari-mutuel wagering at a track located in Tioga,
Saratoga or Westchester county after January first, two thousand five,
racing corporations first licensed to conduct pari-mutuel racing after
January first, nineteen hundred eighty-six or a harness racing
association or corporation first licensed to conduct pari-mutuel
wagering at a track located in Genesee County after January first, two
thousand five, and quarter horse tracks shall not be "regional tracks";
if there is more than one harness track within a region, such tracks
shall evenly divide payments made pursuant to the tables in paragraphs a
and b of this subdivision when neither track is running. In the event a
track elects to reduce its retained percentage from any or all of its
pari-mutuel pools, the payments to the track holding the race and the
regional track required by paragraphs a and b of this subdivision shall
be reduced in proportion to such reduction. Nothing in this section
shall be construed to authorize the conduct of off-track betting
contrary to the provisions of section five hundred twenty-three of this
article.

a. Regular and multiple bets:

Track

holding Regional State

race track tax
Pools on races run by:
Franchised corporations:

in region;..................... 3.50 N/A .30

out-region, during a regional

meeting;....................... 1.00 2.50 .30

out-region, no regional

meeting;....................... 1.75 1.75 .30
Racing corporations

in special

betting district:

in-special betting district;... 3.80 N/A 1.00

out-district, during a regional

meeting;....................... 1.00 2.80 1.00

out-district, no regional

meeting;....................... 1.90 1.90 1.00
Harness racing associations or

corporations within Suffolk,

Nassau, or Catskill regions:

in region;..................... 4.00 N/A .70

out-region, during a regional

meeting;....................... 1.00 3.00 .70

out-region, no regional

meeting;....................... 2.00 2.00 .70
Harness racing associations or

corporations:

in-special betting

district;...................... 4.00 N/A .50

out-district, during a

regional meeting;.............. 1.00 3.00 .50

out-district, no regional

meeting;....................... 2.00 2.00 .50
Other harness racing associations

or corporations:

in region;..................... 4.00 N/A .50

out-region, during a regional

meeting;....................... 1.00 3.00 .50

out-region, no regional

meeting;....................... 2.00 2.00 .50
Quarter horse racing associations

or corporations;............... 3.50 N/A 1.10
Out-of-state tracks:............. 3.50 divided 1.10

pursuant to

paragraph

g of this

subdivision

b. Exotic bets:

Track

holding Regional State

race track tax
Pools on races run by:
Franchised corporations:

in region;..................... 6.50 N/A 1.30

out-region, during a regional

meeting;....................... 2.00 4.50 1.30

out-region, no regional

meeting;....................... 3.25 3.25 1.30
Racing corporations

in special

betting district:

in-special betting districts;.. 6.80 N/A 3.00

out-district, during a regional

meeting;....................... 2.00 4.80 3.00

out-district, no regional

meeting;....................... 3.40 3.40 3.00
Harness racing associations or

corporations within Suffolk,

Nassau, or Catskill

regions:

in region;..................... 7.00 N/A 2.70

out-region, during a regional

meeting;....................... 2.00 5.00 2.70

out-region, no regional

meeting;....................... 3.50 3.50 2.70
Harness racing associations

or corporations:

in-special betting

district;...................... 7.00 N/A 2.50

out-district, during a

regional meeting;.............. 2.00 5.00 2.50

out-district, no regional

meeting;....................... 3.50 3.50 2.50
Other harness racing associa-

tions or corporations:

in-region;..................... 7.00 N/A 2.50

out-region, during a

regional meeting;.............. 2.00 5.00 2.50

out-region, no regional

meeting;....................... 3.50 3.50 2.50
Quarter horse racing associa-

tions or corporations;......... 6.50 N/A 3.10
Out-of-state tracks:............. 6.50 divided 3.10

pursuant to

paragraph

g of this

subdivision

c. Super Exotic Bets:

Track

holding Regional State

race track tax
Pools on races run by:
Franchised corporations:

in region;..................... 12.00 N/A 3.50

out-region, during a regional

meeting;....................... 3.00 10.00 2.50

out-region, no regional

meeting;....................... 6.00 6.00 3.50
Racing corporations

in special

betting district:

in-special betting districts;.. 12.00 N/A 3.50

out-district, during a regional

meeting;....................... 3.00 10.00 2.50

out-district, no regional

meeting;....................... 6.00 6.00 3.50
Harness racing associations or

corporations within Suffolk,

Nassau, or Catskill regions:

in-region;..................... 12.00 N/A 3.50

out-region, during a regional

meeting;....................... 3.00 10.00 2.50

out-region, no regional

meeting;....................... 6.00 6.00 3.50
Harness racing associations

or corporations:

in-special betting

district;...................... 12.00 N/A 3.50

out-district, during a

regional meeting;.............. 3.00 10.00 2.50

out-district, no regional

meeting;....................... 6.00 6.00 3.50
Other harness racing associations

or corporations:

in-region;..................... 12.00 N/A 3.50

out-region, during a

regional meeting;.............. 3.00 10.00 2.50

out-region, no regional

meeting;....................... 6.00 6.00 3.50

d. For the portion of the Western region included within a
thoroughbred special betting district and not within a harness special
betting district, when no thoroughbred race meeting is conducted by a
racing corporation located within such thoroughbred special district,
the distribution of the retained commission to "regional tracks" by such
regional corporation derived from wagers placed within such special
betting district shall be divided as follows:

(i) when a harness corporation located in such district is conducting
a meet the full amount to such harness corporation; and when a harness
corporation in the region but not located in such district is conducting
a meet, forty percent to the thoroughbred racing corporation and sixty
percent to the harness corporation conducting a meet;

(ii) when no racing is being conducted, forty per centum to the
thoroughbred racing corporation and the balance divided equally between
the harness racing corporations located in such region; and

(iii) when no racing is being conducted and no more than one harness
racing association is licensed during the calendar year to conduct a
race meeting, fifty per centum to the thoroughbred racing corporation
and fifty per centum to the harness racing association located in such
region.

e. For the portions of the Capital District, Catskill, Central and
Western regions included within a harness racing special betting
district, except those portions described in paragraph e of this
subdivision, the harness track located in such special district shall be
the "regional track" for the purposes of the distributions made pursuant
to paragraphs a and b of this subdivision.

f. For the portions of the Catskill, Central and Western regions
included in both a thoroughbred special betting district and a harness
special betting district, the distribution of the retained commission to
"regional tracks" by such regional corporations derived from wagers
placed within such portions of such regions shall be divided as follows:

(i) when a harness corporation located in the harness special betting
district is conducting a meet and no thoroughbred race meeting is being
conducted by a racing corporation located in the thoroughbred special
betting district, the full amount to such harness association;

(ii) when a thoroughbred corporation located in the thoroughbred
special betting district is conducting a meet and no harness race
meeting is being conducted by a harness association located in the
harness special betting district, the full amount to such thoroughbred
corporation;

(iii) when no racing is being conducted the amount to be divided
evenly between the thoroughbred track located in such thoroughbred
special betting district and the harness track located in such harness
special betting district.

g. With respect to the amounts payable to track operators from the
retained commission on pools resulting from thoroughbred or harness
races outside this state, the regional corporation shall first pay any
contractual obligation owed to the out-of-state track operator, or to
another state or entity thereof, as the case may be. The balance of such
amounts shall be divided as follows:

(i) for the betting region composed of the New York city, Suffolk and
Nassau regions and the portion of the Catskill region outside a special
betting district: when both harness and thoroughbred meets are in
progress in such betting region, the balance to the association or
corporation holding the same type of meet as the out-of-state race; when
only a harness meet is in progress in such betting region, the balance
to the harness track operator; when only a thoroughbred meet is in
progress in such betting region, the balance to the thoroughbred track
operator; when no meet is in progress, fifty per centum of the balance
to the franchised corporation and the remainder divided among harness
racing corporations or associations within such betting region;

(ii) for the Capital District region and the portion of the Western
region outside a special betting district: when a harness meet is in
progress in such region and a thoroughbred meet is in progress outside a
special betting district, the balance to whichever operator is
conducting the same type of meet as the out-of-state race; when no
harness meet is in progress, the balance to the racing association
outside a special betting district; and when no meet is in progress
within such region and no thoroughbred meet is in progress outside a
special betting district, fifty per centum of the balance to the racing
association outside a special betting district and the remainder to the
licensed harness racing corporations or associations within such region;

(iii) for the portion of the Western region within a thoroughbred
special betting district but not within a harness special betting
district: when a harness meet and a thoroughbred meet are in progress
within such region and the district, the balance to the association or
corporation conducting the same type of meet as the out-of-state or
out-of-region race; when a harness meet is in progress in such region
but no thoroughbred meet is in progress in the special betting district,
the balance to the harness track operator within such region; when only
a thoroughbred meet is in progress in such betting region, the balance
to the thoroughbred track operator; and when no meet is in progress
within such region the balance is divided, forty per centum to the
thoroughbred racing corporation within the district and the remainder
divided between the harness racing associations or corporations within
the region provided, however, that if no more than one harness racing
association or corporation is licensed to conduct a race meeting, fifty
per centum to the thoroughbred racing corporation within the district
and fifty per centum to the licensed harness racing association within
the region;

(iv) for the portions of the Capital District, Catskill, Central and
Western regions included in a harness special betting district: when a
harness meeting is in progress in such harness special betting district
and a thoroughbred meeting is in progress outside the thoroughbred
special betting district, the balance to the association or corporation
holding the same kind of race; when no harness meet is in progress, the
balance to the racing corporation holding a thoroughbred race meeting
outside the thoroughbred special betting district; when a harness
meeting is in progress in the harness special betting district and no
thoroughbred meeting is in progress outside the thoroughbred special
betting district, the balance to the harness track operating in such
harness special betting district; when no harness meet is being held
within such harness special betting district and no thoroughbred meet is
being held outside the thoroughbred special betting district, fifty per
centum of such amount to the harness racing corporation in such harness
special betting district and fifty per centum to the thoroughbred track
operator outside the thoroughbred special betting district;

(v) for the portions of the Catskill and Western regions included in
both a thoroughbred special betting district and a harness special
betting district: when a harness meet and a thoroughbred meet are in
progress within both such districts the balance to the association or
corporation conducting the same type of meet as the out-of-state race;
when a harness meet is in progress but no thoroughbred meet the balance
to the harness track operator within such district; when a thoroughbred
meet is in progress but no harness meet the balance to the thoroughbred
track operator in the district; and when no meet is in progress the
balance to be divided evenly between the harness track operator in the
harness special betting district and the thoroughbred operator located
within the thoroughbred special betting district;

(vi) notwithstanding any contrary provision contained in this section,
the portion of retained commissions from off-track pools distributable
to the track holding the race shall be for regular and multiple bets:
five and three-quarters per centum and for exotic bets: seven and
three-quarters per centum for the three races commonly referred to as
the Triple Crown consisting of the Kentucky Derby, the Preakness and the
Belmont Stakes, run respectively at Churchill Downs, Kentucky, at
Pimlico, Maryland and at Belmont Park, New York; additionally the same
commissions shall apply to the series of races known as the Breeders'
Cup and the portion distributable from retained commissions shall be
paid to the Breeders' Cup, ltd. irrespective of whether the races are
held at a track within or without the state; provided, however, that as
a condition precedent to the obligation of a regional corporation to
make the foregoing distributions as required in this subparagraph with
respect to wagers on the Belmont Stakes, such regional corporation shall
have accepted wagers on at least one or both of the immediately
preceding Kentucky Derby and Preakness races; and provided further that
the distributable portion of such retained commissions with respect to
the Belmont Stakes shall be deemed to include the additional amounts
payable pursuant to the provisions of paragraph b of subdivision three
of this section; and provided further, notwithstanding the foregoing
provisions of this subparagraph, that of the retained commissions
resulting from off-track wagers placed in a special betting district on
the Belmont Stakes, the track holding the race shall receive one per
centum from regular and multiple bets and two per centum from exotic
bets, and the thoroughbred track conducting racing within such district
shall receive four and three-quarters per centum from regular and
multiple bets, and five and three-quarters per centum from exotic bets.

2. Payment of the state tax imposed by this section shall be made to
the commissioner by each such regional corporation 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 it 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 is 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.

3. a. Of the portion of retained commission on off-track pools
distributed to racing corporations, one-half shall be used exclusively
for the purpose of increasing purses, including stakes, premiums and
prizes, awarded to horses in races conducted by such associations or
corporations and any portion of said fraction not so used during any
year shall be used during the following year, failing which it shall be
returned to the regional off-track betting corporations on or before
April first in the year following the year in which it is not so used to
be distributed prior to June first to participating local governments in
the same proportions as the distributions to such governments in the
prior calendar year, provided, however, in a harness special betting
district the portion of retained commissions to be used for purses or
the methodology for calculating the amount to be used for purses may be
specified in a written contract between a harness racing association or
corporation and its representative horsemen's association.

* b. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one and eighty-five hundredths percent of regular pools and an
amount equal to two and thirty-five hundredths percent of multiple pools
and two and thirty-five hundredths percent of exotic pools derived from
wagers on races conducted by a franchised corporation shall be paid to
such corporation to be used exclusively for the purpose of increasing
purses, including stakes, premiums and prizes. An additional two and
sixty-five hundredths shall be paid to the regional harness track. When
there is no regional meeting, an amount equal to four and sixty-five
hundredths shall be paid to such nonprofit racing association of which
two and nine tenths shall be used exclusively for the purpose of
increasing purses, including stakes, premiums and prizes. An additional
one and eighty-five hundredths shall be paid to the regional harness
track. In addition to any other amounts required to be paid to a
franchised corporation, for the period July twenty-first, nineteen
hundred ninety-five through July twenty-fourth, two thousand one, an
additional one and twenty-five hundredths percent of multiple pools
derived from wagers on races conducted by a franchised corporation shall
be paid to such association for its own use and purposes. Any portion of
said amount not so used during any year shall be used during the
following year, failing which it shall be returned to the regional
corporation on or before April first in the year following the year in
which it is not so used to be distributed to the participating local
governments.

* NB Effective until July 1, 2022

* b. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one and one-quarter percent of regular and multiple pools and
three-quarters of one percent of exotic pools derived from wagers on
races conducted by a nonprofit racing association shall be paid to such
nonprofit racing association to be used exclusively for the purpose of
increasing purses, including stakes, premiums and prizes. An additional
two and sixty-five hundredths shall be paid to the regional harness
track. When there is no regional meeting, an amount equal to four and
sixty-five hundredths shall be paid to such nonprofit racing association
of which two and nine-tenths shall be used exclusively for the purpose
of increasing purses, including stakes, premiums and prizes. An
additional one and eighty-five hundredths shall be paid to the regional
harness track. Any portion of said amount not so used during any year
shall be used during the following year, failing which it shall be
returned to the regional corporation on or before April first in the
year following the year in which it is not so used to be distributed to
the participating local governments.

* NB Effective July 1, 2022

c. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one and one-tenth percent of regular and multiple pools and
six-tenths of one percent of exotic pools derived from wagers on races
conducted by a thoroughbred racing corporation, licensed by the
commission, other than a franchised corporation, shall be paid to such
thoroughbred racing corporation to be used exclusively for the purpose
of increasing purses, including stakes, premiums and prizes. Any portion
of such amount not so used during any year shall be used during the
following year, failing which such amount shall be returned to the
regional corporation on or before April first in the year following the
year in which it is not so used to be distributed to the participating
local governments.

4. a. Of the portion of retained commission on off-track pools
distributed to harness racing associations or corporations authorized to
conduct racing in Westchester or Nassau county, one-half shall be used
exclusively for the purpose of increasing purses, including stakes,
premiums and prizes awarded to horses in races conducted by such
associations or corporations.

b. The portion of retained commission on off-track pools distributed
to other harness or quarter horse racing associations or corporations
shall be deemed to be part of the on-track commission for purposes of
calculating purses, including stakes, premiums and prizes, awarded to
horses in races conducted by such associations or corporations.

5. a. One percent of daily pools derived from bets on harness races
shall be paid to the agriculture and New York state breeding and
development fund except that for super exotic betting pools such amount
shall be three percent of such bets.

b. An amount equal to one-half of one percent of total daily off-track
pari-mutuel pools resulting from regular, multiple and exotic bets and
three percent of super exotic bets on thoroughbred or steeplechase races
shall be paid to the New York state thoroughbred breeding and
development fund.

c. From the total breaks retained by a regional corporation, an amount
equal to ten percent of the breaks derived from bets on quarter horse
races shall be paid to the New York state quarter horse breeding and
development fund.

5-a. Notwithstanding any other provision of law, a regional
corporation shall retain, in addition to those amounts described in the
opening paragraph of this section, from regular and multiple bets on
races run at tracks electing to withhold pursuant to section two hundred
thirty-seven or section three hundred nineteen of this chapter, an
amount equal to one percent of pools resulting from total wagering at
such tracks, one-half of which shall be paid to such tracks or
non-profit county agricultural society, except that the full one percent
shall be paid to a thoroughbred track in the Catskill region conducting
a mixed meeting, to be used exclusively for capital improvements
pursuant to sections two hundred thirty-seven and three hundred nineteen
of this chapter and subject to the rules and regulations of the
commission and one-half to be retained by the regional corporation for
its own corporate purposes.

6. The net amount remaining to each regional corporation after payment
of taxes and distributions pursuant to this section and after payment of
operating expenses and principal and interest on any obligations shall,
in the case of the New York city off-track betting corporation, be
retained by the corporation, and in the case of other regional
corporations shall accrue and be payable to participating counties
pursuant to section five hundred sixteen of this chapter; provided,
however, that the New York city off-track betting corporation, after
payment of all current taxes and distributions shall use such net amount
to pay all liabilities of such corporation as of the effective date of
the chapter of the laws of two thousand eight which amended this
subdivision, and at such time as all liabilities have been paid such
corporation shall pay remaining amounts to the comptroller of the state
of New York for deposit in the general fund of the state.

7. In addition to any other amount required by this section, of the
portion of commissions retained by a regional corporation, an amount
equal to one per centum of multiple pools derived from wagers on races
conducted by a thoroughbred racing corporation, licensed by the board,
other than a franchised corporation, shall be paid to such thoroughbred
racing corporation and held by such corporation for its own use and
purposes, except that an amount equal to one-half per centum shall be
used exclusively for the purpose of increasing purses, including stakes,
premiums and prizes, awarded to horses in races conducted by such
corporation. Any portion of said amount not so used during any year
shall be used during the following year, failing which it shall be
returned to the regional corporation on or before April first in the
year following the year in which it is not so used to be distributed to
the participating local governments.

8. From the nineteen per centum of the total deposits in pools
resulting from multiple bets on thoroughbred races outside this state,
two per centum shall be paid to a franchised corporation to be used
exclusively for the purpose of increasing purses, including stakes,
premiums and prizes. Any portion of said amount not so used during any
year shall be used during the following year, failing which it shall be
returned to the regional corporation on or before April first in the
year following the year in which it is not so used to be distributed to
the participating local governments. Notwithstanding the provisions of
section fifteen of chapter three hundred sixty-three of the laws of
nineteen hundred eighty-four, the provisions of this subdivision shall
not expire.