§ 238 — Disposition of pari-mutuel pools of the franchised corporation; percentage payable to state as a tax; authority of counties or certain ci...

§ 238. Disposition of pari-mutuel pools of the franchised corporation;\npercentage payable to state as a tax; authority of counties or certain\ncities to impose a tax. 1. (a) The franchised corporation authorized\nunder this chapter to conduct pari-mutuel betting at a race meeting or\nraces run thereat shall distribute all sums deposited in any pari-mutuel\npool to the holders of winning tickets therein, provided such tickets\nare presented for payment before April first of the year following the\nyear of their purchase, less an amount that shall be established and\nretained by such franchised corporation of between twelve to seventeen\npercent of the total deposits in pools resulting from on-track regular\nbets, and fourteen to twenty-one percent of the total deposits in pools\nresulting from on-track multiple bets and fifteen to twenty-five percent\nof the total deposits in pools resulting from on-track exotic bets and\nfifteen to thirty-six percent of the total deposits in pools resulting\nfrom on-track super exotic bets, plus the breaks. The retention rate to\nbe established is subject to the prior approval of the commission.\n Such rate may not be changed more than once per calendar quarter to be\neffective on the first day of the calendar quarter. "Exotic bets" and\n"multiple bets" shall have the meanings set forth in section five\nhundred nineteen of this chapter. "Super exotic bets" shall have the\nmeaning set forth in section three hundred one of this chapter. For\npurposes of this section, a "pick six bet" shall mean a single bet or\nwager on the outcomes of six races. The breaks are hereby defined as the\nodd cents over any multiple of five for payoffs greater than one dollar\nfive cents but less than five dollars, over any multiple of ten for\npayoffs greater than five dollars but less than twenty-five dollars,\nover any multiple of twenty-five for payoffs greater than twenty-five\ndollars but less than two hundred fifty dollars, or over any multiple of\nfifty for payoffs over two hundred fifty dollars. Out of the amount so\nretained there shall be paid by such franchised corporation to the\ncommissioner of taxation and finance, as a reasonable tax by the state\nfor the privilege of conducting pari-mutuel betting on the races run at\nthe race meetings held by such franchised corporation, the following\npercentages of the total pool for regular and multiple bets five percent\nof regular bets and four percent of multiple bets plus twenty percent of\nthe breaks; for exotic wagers seven and one-half percent plus twenty\npercent of the breaks, and for super exotic bets seven and one-half\npercent plus fifty percent of the breaks.\n For the period April first, two thousand one through December\nthirty-first, two thousand twenty-six, such tax on all wagers shall be\none and six-tenths percent, plus, in each such period, twenty percent of\nthe breaks. Payment to the New York state thoroughbred breeding and\ndevelopment fund by such franchised corporation shall be one-half of one\npercent of total daily on-track pari-mutuel pools resulting from\nregular, multiple and exotic bets and three percent of super exotic bets\nand for the period April first, two thousand one through December\nthirty-first, two thousand twenty-six, such payment shall be\nseven-tenths of one percent of regular, multiple and exotic pools.\n (b) An amount equal to fifty percent of any compensation received by a\nfranchised corporation from simulcasting or from wagering conducted\noutside the United States or outside New York state and within the\nUnited States shall be distributed to purses, except with respect to\nsuch compensation received from Connecticut which shall be computed as a\npercentage of wagering handle in a manner approved by the commission.\n (c) An amount equal to fifty percent of any compensation received by\nthe franchised corporation from simulcasting or from wagering conducted\noutside the United States shall be distributed to purses.\n (d) (i) The pari-mutuel tax rate authorized by paragraph (a) of this\nsubdivision shall be effective so long as a franchised corporation\nnotifies the commission by August fifteenth of each year that such\npari-mutuel tax rate is effective of its intent to conduct a race\nmeeting at Aqueduct racetrack during the months of December, January,\nFebruary, March and April. For purposes of this paragraph such race\nmeeting shall consist of not less than ninety-five days of racing unless\notherwise agreed to in writing by the New York Thoroughbred Breeders\nInc., the New York thoroughbred horsemen's association (or such other\nentity as is certified and approved pursuant to section two hundred\ntwenty-eight of this article) and approved by the commission. Not later\nthan May first of each year that such pari-mutuel tax rate is effective,\nthe commission shall determine whether a race meeting at Aqueduct\nracetrack consisted of the number of days as required by this paragraph.\nIn determining the number of race days, cancellation of a race day\nbecause of an act of God that the commission approves or because of\nweather conditions that are unsafe or hazardous that the commission\napproves shall not be construed as a failure to conduct a race day.\nAdditionally, cancellation of a race day because of circumstances beyond\nthe control of such franchised corporation for which the commission\ngives approval shall not be construed as a failure to conduct a race\nday. If the commission determines that the number of days of racing as\nrequired by this paragraph have not occurred then the pari-mutuel tax\nrate in paragraph (a) of this subdivision shall revert to the\npari-mutuel tax rates in effect prior to January first, nineteen hundred\nninety-five.\n (ii) Such franchised corporation shall pay to the commission as a\nregulatory fee, which fee is hereby levied, six-tenths of one percent of\nthe total daily on-track pari-mutuel pools of such franchised\ncorporation.\n 2. a. Subject to the provisions of this section the payment of such\nstate tax shall be made to the commissioner of taxation and finance on\nthe last business day of each month and shall cover taxes due for the\nperiod from the sixteenth day of the preceding month through the\nfifteenth day of the current month provided, however, that such payments\nrequired to be made on March thirty-first shall include all taxes due\nand accruing through the last full week of racing in March of the\ncurrent year or as otherwise determined by the commissioner, and shall\nbe accompanied by a report under oath, showing such information as the\ncommissioner may require. A penalty of five per centum and interest at\nthe rate of one per centum per month from the date the report is\nrequired to be filed to the date of the payment of the tax shall be\npayable in case any tax imposed by this section is not paid when due. If\nthe commissioner determines that any moneys received by the commissioner\nunder this section were paid in error, the commissioner may cause the\nsame to be refunded without interest out of any moneys collected\nthereunder, provided an application therefor is filed with the\ncommissioner within one year from the time the erroneous payment was\nmade. Such taxes, interest and penalties when collected, after the\ndeduction of refunds of taxes erroneously paid, shall be paid by the\ncommissioner into the general fund of the state treasury.\n b. The balance of the retained percentage of such pool and of the\nbreaks shall be held by such franchised corporation for its corporate\npurposes, except as provided in paragraph c of this subdivision.\n c. An amount equal to five and ninety-four hundredths percent of the\ntotal pools resulting from on-track regular bets and an amount equal to\nfive and ninety-four hundredths percent of the total pools resulting\nfrom on-track multiple and exotic bets, and twelve percent of the total\npools resulting from super exotic bets shall be used exclusively for\npurses (including stakes, premiums and prizes) awarded in races\nconducted by such franchised corporation. Any portion of such percent\nnot so used during any year shall be so used during the following year,\nfailing which such portion shall be payable to the commissioner as\nadditional tax. Such additional tax shall be payable on or before April\nfirst in the year following the year in which such portion is not so\nused and the provisions of paragraph a of this subdivision shall be\napplicable thereto except as to the time of payment.\n 3. No county, city, town, village or other political subdivision of\nthe state may impose, levy or collect a tax on admission fees or tickets\nof admission, on wagers made by patrons in the form of purchases of\npari-mutuel tickets or upon such tickets, on pari-mutuel pools, on\nbreaks, on dividends or payments made to winning bettors, or on revenue\nretained by the franchised corporation, except as provided in former\narticle two-B of the general city law, and as otherwise provided in this\nchapter.\n 4. Notwithstanding any inconsistent provision of this chapter,\nwhenever the franchised corporation operates the Breeder's Cup Meet at\none of its racing facilities, such franchised corporation shall not be\nrequired to pay to the department of taxation and finance pursuant to\nthis section the pari-mutuel tax on the pari-mutuel pools of such\nfranchised corporation's races during the Breeder's Cup Meet. For the\npurposes of this subdivision, the Breeder's Cup Meet shall consist of\nthree days: the day on which the Breeder's Cup races are conducted, the\nday preceding such races and the day subsequent to such races.\n