§ 418 — Disposition of pari-mutuel pools

§ 418. Disposition of pari-mutuel pools. 1. Every association or\ncorporation authorized under sections two hundred twenty-two through\nseven hundred five of this chapter to conduct pari-mutuel betting at a\nquarter horse race meeting on races run thereat shall distribute all\nsums deposited in any pari-mutuel pool to the holders of winning tickets\ntherein provided such tickets be presented for payment before April\nfirst of the year following the year of their purchase, less seventeen\npercent of the total deposits in pools resulting from regular on-track\nbets and less nineteen percent of the total deposits in pools resulting\nfrom multiple bets and less twenty-five percent of the total deposits in\npools resulting from exotic on-track bets, plus the breaks. "Multiple\nbet" or "multiple wager" shall mean a single bet or wager on two horses,\nevidenced by a single ticket and representing an interest in a single\nbetting pool. "Exotic bet" or "exotic wager" shall mean a single bet or\nwager on three or more horses, evidenced by a single ticket and\nrepresenting an interest in a single betting pool. The breaks for\nregular bets and multiple bets are hereby defined as the odd cents over\nany multiple of ten or for exotic bets, over any multiple of fifty\ncalculated on the basis of one dollar and otherwise payable to a patron.\nOf the sum so retained the applicable tax rates for regular bets shall\nbe three percent; the applicable tax rates for multiple bets shall be\nthree and one-half percent; the applicable tax rates for exotic bets\nshall be eight percent, plus sixty-five percent of the amount of the\nbreaks from on-track regular, multiple and exotic bets shall be paid by\nsuch corporation or association to the department of taxation and\nfinance as a reasonable tax by the state for the privilege of conducting\npari-mutuel betting on the races run at the quarter horse race meetings\nheld by such corporation or association, which tax is hereby levied, and\nthe balance of the retained percentage of such pool and of the breaks\nmay be held by such corporation or association for its own use and\npurposes. The payment of such state tax shall be made to the department\nof taxation and finance at such regular intervals as the department of\ntaxation and finance may require, and shall be accompanied by a report\nunder oath showing the total of all such contributions together with\nsuch other information as the department of taxation and finance may\nrequire. A penalty of five percent and interest at the rate of one\npercent per month from the date the report is required to be filed to\nthe date of payment of the tax shall be payable in case any tax imposed\nby this section is not paid when due. If the department of taxation and\nfinance determines that any moneys received under this section were paid\nin error, it may cause the same to be refunded without interest out of\nany moneys collected thereunder, provided an application therefor is\nfiled with it 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\ndepartment of taxation and finance into the general fund of the state\ntreasury. Ten percent of the breaks shall be paid to the New York state\nquarter horse breeding and development fund.\n 2. Except as may be authorized by the legislature, no county, city,\ntown, village or other political subdivision of the state may impose,\nlevy or collect a tax on admission fees or tax on admission, on wagers\nmade by patrons in the form of purchases of pari-mutuel tickets or upon\nsuch tickets, on pari-mutuel pools, on breaks, on dividends or payments\nmade to winning bettors, or on that part of the pari-mutuel pools or\nbreaks to be retained by quarter horse racing corporations or\nassociations under this section.\n 3. The sums paid by any corporation or association to the department\nof taxation and finance shall be determined by multiplying each\napplicable rate for total daily pools from on-track regular bets by the\npercentage that on-track regular bets is of the total on-track daily\npool and by multiplying each applicable rate for total daily pools on\non-track exotic bets by the percentage that exotic bets is of total\ndaily pool, then combining the two determined percentages and applying\nthe result to the appropriate level of the total daily pool from\non-track regular and exotic bets.\n