§ 527 — Disposition of off-track pools; state tax

§ 527. Disposition of off-track pools; state tax. Each regional\ncorporation conducting off-track betting shall distribute all sums\ndeposited in any pari-mutuel pool through such corporation to the\nholders of winning tickets therein, providing such tickets be presented\nfor payment prior to April first of the year following the year of their\npurchase, less an amount that it shall retain at the same rate\nestablished by the track accepting wagers from each such regional\ncorporation.\n 1. The disposition of the retained commission from pools resulting\nfrom regular, multiple or exotic bets, as the case may be, whether\nplaced on races run within a region or outside a region, conducted by\nracing corporations, harness racing associations or corporations,\nquarter horse racing associations or corporations or races run outside\nthe state shall be governed by the tables in paragraphs a and b of this\nsubdivision. The rate denominated "state tax" shall represent the rate\nof a reasonable tax imposed upon the retained commission for the\nprivilege of conducting off-track pari-mutuel betting, which tax is\nhereby levied and shall be payable in the manner set forth in this\nsection. Each off-track betting corporation shall pay to the commission\nas a regulatory fee, which fee is hereby levied, six-tenths of one\npercent of the total daily pools of such corporation. Each corporation\nshall also pay twenty percent of the breaks derived from bets on harness\nraces and fifty percent of the breaks derived from bets on all other\nraces to the agriculture and New York State horse breeding and\ndevelopment fund and to the thoroughbred breeding and development fund,\nthe total of such payments to be apportioned fifty percent to each such\nfund. For the purposes of this section, the New York city, Suffolk,\nNassau, and the Catskill regions shall constitute a single region and\nany thoroughbred track located within the Capital District region shall\nbe deemed to be within such single region. A "regional meeting" shall\nrefer to either harness or thoroughbred meetings, or both, except that a\nfranchised corporation shall not be a regional track for the purpose of\nreceiving distributions from bets on thoroughbred races conducted by a\nthoroughbred track in the Catskill region conducting a mixed meeting.\nWith the exception of a harness racing association or corporation first\nlicensed to conduct pari-mutuel wagering at a track located in Tioga,\nSaratoga or Westchester county after January first, two thousand five,\nracing corporations first licensed to conduct pari-mutuel racing after\nJanuary first, nineteen hundred eighty-six or a harness racing\nassociation or corporation first licensed to conduct pari-mutuel\nwagering at a track located in Genesee County after January first, two\nthousand five, and quarter horse tracks shall not be "regional tracks";\nif there is more than one harness track within a region, such tracks\nshall evenly divide payments made pursuant to the tables in paragraphs a\nand b of this subdivision when neither track is running. In the event a\ntrack elects to reduce its retained percentage from any or all of its\npari-mutuel pools, the payments to the track holding the race and the\nregional track required by paragraphs a and b of this subdivision shall\nbe reduced in proportion to such reduction. Nothing in this section\nshall be construed to authorize the conduct of off-track betting\ncontrary to the provisions of section five hundred twenty-three of this\narticle.\n a. Regular and multiple bets:\n Track\n holding Regional State\n race track tax\nPools on races run by:\nFranchised corporations:\n in region;..................... 3.50 N/A .30\n out-region, during a regional\n meeting;....................... 1.00 2.50 .30\n out-region, no regional\n meeting;....................... 1.75 1.75 .30\nRacing corporations\n in special\n betting district:\n in-special betting district;... 3.80 N/A 1.00\n out-district, during a regional\n meeting;....................... 1.00 2.80 1.00\n out-district, no regional\n meeting;....................... 1.90 1.90 1.00\nHarness racing associations or\n corporations within Suffolk,\n Nassau, or Catskill regions:\n in region;..................... 4.00 N/A .70\n out-region, during a regional\n meeting;....................... 1.00 3.00 .70\n out-region, no regional\n meeting;....................... 2.00 2.00 .70\nHarness racing associations or\n corporations:\n in-special betting\n district;...................... 4.00 N/A .50\n out-district, during a\n regional meeting;.............. 1.00 3.00 .50\n out-district, no regional\n meeting;....................... 2.00 2.00 .50\nOther harness racing associations\n or corporations:\n in region;..................... 4.00 N/A .50\n out-region, during a regional\n meeting;....................... 1.00 3.00 .50\n out-region, no regional\n meeting;....................... 2.00 2.00 .50\nQuarter horse racing associations\n or corporations;............... 3.50 N/A 1.10\nOut-of-state tracks:............. 3.50 divided 1.10\n pursuant to\n paragraph\n g of this\n subdivision\n b. Exotic bets:\n Track\n holding Regional State\n race track tax\nPools on races run by:\nFranchised corporations:\n in region;..................... 6.50 N/A 1.30\n out-region, during a regional\n meeting;....................... 2.00 4.50 1.30\n out-region, no regional\n meeting;....................... 3.25 3.25 1.30\nRacing corporations\n in special\n betting district:\n in-special betting districts;.. 6.80 N/A 3.00\n out-district, during a regional\n meeting;....................... 2.00 4.80 3.00\n out-district, no regional\n meeting;....................... 3.40 3.40 3.00\nHarness racing associations or\n corporations within Suffolk,\n Nassau, or Catskill\n regions:\n in region;..................... 7.00 N/A 2.70\n out-region, during a regional\n meeting;....................... 2.00 5.00 2.70\n out-region, no regional\n meeting;....................... 3.50 3.50 2.70\nHarness racing associations\n or corporations:\n in-special betting\n district;...................... 7.00 N/A 2.50\n out-district, during a\n regional meeting;.............. 2.00 5.00 2.50\n out-district, no regional\n meeting;....................... 3.50 3.50 2.50\nOther harness racing associa-\n tions or corporations:\n in-region;..................... 7.00 N/A 2.50\n out-region, during a\n regional meeting;.............. 2.00 5.00 2.50\n out-region, no regional\n meeting;....................... 3.50 3.50 2.50\nQuarter horse racing associa-\n tions or corporations;......... 6.50 N/A 3.10\nOut-of-state tracks:............. 6.50 divided 3.10\n pursuant to\n paragraph\n g of this\n subdivision\n c. Super Exotic Bets:\n Track\n holding Regional State\n race track tax\nPools on races run by:\nFranchised corporations:\n in region;..................... 12.00 N/A 3.50\n out-region, during a regional\n meeting;....................... 3.00 10.00 2.50\n out-region, no regional\n meeting;....................... 6.00 6.00 3.50\nRacing corporations\n in special\n betting district:\n in-special betting districts;.. 12.00 N/A 3.50\n out-district, during a regional\n meeting;....................... 3.00 10.00 2.50\n out-district, no regional\n meeting;....................... 6.00 6.00 3.50\nHarness racing associations or\n corporations within Suffolk,\n Nassau, or Catskill regions:\n in-region;..................... 12.00 N/A 3.50\n out-region, during a regional\n meeting;....................... 3.00 10.00 2.50\n out-region, no regional\n meeting;....................... 6.00 6.00 3.50\nHarness racing associations\n or corporations:\n in-special betting\n district;...................... 12.00 N/A 3.50\n out-district, during a\n regional meeting;.............. 3.00 10.00 2.50\n out-district, no regional\n meeting;....................... 6.00 6.00 3.50\nOther harness racing associations\n or corporations:\n in-region;..................... 12.00 N/A 3.50\n out-region, during a\n regional meeting;.............. 3.00 10.00 2.50\n out-region, no regional\n meeting;....................... 6.00 6.00 3.50\n d. For the portion of the Western region included within a\nthoroughbred special betting district and not within a harness special\nbetting district, when no thoroughbred race meeting is conducted by a\nracing corporation located within such thoroughbred special district,\nthe distribution of the retained commission to "regional tracks" by such\nregional corporation derived from wagers placed within such special\nbetting district shall be divided as follows:\n (i) when a harness corporation located in such district is conducting\na meet the full amount to such harness corporation; and when a harness\ncorporation in the region but not located in such district is conducting\na meet, forty percent to the thoroughbred racing corporation and sixty\npercent to the harness corporation conducting a meet;\n (ii) when no racing is being conducted, forty per centum to the\nthoroughbred racing corporation and the balance divided equally between\nthe harness racing corporations located in such region; and\n (iii) when no racing is being conducted and no more than one harness\nracing association is licensed during the calendar year to conduct a\nrace meeting, fifty per centum to the thoroughbred racing corporation\nand fifty per centum to the harness racing association located in such\nregion.\n e. For the portions of the Capital District, Catskill, Central and\nWestern regions included within a harness racing special betting\ndistrict, except those portions described in paragraph e of this\nsubdivision, the harness track located in such special district shall be\nthe "regional track" for the purposes of the distributions made pursuant\nto paragraphs a and b of this subdivision.\n f. For the portions of the Catskill, Central and Western regions\nincluded in both a thoroughbred special betting district and a harness\nspecial betting district, the distribution of the retained commission to\n"regional tracks" by such regional corporations derived from wagers\nplaced within such portions of such regions shall be divided as follows:\n (i) when a harness corporation located in the harness special betting\ndistrict is conducting a meet and no thoroughbred race meeting is being\nconducted by a racing corporation located in the thoroughbred special\nbetting district, the full amount to such harness association;\n (ii) when a thoroughbred corporation located in the thoroughbred\nspecial betting district is conducting a meet and no harness race\nmeeting is being conducted by a harness association located in the\nharness special betting district, the full amount to such thoroughbred\ncorporation;\n (iii) when no racing is being conducted the amount to be divided\nevenly between the thoroughbred track located in such thoroughbred\nspecial betting district and the harness track located in such harness\nspecial betting district.\n g. With respect to the amounts payable to track operators from the\nretained commission on pools resulting from thoroughbred or harness\nraces outside this state, the regional corporation shall first pay any\ncontractual obligation owed to the out-of-state track operator, or to\nanother state or entity thereof, as the case may be. The balance of such\namounts shall be divided as follows:\n (i) for the betting region composed of the New York city, Suffolk and\nNassau regions and the portion of the Catskill region outside a special\nbetting district: when both harness and thoroughbred meets are in\nprogress in such betting region, the balance to the association or\ncorporation holding the same type of meet as the out-of-state race; when\nonly a harness meet is in progress in such betting region, the balance\nto the harness track operator; when only a thoroughbred meet is in\nprogress in such betting region, the balance to the thoroughbred track\noperator; when no meet is in progress, fifty per centum of the balance\nto the franchised corporation and the remainder divided among harness\nracing corporations or associations within such betting region;\n (ii) for the Capital District region and the portion of the Western\nregion outside a special betting district: when a harness meet is in\nprogress in such region and a thoroughbred meet is in progress outside a\nspecial betting district, the balance to whichever operator is\nconducting the same type of meet as the out-of-state race; when no\nharness meet is in progress, the balance to the racing association\noutside a special betting district; and when no meet is in progress\nwithin such region and no thoroughbred meet is in progress outside a\nspecial betting district, fifty per centum of the balance to the racing\nassociation outside a special betting district and the remainder to the\nlicensed harness racing corporations or associations within such region;\n (iii) for the portion of the Western region within a thoroughbred\nspecial betting district but not within a harness special betting\ndistrict: when a harness meet and a thoroughbred meet are in progress\nwithin such region and the district, the balance to the association or\ncorporation conducting the same type of meet as the out-of-state or\nout-of-region race; when a harness meet is in progress in such region\nbut no thoroughbred meet is in progress in the special betting district,\nthe balance to the harness track operator within such region; when only\na thoroughbred meet is in progress in such betting region, the balance\nto the thoroughbred track operator; and when no meet is in progress\nwithin such region the balance is divided, forty per centum to the\nthoroughbred racing corporation within the district and the remainder\ndivided between the harness racing associations or corporations within\nthe region provided, however, that if no more than one harness racing\nassociation or corporation is licensed to conduct a race meeting, fifty\nper centum to the thoroughbred racing corporation within the district\nand fifty per centum to the licensed harness racing association within\nthe region;\n (iv) for the portions of the Capital District, Catskill, Central and\nWestern regions included in a harness special betting district: when a\nharness meeting is in progress in such harness special betting district\nand a thoroughbred meeting is in progress outside the thoroughbred\nspecial betting district, the balance to the association or corporation\nholding the same kind of race; when no harness meet is in progress, the\nbalance to the racing corporation holding a thoroughbred race meeting\noutside the thoroughbred special betting district; when a harness\nmeeting is in progress in the harness special betting district and no\nthoroughbred meeting is in progress outside the thoroughbred special\nbetting district, the balance to the harness track operating in such\nharness special betting district; when no harness meet is being held\nwithin such harness special betting district and no thoroughbred meet is\nbeing held outside the thoroughbred special betting district, fifty per\ncentum of such amount to the harness racing corporation in such harness\nspecial betting district and fifty per centum to the thoroughbred track\noperator outside the thoroughbred special betting district;\n (v) for the portions of the Catskill and Western regions included in\nboth a thoroughbred special betting district and a harness special\nbetting district: when a harness meet and a thoroughbred meet are in\nprogress within both such districts the balance to the association or\ncorporation conducting the same type of meet as the out-of-state race;\nwhen a harness meet is in progress but no thoroughbred meet the balance\nto the harness track operator within such district; when a thoroughbred\nmeet is in progress but no harness meet the balance to the thoroughbred\ntrack operator in the district; and when no meet is in progress the\nbalance to be divided evenly between the harness track operator in the\nharness special betting district and the thoroughbred operator located\nwithin the thoroughbred special betting district;\n (vi) notwithstanding any contrary provision contained in this section,\nthe portion of retained commissions from off-track pools distributable\nto the track holding the race shall be for regular and multiple bets:\nfive and three-quarters per centum and for exotic bets: seven and\nthree-quarters per centum for the three races commonly referred to as\nthe Triple Crown consisting of the Kentucky Derby, the Preakness and the\nBelmont Stakes, run respectively at Churchill Downs, Kentucky, at\nPimlico, Maryland and at Belmont Park, New York; additionally the same\ncommissions shall apply to the series of races known as the Breeders'\nCup and the portion distributable from retained commissions shall be\npaid to the Breeders' Cup, ltd. irrespective of whether the races are\nheld at a track within or without the state; provided, however, that as\na condition precedent to the obligation of a regional corporation to\nmake the foregoing distributions as required in this subparagraph with\nrespect to wagers on the Belmont Stakes, such regional corporation shall\nhave accepted wagers on at least one or both of the immediately\npreceding Kentucky Derby and Preakness races; and provided further that\nthe distributable portion of such retained commissions with respect to\nthe Belmont Stakes shall be deemed to include the additional amounts\npayable pursuant to the provisions of paragraph b of subdivision three\nof this section; and provided further, notwithstanding the foregoing\nprovisions of this subparagraph, that of the retained commissions\nresulting from off-track wagers placed in a special betting district on\nthe Belmont Stakes, the track holding the race shall receive one per\ncentum from regular and multiple bets and two per centum from exotic\nbets, and the thoroughbred track conducting racing within such district\nshall receive four and three-quarters per centum from regular and\nmultiple bets, and five and three-quarters per centum from exotic bets.\n 2. Payment of the state tax imposed by this section shall be made to\nthe commissioner by each such regional corporation on the last business\nday of each month and shall cover taxes due for the period from the\nsixteenth day of the preceding month through the fifteenth day of the\ncurrent month provided, however, that such payments required to be made\non March thirty-first shall include all taxes due and accruing through\nthe last full week of racing in March of the current year or as\notherwise determined by the commissioner and shall be accompanied by a\nreport under oath, showing such information as it may require. A penalty\nof five percent, and interest at the rate of one percent per month from\nthe date the report is required to be filed to the date of the payment\nof the tax, shall be payable in case any tax imposed by this section is\nnot paid when due. If the commissioner determines that any moneys\nreceived by the commissioner under this section were paid in error, the\ncommissioner may cause the same to be refunded without interest out of\nany moneys collected thereunder, provided an application therefor is\nfiled with the commissioner within one year from the time the erroneous\npayment is made. Such taxes, interest and penalties when collected,\nafter the deduction of refunds of taxes erroneously paid, shall be paid\nby the commissioner into the general fund of the state treasury.\n 3. a. Of the portion of retained commission on off-track pools\ndistributed to racing corporations, one-half shall be used exclusively\nfor the purpose of increasing purses, including stakes, premiums and\nprizes, awarded to horses in races conducted by such associations or\ncorporations and any portion of said fraction not so used during any\nyear shall be used during the following year, failing which it shall be\nreturned to the regional off-track betting corporations on or before\nApril first in the year following the year in which it is not so used to\nbe distributed prior to June first to participating local governments in\nthe same proportions as the distributions to such governments in the\nprior calendar year, provided, however, in a harness special betting\ndistrict the portion of retained commissions to be used for purses or\nthe methodology for calculating the amount to be used for purses may be\nspecified in a written contract between a harness racing association or\ncorporation and its representative horsemen's association.\n * b. In addition to any other amount required by this section, of the\nportion of commissions retained by a regional corporation, an amount\nequal to one and eighty-five hundredths percent of regular pools and an\namount equal to two and thirty-five hundredths percent of multiple pools\nand two and thirty-five hundredths percent of exotic pools derived from\nwagers on races conducted by a franchised corporation shall be paid to\nsuch corporation to be used exclusively for the purpose of increasing\npurses, including stakes, premiums and prizes. An additional two and\nsixty-five hundredths shall be paid to the regional harness track. When\nthere is no regional meeting, an amount equal to four and sixty-five\nhundredths shall be paid to such nonprofit racing association of which\ntwo and nine tenths shall be used exclusively for the purpose of\nincreasing purses, including stakes, premiums and prizes. An additional\none and eighty-five hundredths shall be paid to the regional harness\ntrack. In addition to any other amounts required to be paid to a\nfranchised corporation, for the period July twenty-first, nineteen\nhundred ninety-five through July twenty-fourth, two thousand one, an\nadditional one and twenty-five hundredths percent of multiple pools\nderived from wagers on races conducted by a franchised corporation shall\nbe paid to such association for its own use and purposes. Any portion of\nsaid amount not so used during any year shall be used during the\nfollowing year, failing which it shall be returned to the regional\ncorporation on or before April first in the year following the year in\nwhich it is not so used to be distributed to the participating local\ngovernments.\n * NB Effective until July 1, 2026\n * b. In addition to any other amount required by this section, of the\nportion of commissions retained by a regional corporation, an amount\nequal to one and one-quarter percent of regular and multiple pools and\nthree-quarters of one percent of exotic pools derived from wagers on\nraces conducted by a nonprofit racing association shall be paid to such\nnonprofit racing association to be used exclusively for the purpose of\nincreasing purses, including stakes, premiums and prizes. An additional\ntwo and sixty-five hundredths shall be paid to the regional harness\ntrack. When there is no regional meeting, an amount equal to four and\nsixty-five hundredths shall be paid to such nonprofit racing association\nof which two and nine-tenths shall be used exclusively for the purpose\nof increasing purses, including stakes, premiums and prizes. An\nadditional one and eighty-five hundredths shall be paid to the regional\nharness track. Any portion of said amount not so used during any year\nshall be used during the following year, failing which it shall be\nreturned to the regional corporation on or before April first in the\nyear following the year in which it is not so used to be distributed to\nthe participating local governments.\n * NB Effective July 1, 2026\n c. In addition to any other amount required by this section, of the\nportion of commissions retained by a regional corporation, an amount\nequal to one and one-tenth percent of regular and multiple pools and\nsix-tenths of one percent of exotic pools derived from wagers on races\nconducted by a thoroughbred racing corporation, licensed by the\ncommission, other than a franchised corporation, shall be paid to such\nthoroughbred racing corporation to be used exclusively for the purpose\nof increasing purses, including stakes, premiums and prizes. Any portion\nof such amount not so used during any year shall be used during the\nfollowing year, failing which such amount shall be returned to the\nregional corporation on or before April first in the year following the\nyear in which it is not so used to be distributed to the participating\nlocal governments.\n 4. a. Of the portion of retained commission on off-track pools\ndistributed to harness racing associations or corporations authorized to\nconduct racing in Westchester or Nassau county, one-half shall be used\nexclusively for the purpose of increasing purses, including stakes,\npremiums and prizes awarded to horses in races conducted by such\nassociations or corporations.\n b. The portion of retained commission on off-track pools distributed\nto other harness or quarter horse racing associations or corporations\nshall be deemed to be part of the on-track commission for purposes of\ncalculating purses, including stakes, premiums and prizes, awarded to\nhorses in races conducted by such associations or corporations.\n 5. a. One percent of daily pools derived from bets on harness races\nshall be paid to the agriculture and New York state breeding and\ndevelopment fund except that for super exotic betting pools such amount\nshall be three percent of such bets.\n b. An amount equal to one-half of one percent of total daily off-track\npari-mutuel pools resulting from regular, multiple and exotic bets and\nthree percent of super exotic bets on thoroughbred or steeplechase races\nshall be paid to the New York state thoroughbred breeding and\ndevelopment fund.\n c. From the total breaks retained by a regional corporation, an amount\nequal to ten percent of the breaks derived from bets on quarter horse\nraces shall be paid to the New York state quarter horse breeding and\ndevelopment fund.\n 5-a. Notwithstanding any other provision of law, a regional\ncorporation shall retain, in addition to those amounts described in the\nopening paragraph of this section, from regular and multiple bets on\nraces run at tracks electing to withhold pursuant to section two hundred\nthirty-seven or section three hundred nineteen of this chapter, an\namount equal to one percent of pools resulting from total wagering at\nsuch tracks, one-half of which shall be paid to such tracks or\nnon-profit county agricultural society, except that the full one percent\nshall be paid to a thoroughbred track in the Catskill region conducting\na mixed meeting, to be used exclusively for capital improvements\npursuant to sections two hundred thirty-seven and three hundred nineteen\nof this chapter and subject to the rules and regulations of the\ncommission and one-half to be retained by the regional corporation for\nits own corporate purposes.\n 6. The net amount remaining to each regional corporation after payment\nof taxes and distributions pursuant to this section and after payment of\noperating expenses and principal and interest on any obligations shall,\nin the case of the New York city off-track betting corporation, be\nretained by the corporation, and in the case of other regional\ncorporations shall accrue and be payable to participating counties\npursuant to section five hundred sixteen of this chapter; provided,\nhowever, that the New York city off-track betting corporation, after\npayment of all current taxes and distributions shall use such net amount\nto pay all liabilities of such corporation as of the effective date of\nthe chapter of the laws of two thousand eight which amended this\nsubdivision, and at such time as all liabilities have been paid such\ncorporation shall pay remaining amounts to the comptroller of the state\nof New York for deposit in the general fund of the state.\n 7. In addition to any other amount required by this section, of the\nportion of commissions retained by a regional corporation, an amount\nequal to one per centum of multiple pools derived from wagers on races\nconducted by a thoroughbred racing corporation, licensed by the board,\nother than a franchised corporation, shall be paid to such thoroughbred\nracing corporation and held by such corporation for its own use and\npurposes, except that an amount equal to one-half per centum shall be\nused exclusively for the purpose of increasing purses, including stakes,\npremiums and prizes, awarded to horses in races conducted by such\ncorporation. Any portion of said amount not so used during any year\nshall be used during the following year, failing which it shall be\nreturned to the regional corporation on or before April first in the\nyear following the year in which it is not so used to be distributed to\nthe participating local governments.\n 8. From the nineteen per centum of the total deposits in pools\nresulting from multiple bets on thoroughbred races outside this state,\ntwo per centum shall be paid to a franchised corporation to be used\nexclusively for the purpose of increasing purses, including stakes,\npremiums and prizes. Any portion of said amount not so used during any\nyear shall be used during the following year, failing which it shall be\nreturned to the regional corporation on or before April first in the\nyear following the year in which it is not so used to be distributed to\nthe participating local governments. Notwithstanding the provisions of\nsection fifteen of chapter three hundred sixty-three of the laws of\nnineteen hundred eighty-four, the provisions of this subdivision shall\nnot expire.\n