2013 New York Consolidated Laws
PML - Racing, Pari-Mutuel Wagering and Breeding Law
Article 2 - (201 - 257) THOROUGHBRED RACING AND BREEDING
238 - Disposition of pari-mutuel pools of the franchised corporation; percentage payable to state as a tax; authority of counties or certain cities to impos

 
    § 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 be
  presented for payment before April first of the year following the  year
  of  their  purchase,  less  an  amount  which  shall  be established and
  retained by such franchised corporation of between twelve  to  seventeen
  per  centum  of  the  total  deposits  in  pools resulting from on-track
  regular bets, and  fourteen  to  twenty-one  per  centum  of  the  total
  deposits  in  pools resulting from on-track multiple bets and fifteen to
  twenty-five per centum of the total deposits  in  pools  resulting  from
  on-track  exotic  bets and fifteen to thirty-six per centum of the total
  deposits in pools resulting from on-track super exotic  bets,  plus  the
  breaks.  The  retention  rate  to be established is subject to the prior
  approval of the racing and wagering board. 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.  The
  breaks are hereby defined as the odd cents over any multiple of five for
  payoffs  greater  than one dollar five cents but less than five dollars,
  over any multiple of ten for payoffs greater than five dollars but  less
  than  twenty-five  dollars, over any multiple of twenty-five for payoffs
  greater than  twenty-five  dollars  but  less  than  two  hundred  fifty
  dollars,  or  over  any  multiple  of fifty for payoffs over two hundred
  fifty dollars. 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, the following percentages of the total pool for regular and
  multiple bets five per centum of regular bets and  four  per  centum  of
  multiple  bets  plus  twenty per centum of the breaks; for exotic wagers
  seven and one-half per centum plus twenty per centum of the breaks,  and
  for  super  exotic  bets  seven  and  one-half per centum plus fifty per
  centum of the breaks.  For  the  period  June  first,  nineteen  hundred
  ninety-five  through September ninth, nineteen hundred ninety-nine, such
  tax on regular wagers shall be three per centum and such tax on multiple
  wagers shall be two and one-half per centum, plus twenty per  centum  of
  the breaks. For the period September tenth, nineteen hundred ninety-nine
  through  March  thirty-first,  two  thousand one, such tax on all wagers
  shall be two and six-tenths per centum and for the period  April  first,
  two  thousand  one through December thirty-first, two thousand fourteen,
  such tax on all wagers shall be one and six-tenths per centum, plus,  in
  each  such  period,  twenty per centum of the breaks. Payment to the New
  York state thoroughbred breeding and development fund by such franchised
  corporation shall be one-half of one per centum of total daily  on-track
  pari-mutuel  pools  resulting from regular, multiple and exotic bets and
  three per centum of super exotic bets provided, however,  that  for  the
  period  September  tenth,  nineteen  hundred  ninety-nine  through March
  thirty-first, two thousand one, such payment shall be six-tenths of  one
  per  centum  of  regular,  multiple  and exotic pools and for the period
  April  first,  two  thousand  one  through  December  thirty-first,  two
  thousand  fourteen, such payment shall be seven-tenths of one per centum
  of such pools.

    (b) An amount equal to fifty per centum 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 state racing
  and wagering board.
    (c) An amount equal to fifty per centum of any  compensation  received
  by  the  franchised  corporation  from  simulcasting  or  from  wagering
  conducted outside the United States shall be distributed to purses.
    (d) The pari-mutuel tax rate  authorized  by  paragraph  (a)  of  this
  subdivision  shall  be  effective  so  long  as a franchised corporation
  notifies the racing and wagering board by August fifteenth of each  year
  that  such  pari-mutuel tax rate is effective of its intent to 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.
  Not  later than May first of each year that such pari-mutuel tax rate is
  effective, the racing and wagering board shall determine whether a  race
  meeting  at  Aqueduct  racetrack  consisted  of  the  number  of days as
  required by this paragraph. In determining  the  number  of  race  days,
  cancellation  of  a  race day because of an act of God, which the racing
  and wagering board approves or because of weather  conditions  that  are
  unsafe  or  hazardous which the racing and wagering board 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 racing and  wagering  board
  gives  approval  shall  not  be construed as a failure to conduct a race
  day. If the racing and wagering board determines that the number of days
  of racing as required by this  paragraph  have  not  occurred  then  the
  pari-mutuel  tax  rate in paragraph (a) of this subdivision shall revert
  to the pari-mutuel tax rates in effect prior to January first,  nineteen
  hundred ninety-five. Such franchised corporation shall pay to the racing
  and  wagering  board  as  a  regulatory fee, which fee is hereby levied,
  fifty  hundredths  of  one  per  centum  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 per centum and interest at
  the rate of one per centum  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  and  of  the
  breaks  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 three per centum of the total pools resulting
  from on-track regular bets and an amount equal to four per centum of the
  total pools resulting from on-track multiple and exotic bets, and twelve
  per centum 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  provided,
  however, that during the period June first, nineteen hundred ninety-five
  through  September ninth, nineteen hundred ninety-nine, such amounts for
  on-track regular and on-track multiple bets shall be two and thirty-five
  hundredths per centum and five and one-half  per  centum,  respectively.
  During  the period September tenth, nineteen hundred ninety-nine through
  March thirty-first, two thousand one, such amounts for on-track regular,
  multiple and exotic bets shall be five and four  hundredths  per  centum
  and   for  the  period  April  first,  two  thousand  one  through  July
  twenty-fourth, two thousand one and after June thirtieth,  two  thousand
  four, such amount for such bets shall be five and ninety-four hundredths
  per  centum and on and after July twenty-fifth, two thousand one through
  June thirtieth, two thousand four, such amounts for  all  on-track  bets
  shall  be  five and forty hundredths per centum. Any portion of such per
  centum not so used during any year shall be so used during the following
  year,  failing  which  it  shall  be  payable  to  the  commissioner  as
  additional  tax. Such additional tax shall be payable on or before April
  first in the year following the year in which it is not so used and  the
  provisions  of  paragraph  a  of  this  subdivision  shall be applicable
  thereto except as to the time of payment.
    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.
    4.   Notwithstanding  any  inconsistent  provision  of  this  chapter,
  whenever the franchised corporation operates the Breeder's Cup  Meet  at
  one  of  its racing facilities, such franchised corporation shall not be
  required to pay to the department of taxation and  finance  pursuant  to
  this  section  the  pari-mutuel  tax  on  the  pari-mutuel pools of such
  franchised corporation's races during the Breeder's Cup  Meet.  For  the
  purposes  of  this  subdivision, the Breeder's Cup Meet shall consist of
  three days:  the day on which the Breeder's Cup races are conducted, the
  day preceding such races and the day subsequent to such races.