US Laws, Codes, Statutes & Cases

 
    §  228.  Disposition of pari-mutuel pools; percentage payable to state
  as a tax; authority of counties or certain cities to impose  a  tax.  1.
  Every  corporation  or  association  authorized  under  this  chapter to
  conduct pari-mutuel betting at a race  meeting  on  races  run  thereat,
  except  as  provided  in section two hundred twenty-nine of this chapter
  with respect to nonprofit racing associations, shall distribute all sums
  deposited in any pari-mutuel pool to  the  holders  of  winning  tickets
  therein,  providing  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 racing association or
  corporation of between fourteen  to  twenty  per  centum  of  the  total
  deposits  in pools resulting from regular on-track bets and less sixteen
  to twenty-two per centum of the total deposits in pools  resulting  from
  multiple on-track bets and less twenty to thirty per centum of the total
  deposits in pools resulting from exotic on-track bets and less twenty to
  thirty-six  per  centum  of  the total pools resulting from super exotic
  on-track 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 and breaks are hereby defined as the
  odd cents over any multiple of ten, or for exotic bets over any multiple
  of fifty, or for super exotic bets, over any multiple  of  one  hundred,
  calculated  on  the  basis  of one dollar, otherwise payable to a patron
  provided, however, that  effective  after  October  fifteenth,  nineteen
  hundred  ninety-four 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.  "Super  exotic  bets"  shall  have  the
  meaning  set  forth in section three hundred one of this chapter. Of the
  amount  so  retained  there  shall  be  paid  by  such  corporation   or
  association to the state tax commission as a reasonable tax by the state
  for  the privilege of conducting pari-mutuel betting on the races run at
  the race meeting held by such corporation or association, which  tax  is
  hereby  levied,  the  following  percentages  of  the  total  pool, plus
  fifty-five per centum of the breaks; the applicable  rates  for  regular
  and  multiple  bets shall be one and one-half per centum; the applicable
  rates for exotic bets shall be six and three-quarter per centum and  the
  applicable  rate  for super exotic bets shall be seven and three-quarter
  per centum. Effective on and after  September  first,  nineteen  hundred
  ninety-four,  the  applicable  tax  rate  shall be one per centum of all
  wagers, provided that,  an  amount  equal  to  one-half  the  difference
  between the taxation rate for on-track regular, multiple and exotic bets
  as of December thirty-first, nineteen hundred ninety-three and the rates
  on such on-track wagers as herein provided shall be used exclusively for
  purses. Provided, however, that for any twelve-month period beginning on
  April  first in nineteen hundred ninety and any year thereafter, each of
  the applicable rates set forth above shall be increased  by  one-quarter
  of one per centum on all on-track bets of any such racing association or
  corporation  that did not expend an amount equal to at least one-half of
  one per centum of its on-track bets  during  the  immediately  preceding
  calendar  year  for  enhancements  consisting of capital improvements as
  defined by section two hundred twenty-eight-a of this  article,  repairs
  to  its  physical plant, structures, and equipment used in its racing or
  wagering operations as certified by the state racing and wagering  board
  to  the  commissioner  of taxation and finance no later than eighty days
  after the close of such calendar year, and five special events  at  each
  track  in  each  calendar  year, not otherwise conducted in the ordinary
  course of business, the purpose of which shall be to encourage,  attract
  and  promote track attendance and encourage new and continued patronage,
  which events shall be approved by the  racing  and  wagering  board  for
  purposes  of  this  subdivision.  In  the  determination  of the amounts
  expended for such enhancements, the board may consider  the  immediately
  preceding  twelve  month  calendar  period  or  the  average  of the two
  immediately preceding twelve month calendar periods.  Provided  further,
  however,  that  of the portion of the increased amounts retained by such
  association or corporation above  those  amounts  retained  in  nineteen
  hundred  eighty-four, an amount of such increase shall be distributed to
  purses in the same proportion as commissions and purses were distributed
  during nineteen hundred eighty-four as  certified  by  the  board.  Such
  corporation  or  association  in  the second zone shall receive a credit
  against the daily tax imposed by this subdivision in an amount equal  to
  one per centum of total daily pools resulting from the simulcast of such
  corporation's  or association's races to licensed facilities operated by
  regional off-track betting corporations in accordance with  section  one
  thousand  eight of this chapter, provided however, that sixty per centum
  of the amount of such credit  shall  be  used  exclusively  to  increase
  purses for overnight races conducted by such corporation or association;
  and,  provided  further,  that in no event shall such total daily credit
  exceed one per centum of the total daily pool  of  such  association  or
  corporation.  Provided,  however,  that  on  and  after September first,
  nineteen hundred ninety-four such credit shall be four-tenths percent of
  total daily pools resulting from such simulcasting and that in no  event
  shall  such  total  daily  credit equal four-tenths percent of the total
  daily pool of such  association  or  corporation.  Such  corporation  or
  association  shall  pay  to the New York state thoroughbred breeding and
  development fund one-half of one per centum of the total daily  on-track
  pari-mutuel  pools from regular, multiple and exotic bets, and three per
  centum of super  exotic  bets.  The  corporation  or  association  shall
  receive  credit as a reduction of the tax by the state for the privilege
  of conducting pari-mutuel betting for the amounts, except  amounts  paid
  from super exotic betting pools, paid to the New York state thoroughbred
  breeding  and  development  fund  after  January first, nineteen hundred
  seventy-eight.
    Such corporation or association shall distribute to purses  an  amount
  equal  to  fifty  per  centum  of  any  compensation  it  receives  from
  simulcasting or from wagering conducted outside the United States.  Such
  corporation or association 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
  corporation or association.
    2.  The  balance  of  the  retained percentage of such pool and of the
  breaks shall be held by such corporation or association for its own  use
  and purposes, except that in addition to any payments to purses provided
  for  in  subdivision  one  of  this  section, an amount equal to two and
  one-half per centum of the total pools resulting from  on-track  regular
  bets  and  exotic  bets  and  an  amount equal to three and one-half per
  centum of the total pools resulting from on-track multiple bets  and  an
  amount equal to twelve per centum of on-track super exotic bets shall be
  used exclusively for the purpose of increasing purses (including stakes,
  premiums  and  prizes)  awarded  to  horses  in  races conducted by such
  corporation or association. Such two and one-half per centum  and  three
  and  one-half  per  centum shall be in addition to (i) four and one-half
  per centum of such total  pools  resulting  from  regular  and  multiple
  wagers  and  five  and one-half per centum of such total pools resulting
  from  exotic wagers, or (ii) the percentage of such total pools used for
  purses (including stakes, premiums and prizes) during the year  nineteen
  hundred  eighty-two,  whichever  is larger. Such percentage of the total
  pools mentioned in this subdivision shall be used for purses  (including
  stakes,  premiums  and  prizes)  in  races  hereafter  conducted by such
  corporation or association, and any portion not so used during any  year
  shall  be  so used during the following year, failing which such portion
  shall be  payable  to  the  commissioner  of  taxation  and  finance  as
  additional  tax. The racing and wagering board shall report annually, on
  or before July first, to the director of the budget, the chairman of the
  senate finance committee and the chairman of the assembly ways and means
  committee the extent to which such corporation or  association  utilized
  and  retained  percentages  and  breakage  for  operations, maintenance,
  capital improvements,  advertising  and  promotion,  administration  and
  general overhead and evaluate the effectiveness and make recommendations
  with  respect  to  the  application  of the reduced rates of taxation as
  provided for in subdivision one of this  section  in  accomplishing  the
  objectives  stated therein. Such report shall also specify the amount of
  such retained percentages and breakage used for investments not directly
  related to racing activities and such amounts used to declare  dividends
  or  other profit distributions, additions to capital stock, its sale and
  transfer and additions to retained earnings.  Such  reports  shall  also
  include  an  analysis  of any such agreements or proposals to conduct or
  otherwise expand wagers authorized under article ten of this chapter and
  present its conclusions with respect to the conduct  of  such  wagering,
  the  nature  of  such  proposals  and agreements, and recommendations to
  ensure the future maintenance of the intent of this article.
    2-a. Notwithstanding any  other  provision  of  this  section  to  the
  contrary and until January first, nineteen hundred ninety-five, a racing
  association  or corporation first licensed to conduct pari-mutuel racing
  after January first, nineteen  hundred  eighty-six,  shall  pay  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  meeting held by such corporation or association, which tax is
  hereby levied, one per centum of the total pools resulting  from  wagers
  on-track  on  such races, plus fifty-five per centum of the breaks. Such
  racing association or corporation shall retain  an  additional  two  per
  centum  from  total  pools  on such on-track wagers to be shared equally
  with the horsemen engaged in races run at such race meeting; the track's
  share thereof to be used for capital improvements  pursuant  to  section
  two  hundred  twenty-eight-a  of  this  article,  which section shall be
  deemed to have been elected by such corporation or association.
    3. Tax rates in event of a  failure  to  maintain  pari-mutuel  racing
  activity.  a. Notwithstanding any other provision of this section to the
  contrary, for any calendar year commencing on or  after  January  first,
  nineteen   hundred   eighty-nine,  in  which  a  racing  association  or
  corporation in zone two does not conduct a minimum number of pari-mutuel
  programs and pari-mutuel races at  its  facilities  equal  to  at  least
  ninety per centum of the programs and races so conducted during nineteen
  hundred  eighty-five or during nineteen hundred eighty-six, whichever is
  less, in lieu of the tax rates set forth  in  subdivision  one  of  this
  section  the  applicable  pari-mutuel  tax rates for such association or
  corporation with respect to on-track pari-mutuel  betting  pools  during
  such  year shall be increased by one per centum of regular, multiple and
  exotic betting pools. Notwithstanding the foregoing, no  increase  shall
  be  proposed  unless  such  corporation or association has been afforded
  notice and opportunity to be heard. The racing and wagering board  shall
  promulgate rules and regulations to implement the provisions relating to
  notice and hearing.
    b.   The  provisions  of  this  subdivision  shall  not  apply  to  an
  association or corporation for any calendar year  for  which  the  state
  racing  and wagering board certifies to the commissioner of taxation and
  finance:
    (i) by December fifteenth of the year immediately preceding such year,
  that such association or corporation has been assigned  for  such  year,
  from the programs and races it requested, at least the minimum number of
  programs and races prescribed in paragraph a of this subdivision, or, if
  fewer  than such number were assigned for such year, that the assignment
  of such lesser number was for good  cause  due  to  factors  beyond  the
  control  of  such  association or corporation or because the board found
  that it would be uneconomical or impractical  for  such  association  or
  corporation to be assigned the prescribed number; and
    (ii)  by  January  thirty-first  of the year immediately subsequent to
  such year, that such association or corporation did conduct such  number
  of  programs and races as were certified pursuant to subparagraph (i) of
  this paragraph, or if it failed to conduct such number that such failure
  was for good cause due to factors beyond  its  control  or  because  the
  board  found  it  uneconomical  or  impractical  for such association or
  corporation to conduct such a number.
    c. For any calendar year for which the state racing and wagering board
  does not certify pursuant to  the  provisions  of  subparagraph  (i)  of
  paragraph  b  of  this  subdivision  with  respect  to an association or
  corporation, the tax imposed  by  this  section  shall  be  computed  by
  substituting  the  provisions of paragraph a of this subdivision for the
  provisions of subdivision one of this section and shall pay the  tax  so
  computed   to   the  commissioner  of  taxation  and  finance.  In  such
  computation and payment, all other  provisions  of  this  section  shall
  apply  as if the provisions of this paragraph and of paragraph a of this
  subdivision had been incorporated in whole in subdivision  one  of  this
  section.
    d. For any calendar year for which the state racing and wagering board
  does  not  certify  pursuant  to  the provisions of subparagraph (ii) of
  paragraph b of this  subdivision  with  respect  to  an  association  or
  corporation,  the  tax required to be paid hereunder for such year shall
  be equal to the difference between the tax imposed pursuant to paragraph
  a of this subdivision and the tax imposed pursuant to the provisions  of
  subdivision  one  of  this  section  less one-half of such difference in
  recognition of purses which were required to be paid, plus an additional
  amount equal to ten per centum of such tax in the  event  of  a  willful
  failure  to comply with the provisions of subparagraph (ii) of paragraph
  b of this subdivision, and such association or corporation shall pay the
  tax so computed to the commissioner of taxation and finance on or before
  March fifteenth of the following year. Notwithstanding the provisions of
  this subdivision, in the event that upon appeal from  the  determination
  of  the  state racing and wagering board that the certification provided
  in paragraph b of this subdivision will  not  be  made,  it  is  finally
  determined  that  such  board was erroneous in failing to so certify and
  that any moneys received by the commissioner  of  taxation  and  finance
  under paragraph c of this subdivision were paid in error, the same shall
  be refunded at the rate of interest of six percent per annum. Payment of
  such  balance of tax due, or the anticipation of such payment, shall not
  affect the determination of purses in the year in which such tax  arises
  or  in  the year in which such payment is made nor shall such payment in
  any  other  manner  be  considered  in  any  statutory  or  contractural
  calculation of purse obligations.
    e.  Written  notice  of the certification of the board pursuant to the
  provisions of paragraph b of this subdivision  shall  be  given  by  the
  board to the appplicable association or corporation by the dates therein
  specified.  In  like manner, written notice that such certification will
  not be made shall be given by the board to the commissioner of  taxation
  and finance and the applicable association or corporation by such dates.
    4.  The payment of the state tax imposed by this section 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 the total of all such contributions,  together  with
  such  other  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 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 under this subdivision 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.
    5. 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 that
  part of the pari-mutuel  pools  or  breaks  to  be  retained  by  racing
  corporations  or  associations  under  this section, except as otherwise
  provided in this chapter.