US Laws, Codes, Statutes & Cases

 
    §   229.   Disposition   of  pari-mutuel  pools  of  nonprofit  racing
  associations; percentage  payable  to  state  as  a  tax;  authority  of
  counties  or  certain  cities  to  impose  a tax. 1. (a) Every nonprofit
  racing association 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  nonprofit  racing
  association  of  between  twelve  to  seventeen  per centum of the total
  deposits in pools resulting from on-track regular bets, and fourteen  to
  twenty-one  percentum  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 nonprofit racing association 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  nonprofit  racing  association,  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 seven, 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 association 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  seven,  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  nonprofit  racing association or 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.
    * NB Effective until July 1, 2007
    * (b) Notwithstanding any provision of law to the contrary,  no  later
  than  five  days after the end of each calendar quarter commencing on or
  after July first, nineteen  hundred  eighty-six,  every  such  nonprofit
  racing  association  shall pay to the New York state thoroughbred racing
  capital investment  fund  an  amount  equal  to  fifty  percent  of  any
  compensation  which  such  association  received  during such quarter in
  consideration for (i) permission to have wagering conducted outside this
  state, but within the United States on races run by such association and
  (ii) the simulcasting outside this state, but within the  United  States
  of  races  run  by  such  association,  excluding  the  portion  of such
  compensation used or reserved for purses (including stakes, premiums and
  prizes) awarded to  horses  in  races  conducted  by  such  association.
  Provided,  however, that no compensation shall be payable to the fund in
  accordance with this paragraph from  the  permission  to  have  wagering
  conducted  outside  the  United  States  or  from  simulcasting of races
  outside the United States. To the  extent  that  such  nonprofit  racing
  association,  on account of loans previously made to it by such fund, is
  required to pay any principal  or  interest  to  such  fund  during  any
  calendar  quarter in which a payment is due under this paragraph, it may
  retain all or a portion of the payment due under this paragraph  to  the
  extent  necessary to offset depreciation and interest charges related to
  the loans and to pay such principal or interest to the fund; and to  the
  extent that all or any portion of any payment due in accordance with the
  provisions of this paragraph is not necessary to offset depreciation and
  interest  charges  and to pay for principal or interest due to such fund
  on account of loans previously made to such association  by  such  fund,
  such  portion  of  this  payment  shall  be  made  to  such  fund  as  a
  supplemental franchise fee for the privilege of conducting  thoroughbred
  racing and pari-mutuel betting in this state.
    * NB Effective July 1, 2007
    * (c)  No  later than five days after the end of each calendar quarter
  commencing on or after July first,  nineteen  hundred  eighty-six  every
  such  non-profit  racing  association  shall  pay  to the New York state
  thoroughbred racing capital investment fund an  amount  equal  to  fifty
  percent   of   any  compensation  which  such  association  received  in
  consideration for the simulcasting within New York state of races run by
  such  association  to  other   thoroughbred   or   standardbred   racing
  associations    or   corporations,   or   regional   off-track   betting
  corporations,  excluding  the  portion  of  such  compensation  used  or
  reserved  for  purses (including stakes, premiums and prizes) awarded to
  horses in races conducted by  such  association.  The  payments  due  in
  accordance  with  the provisions of this paragraph shall be made to such
  fund as a supplemental franchise fee for  the  privilege  of  conducting
  thoroughbred racing and pari-mutuel betting in this state.
    * NB Effective July 1, 2007
    * (d) An amount equal to fifty per centum of any compensation received
  by  a  nonprofit  racing association or corporation from simulcasting or
  from wagering conducted outside the United States shall  be  distributed
  to purses.
    * NB Effective July 1, 2007
    (e)  The  pari-mutuel  tax  rate  authorized  by paragraph (a) of this
  subdivision  shall  be  effective  so  long  as  a   non-profit   racing
  association  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 non-profit racing association 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 non-profit racing 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 association.
    2. a. Subject to the provisions of subdivision three 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  nonprofit  racing association 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 association 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 said 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. If the  state  racing  and  wagering  board  shall  certify  for  a
  specified  number  of  years  amounts not exceeding five million dollars
  with respect to any one year for all nonprofit  racing  associations  as
  being  required  for  payment  of  the  cost  of  acquisition  of racing
  facilities, including real estate, or the stock of  corporations  owning
  such facilities, and the cost of erection, improvement or acquisition of
  seating  stands,  buildings  and other structures, grounds or track, the
  plans for which have been approved by  the  state  racing  and  wagering
  board, or for the payment of the cost of amortization of debt contracted
  with  the  approval  of  said  board  for  any  or all of such purposes,
  including in such cost  the  interest  on  such  debt  and  other  costs
  incurred  by  such  nonprofit  racing  associations  as a result of such
  amortization obligation, such  tax  by  the  state  shall  be  paid  and
  collected  with  respect  to  each year as to each such nonprofit racing
  association as follows: (1) nothing out of the first sums so retained up
  to an amount equal to the amount so certified for such year with respect
  to such association, which first sums so retained shall be  exempt  from
  such  tax  and  no  lien  or charge shall attach thereto in favor of the
  state for the payment of any tax; (2) one hundred per centum out of  the
  next  sums  so  retained  until  the  amount  paid  as  tax  equals  the
  percentages specified in paragraph (i) or (ii)  of  subdivision  one  of
  this  section,  as  the  case  may be, of the total deposits theretofore
  made; and thereafter (3) out of the remainder of the sums  so  retained,
  the percentages specified in paragraph (i) or (ii) of subdivision one of
  this section, as the case may be, of the total deposits thereafter made.
    As  a  condition  for  granting its approval of any such plans for the
  erection, improvement or acquisition of  seating  stands,  buildings  or
  other  structures, grounds or track, the state racing and wagering board
  shall,  wherever  practicable,  require  any   such   nonprofit   racing
  association  to  award any contracts therefor after and as the result of
  competitive bidding, and the board is hereby authorized  to  adopt  such
  rules  and  regulations  as  it deems necessary fully to effectuate this
  requirement.
    4. 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  nonprofit
  racing  associations  under  this section, except as provided in article
  two-B of the general city law, and as otherwise provided in sections two
  hundred twenty-two through seven hundred five of this chapter.
    5.   Notwithstanding  any  inconsistent  provision  of  this  chapter,
  whenever a non-profit racing association operates the Breeder's Cup Meet
  at one of its racing  facilities,  such  non-profit  racing  association
  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 non-profit racing association'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.