NY Rac, Pari-Mut Wag & Breeding L § 527 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 5-A - Off-Track Pari-Mutuel Betting 527 - Disposition of Off-Track Pools; State Tax.

§  527.  Disposition  of  off-track  pools; state tax.   Each regional corporation conducting  off-track  betting  shall  distribute  all  sums deposited  in  any  pari-mutuel  pool  through  such  corporation to the holders of winning tickets therein, providing such tickets be  presented for payment prior to April first of the year following the year of their purchase,  less  an  amount  that  it  shall  retain  at  the  same rate established by the  track  accepting  wagers  from  each  such  regional corporation.   1.  The  disposition  of  the retained commission from pools resulting from regular, multiple or exotic bets,  as  the  case  may  be,  whether placed  on  races  run within a region or outside a region, conducted by racing  corporations,  harness  racing  associations  or   corporations, quarter  horse  racing associations or corporations or races run outside the state shall be governed by the tables in paragraphs a and b of  this subdivision.  The  rate denominated "state tax" shall represent the rate of a reasonable  tax  imposed  upon  the  retained  commission  for  the privilege  of  conducting  off-track  pari-mutuel  betting, which tax is hereby levied and shall be payable in  the  manner  set  forth  in  this section.  Each off-track betting corporation shall pay to the commission as a regulatory fee, which fee  is  hereby  levied,  six-tenths  of  one percent  of  the total daily pools of such corporation. Each corporation shall also pay twenty percent of the breaks derived from bets on harness races and fifty percent of the breaks derived from  bets  on  all  other races  to  the  agriculture  and  New  York  State  horse  breeding  and development fund and to the thoroughbred breeding and development  fund, the  total of such payments to be apportioned fifty percent to each such fund. For the purposes of this section,  the  New  York  city,  Suffolk, Nassau,  and  the  Catskill regions shall constitute a single region and any thoroughbred track located within the Capital District region  shall be  deemed  to  be within such single region. A "regional meeting" shall refer to either harness or thoroughbred meetings, or both, except that a franchised corporation shall not be a regional track for the purpose  of receiving  distributions  from bets on thoroughbred races conducted by a thoroughbred track in the Catskill region conducting  a  mixed  meeting. With  the exception of a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track  located  in  Tioga, Saratoga  or  Westchester county after January first, two thousand five, racing corporations first licensed to conduct pari-mutuel  racing  after January   first,   nineteen  hundred  eighty-six  or  a  harness  racing association  or  corporation  first  licensed  to  conduct   pari-mutuel wagering  at  a track located in Genesee County after January first, two thousand five, and quarter horse tracks shall not be "regional  tracks"; if  there  is  more  than one harness track within a region, such tracks shall evenly divide payments made pursuant to the tables in paragraphs a and b of this subdivision when neither track is running. In the event  a track  elects  to  reduce its retained percentage from any or all of its pari-mutuel pools, the payments to the track holding the  race  and  the regional  track required by paragraphs a and b of this subdivision shall be reduced in proportion to such  reduction.  Nothing  in  this  section shall  be  construed  to  authorize  the  conduct  of  off-track betting contrary to the provisions of section five hundred twenty-three of  this article.    a. Regular and multiple bets:                                        Track                                       holding   Regional     State                                        race       track       tax Pools on races run by:  Franchised corporations:   in region;.....................      3.50       N/A         .30   out-region, during a regional   meeting;.......................      1.00       2.50        .30   out-region, no regional   meeting;.......................      1.75       1.75        .30 Racing corporations   in special   betting district:   in-special betting district;...      3.80       N/A        1.00   out-district, during a regional   meeting;.......................      1.00       2.80       1.00   out-district, no regional   meeting;.......................      1.90       1.90       1.00 Harness racing associations or   corporations within Suffolk,   Nassau, or Catskill regions:   in region;.....................      4.00       N/A         .70   out-region, during a regional   meeting;.......................      1.00       3.00        .70   out-region, no regional   meeting;.......................      2.00       2.00        .70 Harness racing associations or   corporations:   in-special betting   district;......................      4.00       N/A         .50   out-district, during a   regional meeting;..............      1.00       3.00        .50   out-district, no regional   meeting;.......................      2.00       2.00        .50 Other harness racing associations   or corporations:   in region;.....................      4.00       N/A         .50   out-region, during a regional   meeting;.......................      1.00       3.00        .50   out-region, no regional   meeting;.......................      2.00       2.00        .50 Quarter horse racing associations   or corporations;...............      3.50       N/A        1.10 Out-of-state tracks:.............      3.50 divided          1.10                                        pursuant to                                        paragraph                                        g of this                                        subdivision    b. Exotic bets:                                        Track                                       holding   Regional     State                                        race       track       tax Pools on races run by:  Franchised corporations:   in region;.....................      6.50       N/A        1.30   out-region, during a regional   meeting;.......................      2.00       4.50       1.30   out-region, no regional   meeting;.......................      3.25       3.25       1.30  Racing corporations   in special   betting district:   in-special betting districts;..      6.80       N/A        3.00   out-district, during a regional   meeting;.......................      2.00       4.80       3.00   out-district, no regional   meeting;.......................      3.40       3.40       3.00 Harness racing associations or   corporations within Suffolk,   Nassau, or Catskill   regions:   in region;.....................      7.00       N/A        2.70   out-region, during a regional   meeting;.......................      2.00       5.00       2.70   out-region, no regional   meeting;.......................      3.50       3.50       2.70 Harness racing associations   or corporations:   in-special betting   district;......................      7.00       N/A        2.50   out-district, during a   regional meeting;..............      2.00       5.00       2.50   out-district, no regional   meeting;.......................      3.50       3.50       2.50 Other harness racing associa-   tions or corporations:   in-region;.....................      7.00       N/A        2.50   out-region, during a   regional meeting;..............      2.00       5.00       2.50   out-region, no regional   meeting;.......................      3.50       3.50       2.50 Quarter horse racing associa-   tions or corporations;.........      6.50       N/A        3.10 Out-of-state tracks:.............      6.50 divided          3.10                                        pursuant to                                        paragraph                                        g of this                                        subdivision    c. Super Exotic Bets:                                        Track                                       holding   Regional     State                                        race       track       tax Pools on races run by:  Franchised corporations:   in region;.....................     12.00       N/A        3.50   out-region, during a regional   meeting;.......................      3.00      10.00       2.50   out-region, no regional   meeting;.......................      6.00       6.00       3.50 Racing corporations   in special   betting district:   in-special betting districts;..     12.00       N/A        3.50   out-district, during a regional   meeting;.......................      3.00      10.00       2.50    out-district, no regional   meeting;.......................      6.00       6.00       3.50 Harness racing associations or   corporations within Suffolk,   Nassau, or Catskill regions:   in-region;.....................     12.00       N/A        3.50   out-region, during a regional   meeting;.......................      3.00      10.00       2.50   out-region, no regional   meeting;.......................      6.00       6.00       3.50 Harness racing associations   or corporations:   in-special betting   district;......................     12.00       N/A        3.50   out-district, during a   regional meeting;..............      3.00      10.00       2.50   out-district, no regional   meeting;.......................      6.00       6.00       3.50 Other harness racing associations   or corporations:   in-region;.....................     12.00       N/A        3.50   out-region, during a   regional meeting;..............      3.00      10.00       2.50   out-region, no regional   meeting;.......................      6.00       6.00       3.50    d.   For   the  portion  of  the  Western  region  included  within  a thoroughbred special betting district and not within a  harness  special betting  district,  when  no thoroughbred race meeting is conducted by a racing corporation located within such  thoroughbred  special  district, the distribution of the retained commission to "regional tracks" by such regional  corporation  derived  from  wagers  placed within such special betting district shall be divided as follows:  (i) when a harness corporation located in such district is  conducting a  meet  the full amount to such harness corporation; and when a harness corporation in the region but not located in such district is conducting a meet, forty percent to the thoroughbred racing corporation  and  sixty percent to the harness corporation conducting a meet;  (ii)  when  no  racing  is  being  conducted,  forty per centum to the thoroughbred racing corporation and the balance divided equally  between the harness racing corporations located in such region; and  (iii)  when  no racing is being conducted and no more than one harness racing association is licensed during the calendar  year  to  conduct  a race  meeting,  fifty  per centum to the thoroughbred racing corporation and fifty per centum to the harness racing association located  in  such region.   e.  For  the  portions  of the Capital District, Catskill, Central and Western  regions  included  within  a  harness  racing  special  betting district,  except  those  portions  described  in  paragraph  e  of this subdivision, the harness track located in such special district shall be the "regional track" for the purposes of the distributions made pursuant to paragraphs a and b of this subdivision.   f. For the portions of  the  Catskill,  Central  and  Western  regions included  in  both a thoroughbred special betting district and a harness special betting district, the distribution of the retained commission to "regional tracks" by such  regional  corporations  derived  from  wagers placed within such portions of such regions shall be divided as follows:  (i)  when a harness corporation located in the harness special betting district is conducting a meet and no thoroughbred race meeting is  being conducted  by  a  racing corporation located in the thoroughbred special betting district, the full amount to such harness association;  (ii)  when  a  thoroughbred  corporation  located  in the thoroughbred special betting district is  conducting  a  meet  and  no  harness  race meeting  is  being  conducted  by  a  harness association located in the harness special betting district, the full amount to  such  thoroughbred corporation;  (iii)  when  no  racing  is  being  conducted the amount to be divided evenly between the  thoroughbred  track  located  in  such  thoroughbred special  betting  district and the harness track located in such harness special betting district.   g. With respect to the amounts payable to  track  operators  from  the retained  commission  on  pools  resulting  from thoroughbred or harness races outside this state, the regional corporation shall first  pay  any contractual  obligation  owed  to the out-of-state track operator, or to another state or entity thereof, as the case may be. The balance of such amounts shall be divided as follows:  (i) for the betting region composed of the New York city, Suffolk  and Nassau  regions and the portion of the Catskill region outside a special betting district: when  both  harness  and  thoroughbred  meets  are  in progress  in  such  betting  region,  the  balance to the association or corporation holding the same type of meet as the out-of-state race; when only a harness meet is in progress in such betting region,  the  balance to  the  harness  track  operator;  when  only a thoroughbred meet is in progress in such betting region, the balance to the  thoroughbred  track operator;  when  no meet is in progress, fifty per centum of the balance to the franchised corporation and the remainder  divided  among  harness racing corporations or associations within such betting region;  (ii)  for  the  Capital District region and the portion of the Western region outside a special betting district: when a  harness  meet  is  in progress in such region and a thoroughbred meet is in progress outside a special   betting   district,  the  balance  to  whichever  operator  is conducting the same type of meet  as  the  out-of-state  race;  when  no harness  meet  is  in  progress,  the  balance to the racing association outside a special betting district; and when  no  meet  is  in  progress within  such  region  and  no thoroughbred meet is in progress outside a special betting district, fifty per centum of the balance to the  racing association  outside a special betting district and the remainder to the licensed harness racing corporations or associations within such region;  (iii) for the portion of the  Western  region  within  a  thoroughbred special  betting  district  but  not  within  a  harness special betting district: when a harness meet and a thoroughbred meet  are  in  progress within  such  region and the district, the balance to the association or corporation conducting the same type of  meet  as  the  out-of-state  or out-of-region  race;  when  a harness meet is in progress in such region but no thoroughbred meet is in progress in the special betting district, the balance to the harness track operator within such region; when  only a  thoroughbred  meet is in progress in such betting region, the balance to the thoroughbred track operator; and when  no  meet  is  in  progress within  such  region  the  balance  is  divided, forty per centum to the thoroughbred racing corporation within the district  and  the  remainder divided  between  the harness racing associations or corporations within the region provided, however, that if no more than  one  harness  racing association  or corporation is licensed to conduct a race meeting, fifty per centum to the thoroughbred racing corporation  within  the  district  and  fifty  per centum to the licensed harness racing association within the region;  (iv)  for  the portions of the Capital District, Catskill, Central and Western regions included in a harness special betting district:  when  a harness  meeting is in progress in such harness special betting district and a thoroughbred meeting  is  in  progress  outside  the  thoroughbred special  betting district, the balance to the association or corporation holding the same kind of race; when no harness meet is in progress,  the balance  to  the  racing corporation holding a thoroughbred race meeting outside the  thoroughbred  special  betting  district;  when  a  harness meeting  is  in  progress in the harness special betting district and no thoroughbred meeting is in progress  outside  the  thoroughbred  special betting  district,  the  balance  to the harness track operating in such harness special betting district; when no harness  meet  is  being  held within such harness special betting district and no thoroughbred meet is being  held outside the thoroughbred special betting district, fifty per centum of such amount to the harness racing corporation in such  harness special  betting district and fifty per centum to the thoroughbred track operator outside the thoroughbred special betting district;  (v) for the portions of the Catskill and Western regions  included  in both  a  thoroughbred  special  betting  district  and a harness special betting district: when a harness meet and a  thoroughbred  meet  are  in progress  within  both  such districts the balance to the association or corporation conducting the same type of meet as the  out-of-state  race; when  a harness meet is in progress but no thoroughbred meet the balance to the harness track operator within such district; when a  thoroughbred meet  is in progress but no harness meet the balance to the thoroughbred track operator in the district; and when no  meet  is  in  progress  the balance  to  be divided evenly between the harness track operator in the harness special betting district and the thoroughbred  operator  located within the thoroughbred special betting district;  (vi) notwithstanding any contrary provision contained in this section, the  portion  of retained commissions from off-track pools distributable to the track holding the race shall be for regular  and  multiple  bets: five  and  three-quarters  per  centum  and  for  exotic bets: seven and three-quarters per centum for the three races commonly  referred  to  as the Triple Crown consisting of the Kentucky Derby, the Preakness and the Belmont  Stakes,  run  respectively  at  Churchill  Downs,  Kentucky, at Pimlico, Maryland and at Belmont Park, New York; additionally  the  same commissions  shall  apply  to the series of races known as the Breeders' Cup and the portion distributable from  retained  commissions  shall  be paid  to  the  Breeders' Cup, ltd. irrespective of whether the races are held at a track within or without the state; provided, however, that  as a  condition  precedent  to  the obligation of a regional corporation to make the foregoing distributions as required in this  subparagraph  with respect to wagers on the Belmont Stakes, such regional corporation shall have  accepted  wagers  on  at  least  one  or  both  of the immediately preceding Kentucky Derby and Preakness races; and provided further  that the  distributable  portion of such retained commissions with respect to the Belmont Stakes shall be deemed to  include  the  additional  amounts payable  pursuant  to the provisions of paragraph b of subdivision three of this section; and provided  further,  notwithstanding  the  foregoing provisions  of  this  subparagraph,  that  of  the  retained commissions resulting from off-track wagers placed in a special betting district  on the  Belmont  Stakes,  the  track holding the race shall receive one per centum from regular and multiple bets and two  per  centum  from  exotic bets,  and the thoroughbred track conducting racing within such district  shall receive four  and  three-quarters  per  centum  from  regular  and multiple bets, and five and three-quarters per centum from exotic bets.   2.  Payment  of the state tax imposed by this section shall be made to the commissioner by each such regional corporation 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 it may require. A penalty of  five percent, and interest at the rate of one percent 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  is  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.   3.  a.  Of  the  portion  of  retained  commission  on off-track pools distributed to racing corporations, one-half shall be  used  exclusively for  the  purpose  of  increasing purses, including stakes, premiums and prizes, awarded to horses in races conducted  by  such  associations  or corporations  and  any  portion  of said fraction not so used during any year shall be used during the following year, failing which it shall  be returned  to  the  regional  off-track betting corporations on or before April first in the year following the year in which it is not so used to be distributed prior to June first to participating local governments in the same proportions as the distributions to  such  governments  in  the prior  calendar  year,  provided,  however, in a harness special betting district the portion of retained commissions to be used  for  purses  or the  methodology for calculating the amount to be used for purses may be specified in a written contract between a harness racing association  or corporation and its representative horsemen's association.   * b.  In addition to any other amount required by this section, of the portion of commissions retained by a  regional  corporation,  an  amount equal  to one and eighty-five hundredths percent of regular pools and an amount equal to two and thirty-five hundredths percent of multiple pools and two and thirty-five hundredths percent of exotic pools derived  from wagers  on  races conducted by a franchised corporation shall be paid to such corporation to be used exclusively for the  purpose  of  increasing purses,  including  stakes,  premiums  and prizes. An additional two and sixty-five hundredths shall be paid to the regional harness track.  When there  is  no  regional  meeting, an amount equal to four and sixty-five hundredths shall be paid to such nonprofit racing association  of  which two  and  nine  tenths  shall  be  used  exclusively  for the purpose of increasing purses, including stakes, premiums and prizes. An  additional one  and  eighty-five  hundredths  shall be paid to the regional harness track. In addition to any  other  amounts  required  to  be  paid  to  a franchised  corporation,  for  the  period  July  twenty-first, nineteen hundred ninety-five through July twenty-fourth,  two  thousand  one,  an additional  one  and  twenty-five  hundredths  percent of multiple pools derived from wagers on races conducted by a franchised corporation shall be paid to such association for its own use and purposes. Any portion of said amount not so used  during  any  year  shall  be  used  during  the  following  year,  failing  which  it  shall  be returned to the regional corporation on or before April first in the year following the  year  in which  it  is  not  so used to be distributed to the participating local governments.   * NB Effective until July 1, 2022   * b.  In addition to any other amount required by this section, of the portion of commissions retained by a  regional  corporation,  an  amount equal  to  one and one-quarter percent of regular and multiple pools and three-quarters of one percent of exotic pools  derived  from  wagers  on races  conducted by a nonprofit racing association shall be paid to such nonprofit racing association to be used exclusively for the  purpose  of increasing  purses, including stakes, premiums and prizes. An additional two and sixty-five hundredths shall be  paid  to  the  regional  harness track.  When  there  is no regional meeting, an amount equal to four and sixty-five hundredths shall be paid to such nonprofit racing association of which two and nine-tenths shall be used exclusively for  the  purpose of   increasing  purses,  including  stakes,  premiums  and  prizes.  An additional one and eighty-five hundredths shall be paid to the  regional harness  track.  Any  portion of said amount not so used during any year shall be used during the following  year,  failing  which  it  shall  be returned  to  the  regional  corporation on or before April first in the year following the year in which it is not so used to be distributed  to the participating local governments.   * NB Effective July 1, 2022   c.  In  addition  to any other amount required by this section, of the portion of commissions retained by a  regional  corporation,  an  amount equal  to  one  and  one-tenth percent of regular and multiple pools and six-tenths of one percent of exotic pools derived from wagers  on  races conducted   by  a  thoroughbred  racing  corporation,  licensed  by  the commission, other than a franchised corporation, shall be paid  to  such thoroughbred  racing  corporation to be used exclusively for the purpose of increasing purses, including stakes, premiums and prizes. Any portion of such amount not so used during any year  shall  be  used  during  the following  year,  failing  which  such  amount  shall be returned to the regional corporation on or before April first in the year following  the year  in  which it is not so used to be distributed to the participating local governments.   4. a. Of  the  portion  of  retained  commission  on  off-track  pools distributed to harness racing associations or corporations authorized to conduct  racing  in Westchester or Nassau county, one-half shall be used exclusively for the purpose  of  increasing  purses,  including  stakes, premiums  and  prizes  awarded  to  horses  in  races  conducted by such associations or corporations.   b. The portion of retained commission on off-track  pools  distributed to  other  harness  or quarter horse racing associations or corporations shall be deemed to be part of the on-track commission  for  purposes  of calculating  purses,  including  stakes, premiums and prizes, awarded to horses in races conducted by such associations or corporations.   5. a. One percent of daily pools derived from bets  on  harness  races shall  be  paid  to  the  agriculture  and  New  York state breeding and development fund except that for super exotic betting pools such  amount shall be three percent of such bets.   b. An amount equal to one-half of one percent of total daily off-track pari-mutuel  pools  resulting from regular, multiple and exotic bets and three percent of super exotic bets on thoroughbred or steeplechase races shall  be  paid  to  the  New  York  state  thoroughbred  breeding   and development fund.    c. From the total breaks retained by a regional corporation, an amount equal  to  ten  percent of the breaks derived from bets on quarter horse races shall be paid to the New York state  quarter  horse  breeding  and development fund.   5-a.   Notwithstanding   any   other  provision  of  law,  a  regional corporation shall retain, in addition to those amounts described in  the opening  paragraph  of  this  section, from regular and multiple bets on races run at tracks electing to withhold pursuant to section two hundred thirty-seven or section three  hundred  nineteen  of  this  chapter,  an amount  equal  to  one percent of pools resulting from total wagering at such tracks,  one-half  of  which  shall  be  paid  to  such  tracks  or non-profit county agricultural society, except that the full one percent shall  be paid to a thoroughbred track in the Catskill region conducting a mixed  meeting,  to  be  used  exclusively  for  capital  improvements pursuant to sections two hundred thirty-seven and three hundred nineteen of  this  chapter  and  subject  to  the  rules  and  regulations of the commission and one-half to be retained by the regional  corporation  for its own corporate purposes.   6. The net amount remaining to each regional corporation after payment of taxes and distributions pursuant to this section and after payment of operating  expenses and principal and interest on any obligations shall, in the case of the New  York  city  off-track  betting  corporation,  be retained  by  the  corporation,  and  in  the  case  of  other  regional corporations shall accrue  and  be  payable  to  participating  counties pursuant  to  section  five  hundred  sixteen of this chapter; provided, however, that the New York city  off-track  betting  corporation,  after payment of all current taxes and distributions shall use such net amount to  pay  all liabilities of such corporation as of the effective date of the chapter of the  laws  of  two  thousand  eight  which  amended  this subdivision,  and  at  such  time as all liabilities have been paid such corporation shall pay remaining amounts to the comptroller of the  state of New York for deposit in the general fund of the state.   7.  In  addition  to any other amount required by this section, of the portion of commissions retained by a  regional  corporation,  an  amount equal  to  one per centum of multiple pools derived from wagers on races conducted by a thoroughbred racing corporation, licensed by  the  board, other  than a franchised corporation, shall be paid to such thoroughbred racing corporation and held by such corporation  for  its  own  use  and purposes,  except  that  an amount equal to one-half per centum shall be used exclusively for the purpose of increasing purses, including stakes, premiums and prizes, awarded  to  horses  in  races  conducted  by  such corporation.  Any  portion  of  said  amount not so used during any year shall be used during the following  year,  failing  which  it  shall  be returned  to  the  regional  corporation on or before April first in the year following the year in which it is not so used to be distributed  to the participating local governments.   8.  From  the  nineteen  per  centum  of  the  total deposits in pools resulting from multiple bets on thoroughbred races outside  this  state, two  per  centum  shall  be  paid to a franchised corporation to be used exclusively for the purpose  of  increasing  purses,  including  stakes, premiums  and  prizes. Any portion of said amount not so used during any year shall be used during the following year, failing which it shall  be returned  to  the  regional  corporation on or before April first in the year following the year in which it is not so used to be distributed  to the  participating  local governments. Notwithstanding the provisions of section fifteen of chapter three hundred  sixty-three  of  the  laws  of nineteen  hundred  eighty-four, the provisions of this subdivision shall not expire.