2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 2 - 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
are  presented  for payment before April first of the year following the
year of their purchase, less an amount that  shall  be  established  and
retained  by  such franchised corporation of between twelve to seventeen
percent of the total deposits in pools resulting from  on-track  regular
bets,  and fourteen to twenty-one percent of the total deposits in pools
resulting from on-track multiple bets and fifteen to twenty-five percent
of the total deposits in pools resulting from on-track exotic  bets  and
fifteen  to  thirty-six percent 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 commission.
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 percent
of regular bets and four percent of multiple bets plus twenty percent of
the  breaks;  for  exotic  wagers seven and one-half percent plus twenty
percent of the breaks, and for super  exotic  bets  seven  and  one-half
percent plus fifty percent of the breaks.
For  the  period  April  first,  two  thousand  one  through  December
thirty-first, two thousand twenty-five, such tax on all wagers shall  be
one and six-tenths percent, plus, in each such period, twenty percent of
the  breaks.  Payment  to  the  New York state thoroughbred breeding and
development fund by such franchised corporation shall be one-half of one
percent  of  total  daily  on-track  pari-mutuel  pools  resulting  from
regular, multiple and exotic bets and three percent of super exotic bets
and  for  the  period  April  first,  two  thousand one through December
thirty-first,  two  thousand  twenty-five,   such   payment   shall   be
seven-tenths of one percent of regular, multiple and exotic pools.
(b) An amount equal to fifty percent 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 commission.
(c) An amount equal to fifty percent of any compensation  received  by
the  franchised corporation from simulcasting or from wagering conducted
outside the United States shall be distributed to purses.
(d) (i) The pari-mutuel tax rate authorized by paragraph (a)  of  this
subdivision  shall  be  effective  so  long  as a franchised corporation
notifies the commission 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 unless
otherwise  agreed  to  in  writing by the New York Thoroughbred Breeders
Inc., the New York thoroughbred horsemen's association  (or  such  other
entity  as  is  certified  and  approved pursuant to section two hundred
twenty-eight of this article) and approved by the commission. Not  later
than May first of each year that such pari-mutuel tax rate is effective,
the  commission  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 that the commission approves or because of
weather conditions that are unsafe  or  hazardous  that  the  commission
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  commission
gives  approval  shall  not  be construed as a failure to conduct a race
day. If the commission 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.
(ii)  Such  franchised  corporation  shall  pay to the commission as a
regulatory fee, which fee is hereby levied, six-tenths of one percent 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 five and ninety-four hundredths percent  of  the
total  pools resulting from on-track regular bets and an amount equal to
five and ninety-four hundredths percent of  the  total  pools  resulting
from  on-track multiple and exotic bets, and twelve percent 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. Any portion  of  such  percent
not  so used during any year shall be so used during the following year,
failing which such portion 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 such  portion  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.