2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 4 - Quarter Horse Racing and Breeding › 418 - Disposition of Pari-Mutuel Pools.

§  418.  Disposition  of  pari-mutuel  pools.  1. Every association or
  corporation authorized under sections  two  hundred  twenty-two  through
  seven  hundred  five of this chapter to conduct pari-mutuel betting at a
  quarter horse race meeting on 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  seventeen
  percent  of  the total deposits in pools resulting from regular on-track
  bets and less nineteen percent of the total deposits in pools  resulting
  from multiple bets and less twenty-five percent of the total deposits in
  pools  resulting  from  exotic on-track bets, plus the breaks. "Multiple
  bet" or "multiple wager" shall mean a single bet or wager on two horses,
  evidenced by a single ticket and representing an interest  in  a  single
  betting  pool. "Exotic bet" or "exotic wager" shall mean a single bet or
  wager on three  or  more  horses,  evidenced  by  a  single  ticket  and
  representing  an  interest  in  a  single  betting  pool. The breaks for
  regular bets and multiple bets are hereby defined as the odd cents  over
  any  multiple  of  ten  or  for  exotic bets, over any multiple of fifty
  calculated on the basis of one dollar and otherwise payable to a patron.
  Of the sum so retained the applicable tax rates for regular  bets  shall
  be  three  percent;  the applicable tax rates for multiple bets shall be
  three and one-half percent; the applicable tax  rates  for  exotic  bets
  shall  be  eight  percent,  plus sixty-five percent of the amount of the
  breaks from on-track regular, multiple and exotic bets shall be paid  by
  such  corporation  or  association  to  the  department  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 quarter horse race  meetings
  held by such corporation or association, which tax is hereby levied, and
  the  balance  of  the retained percentage of such pool and of the breaks
  may be held by such corporation or  association  for  its  own  use  and
  purposes.  The payment of such state tax shall be made to the department
  of taxation and finance at such regular intervals as the  department  of
  taxation  and  finance may require, and shall be accompanied by a report
  under oath showing the total of all  such  contributions  together  with
  such  other  information  as  the department of taxation and finance 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 payment of the tax shall be payable in case any tax  imposed
  by  this section is not paid when due. If the department of taxation and
  finance determines that any moneys received under this section were paid
  in error, it may cause the same to be refunded without interest  out  of
  any  moneys  collected  thereunder,  provided an application therefor is
  filed with it 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
  department  of  taxation  and finance into the general fund of the state
  treasury. Ten percent of the breaks shall be paid to the New York  state
  quarter horse breeding and development fund.
2.  Except  as  may be authorized by the legislature, no county, city,
  town, village or other political subdivision of the  state  may  impose,
  levy  or  collect a tax on admission fees or tax on 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  quarter  horse  racing  corporations  or
  associations under this section.
3. The sums paid by any corporation or association to  the  department
  of  taxation  and  finance  shall  be  determined  by  multiplying  each

  applicable rate for total daily pools from on-track regular bets by  the
  percentage  that  on-track  regular  bets is of the total on-track daily
  pool and by multiplying each applicable rate for total  daily  pools  on
  on-track  exotic  bets  by  the  percentage that exotic bets is of total
  daily pool, then combining the two determined percentages  and  applying
  the  result  to  the  appropriate  level  of  the  total daily pool from
  on-track regular and exotic bets.