§ 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.