Section 318. Disposition of on-track pari-mutuel pools; harness races

1.
  Except as otherwise provided by law, every  association  or  corporation
  authorized  under  this  article  to  conduct  pari-mutuel  betting at a
  harness 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 prior to April
  first of the year following the year of their purchase, less  an  amount
  which  shall  be  established and retained by such racing association or
  corporation of between fourteen and  twenty  per  centum  of  the  total
  deposits   in  pools  resulting  from  regular  bets,  less  sixteen  to
  twenty-two per centum of the total  deposits  in  pools  resulting  from
  multiple bets, less twenty to thirty per centum of the total deposits in
  pools  resulting  from  exotic  bets,  and less twenty to thirty-six per
  centum of the total betting  deposits  in  pools  resulting  from  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 subdivision four of section three  hundred
  one of this article and "the breaks" are hereby defined as the odd cents
  over  any  multiple  of ten for regular and multiple bets, or for exotic
  bets, over any multiple of fifty, or for super  exotic  bets,  over  any
  multiple  of  one  hundred  calculated  on  the  basis of one dollar and
  otherwise payable to a patron, provided however,  that  effective  after
  October  fifteenth,  nineteen  hundred  ninety-four  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.
    a.  Of  the  sum  so retained from on-track pari-mutuel betting pools,
  such association or corporation authorized to operate in Westchester  or
  Nassau county: (i) shall pay to the commissioner of taxation and finance
  as  a reasonable tax for the privilege of conducting pari-mutuel betting
  at races run at race meetings held by such corporation or association, a
  tax, which is hereby levied, at the  following  rates:  of  total  daily
  on-track  pools  resulting  from  regular  bets,  one and six-tenths per
  centum; of the total daily on-track pools resulting from multiple  bets,
  one and thirty-five hundredths per centum; of total daily on-track pools
  resulting  from exotic bets, four and eighty-five hundredths per centum;
  and of total daily on-track pools  resulting  from  super  exotic  bets,
  seven  per  centum,  plus  fifty  per  centum  of  the breaks. Effective
  September  first,  nineteen  hundred  ninety-four,  such  tax  shall  be
  one-half   of  one  per  centum  of  all  wagers.  Such  association  or
  corporation shall receive credit as a reduction of the daily tax by  the
  state  for  the  privilege  of conducting pari-mutuel betting of amounts
  equal to one and one-half per centum of total daily pools resulting from
  the simulcast of such association's or corporation's races  to  licensed
  facilities  operated  by  regional  off-track  betting  corporations  in
  accordance with section one thousand eight of  this  chapter;  provided,
  however,  that  in  no event shall total daily credit exceed one and one
  half per  centum  of  the  total  daily  pool  of  such  association  or
  corporation.  Provided,  however,  that  on  and  after September first,
  nineteen hundred ninety-four, such credit shall be  four-tenths  percent
  of  total  daily  pools  resulting from such simulcasting and that in no

  event shall such total daily credit exceed four-tenths  percent  of  the
  total  daily pool of such association or corporation. An amount equal to
  fifty per centum of such  credit  shall  be  used  to  increase  purses.
  Provided,  however,  that for any twelve month period beginning on April
  first in nineteen hundred ninety and any year thereafter,  each  of  the
  applicable  rates  set forth above shall be increased by one-half of one
  per centum on all on-track  bets  of  any  such  racing  association  or
  corporation  that did not expend an amount equal to at least one-half of
  one per centum of its on-track bets  during  the  immediately  preceding
  calendar  year  for  enhancements  consisting of capital improvements as
  defined by section three hundred nineteen of this  chapter,  repairs  to
  its  physical  plant,  structures,  and  equipment used in its racing or
  wagering operations, as certified by the state racing and wagering board
  to the commissioner of taxation and finance no later  than  eighty  days
  after  the  close of such calendar year, and five special events at each
  track in each calendar year, not otherwise  conducted  in  the  ordinary
  course  of business, the purpose of which shall be to encourage, attract
  and promote track attendance and encourage new and continued  patronage,
  which  events  shall  be  approved  by the racing and wagering board for
  purposes of this  subdivision.  In  the  determination  of  the  amounts
  expended  for such enhancements, the board shall consider the average of
  the  two  immediately   preceding   twelve   month   calendar   periods.
  Notwithstanding  the  foregoing no increase shall be imposed unless such
  corporation or association has been afforded notice and  opportunity  to
  be  heard.  The  racing  and  wagering  board shall promulgate rules and
  regulations to implement the provisions relating to notice and hearing.
    (ii) except as otherwise provided in this paragraph an amount equal to
  six and eight-tenths  per  centum  of  the  total  pool  resulting  from
  on-track  regular  bets,  an  amount  equal to seven and ninety-five one
  hundredths per centum of the total pool resulting from on-track multiple
  bets, an amount equal to ten and one-half per centum of the  total  pool
  resulting  from  on-track  exotic  bets,  an amount equal to fifteen and
  one-half per centum of the total  daily  pool  resulting  from  on-track
  super  exotic  bets  shall  be  used exclusively for purses, of which an
  amount of not less than ninety per centum shall be used exclusively  for
  purses for overnight races conducted by such association or corporation.
  Such  amounts  may  be reduced upon an application approved by the board
  and an agreement between the  licensed  harness  racing  corporation  or
  association   and   the  representative  horsemen's  organization  as  a
  condition to reduce the amounts of retained percentages as provided  for
  in  this  section. However, of the total amount available for purses, an
  amount as determined by contractual obligations between an  organization
  representing  at  least  fifty-one per centum of the owners and trainers
  utilizing the facilities of such association or corporation for  racing,
  training  or stabling purposes and the association or corporation, shall
  be used for the administrative purposes of  said  organization  and  for
  such  welfare  and  medical  plans  for  regularly  employed backstretch
  employees principally employed at the facilities of such corporation  or
  association  as  provided  by said organization, provided, however, that
  eligibility for benefits in such plans shall  not  be  conditioned  upon
  membership in such organization by any employee or employer thereof, and
  any  denial  of  eligibility  for  benefits  in  such  plans which, upon
  investigation and review by the board, is determined  to  have  resulted
  from  a person, firm, association, corporation or organization knowingly
  aiding in or permitting eligibility for benefits being conditioned  upon
  membership  in  such organization shall subject such organization to the
  penalties imposed under sections three hundred  ten  and  three  hundred
  twenty-one  of  this  article but the ratio between the amounts actually

  expended for such welfare  and  medical  plans  and  the  cost  actually
  incurred  in  administering  such  welfare  and medical plans for fiscal
  years  of  such  corporation  or   association,   on   or   after   July
  twenty-fourth,  nineteen  hundred eighty-one, shall not be less than the
  ratio between such amounts actually expended  and  such  costs  actually
  incurred  for  the  fiscal  year  immediately  prior  to such date. Such
  organization shall annually on or before July first certify to the state
  racing and wagering board that it  represents  at  least  fifty-one  per
  centum   of  such  owners  and  trainers  and  provide  copies  of  such
  certification to such association or corporation. Any other organization
  claiming to represent at least fifty-one per centum of such  owners  and
  trainers  may  file a challenge with the state racing and wagering board
  within fifteen days of such original certification. The state racing and
  wagering board shall examine such claim and may  undertake  studies  and
  conduct  hearings  to determine the validity of such claim. Within sixty
  days of receiving such challenge and based upon  the  findings  of  such
  studies and hearings, the state racing and wagering board shall render a
  decision on the validity of such claim and advise such organizations and
  association  or  corporation  of its determination. Upon receipt of such
  original  certification  by  such  organization,  the   association   or
  corporation  shall  make  such payments to said organization and, in the
  event of a challenge brought to any other  organization,  such  payments
  shall  continue  to  be  made  until  such  time as the state racing and
  wagering board renders its decision on such challenge; and
    (iii) the balance of the retained percentage of  such  pools  and  the
  balance of the breaks may be held by such association or corporation for
  its  own  use  and  purposes  except  as provided in paragraph c of this
  subdivision and in subdivision four of section three hundred one of this
  article, provided, however, that the board shall report annually, on  or
  before  July  first,  to the director of the budget, the chairman of the
  senate finance committee and the chairman of the assembly ways and means
  committee  the  extent  to  which  such  corporations  and  associations
  utilized   such   retained  percentages  and  breakage  for  operations,
  maintenance,   capital   improvements,   advertising   and    promotion,
  administration  and  general overhead and evaluate the effectiveness and
  make recommendations with respect to  the  application  of  the  reduced
  rates  of taxation as provided for in subparagraph (i) of this paragraph
  in accomplishing the objectives stated therein. Such report  shall  also
  specify  the  amounts of such retained percentages and breakage used for
  investments not directly related to racing activities and  such  amounts
  used  to  declare  dividends or other profit distributions, additions to
  capital stock, its sale and transfer and additions to retained earnings.
  Such reports shall also include an analysis of any  such  agreements  or
  proposals to conduct or otherwise expand wagers authorized under article
  ten  of  this  chapter  and  present its conclusions with respect to the
  conduct of such wagering, the nature of such proposals  and  agreements,
  and  recommendations  to  ensure the future maintenance of the intent of
  this article and article ten of this chapter.
    b. (i) Of the sums retained  by  any  other  licensed  harness  racing
  association  or corporation other than those described in paragraph a of
  this subdivision, the applicable tax rates for  regular  bets  shall  be
  six-tenths  of  one  per  centum;  for  multiple  bets  shall be one and
  one-tenth per centum; for exotic bets shall be five and  six-tenths  per
  centum  and  for super exotic bets shall be seven per centum, plus fifty
  per centum of the breaks. Effective September  first,  nineteen  hundred
  ninety-four,   for   all   licensed   harness  racing  associations  and
  corporations  which  have   entered   into   a   contract   with   their
  representative  horsemen's  association on and after such date, such tax

  shall be one-half of one per centum of all wagers, plus fifty per centum
  of the breaks.
    Provided, however, that for any twelve month period beginning on April
  first  in  nineteen  hundred ninety and any year thereafter, each of the
  applicable rates set forth above shall be increased  by  one-quarter  of
  one  per  centum  on all on-track bets of any such racing association or
  corporation that did not expend an amount equal to at least one-half  of
  one  per  centum  of  its on-track bets during the immediately preceding
  calendar year for enhancements consisting  of  capital  improvements  as
  defined  by  section  three hundred nineteen of this article, repairs to
  its physical plant, structures, and equipment  used  in  its  racing  or
  wagering operations, as certified by the state racing and wagering board
  to  the  commissioner  of taxation and finance no later than eighty days
  after the close of such calendar year, and five special events  at  each
  track  in  each  calendar  year, not otherwise conducted in the ordinary
  course of business, the purpose of which shall be to encourage,  attract
  and  promote track attendance and encourage new and continued patronage,
  which events shall be approved by the  racing  and  wagering  board  for
  purposes  of  this subdivision. In this regard, expenditures by a county
  agricultural society pursuant to section three hundred nineteen of  this
  article  shall  be credited to the applicable harness racing association
  or corporation for this purpose. In the  determination  of  the  amounts
  expended  for  such enhancements, the board may consider the immediately
  preceding twelve month  calendar  period  or  the  average  of  the  two
  immediately preceding twelve month calendar periods. Notwithstanding the
  foregoing  no  increase  shall  be  imposed  unless  such corporation or
  association has been afforded a notice and opportunity to be  heard  and
  no  increase shall be imposed during nineteen hundred ninety-five on the
  authorized harness racing association conducting  a  special  seven  day
  harness race meeting that did not make such required expenditures during
  nineteen  hundred  ninety-four.  The  racing  and  wagering  board shall
  promulgate rules and regulations to implement the provisions relating to
  notice and hearing.
    Such associations or corporations shall receive credit as a  reduction
  of  the  daily  tax  by  the  state  for  the  privilege  of  conducting
  pari-mutuel betting of amounts equal to one per centum  of  total  daily
  pools   resulting   from   the   simulcast   of  such  association's  or
  corporation's  races  to  licensed  facilities  operated   by   regional
  off-track  betting  corporations in accordance with section one thousand
  eight of this chapter, provided however, that  in  no  event  shall  the
  total daily credit exceed one per centum of the total daily pool of such
  association  or corporation which tax is hereby levied and shall be paid
  to the commissioner of taxation and finance as a reasonable tax  imposed
  by  the  state  for  the  privilege of conducting pari-mutuel betting at
  races run at race meetings held  by  such  association  or  corporation.
  Provided,  however,  that on and after September first, nineteen hundred
  ninety-four such credit shall be  four-tenths  percent  of  total  daily
  pools  resulting  from such simulcasting and that in no event shall such
  total daily credit exceed four-tenths percent of the total daily pool of
  such association or corporation. The racing  and  wagering  board  shall
  report  annually,  before July first, to the director of the budget, the
  chairman of the  senate  finance  committee  and  the  chairman  of  the
  assembly  ways and means committee the extent to which such corporations
  and associations utilized such retained  percentages  and  breakage  for
  operations,   maintenance,   capital   improvements,   advertising   and
  promotion,  administration  and  general  overhead  and   evaluate   the
  effectiveness  and  make recommendations with respect to the application
  of the reduced rates of taxation as provided for in this subparagraph in

  accomplishing the objectives stated  therein.  Such  report  shall  also
  specify  the  amounts of such retained percentages and breakage used for
  investments not directly related to racing activities and  such  amounts
  used  to  declare  dividends or other profit distributions, additions to
  capital stock, its sale and transfer and additions to retained earnings.
  Such reports shall also include an analysis of any  such  agreements  or
  proposals to conduct or otherwise expand wagers authorized under article
  ten  of  this  chapter  and  present its conclusions with respect to the
  conduct of such wagering, the nature of such proposals  and  agreements,
  and  recommendations  to  ensure the future maintenance of the intent of
  this article.
    (ii) Of the sums retained  by  such  association  or  corporation,  an
  amount  equal  to  one  and  three-quarters per centum of the total pool
  resulting from on-track regular, multiple and exotic bets shall be  used
  exclusively  for  the  purpose of increasing purses awarded in overnight
  races conducted by such association or corporation. Such  amounts  shall
  be  in  addition to purse moneys otherwise provided pursuant to existing
  contractual obligations. In this regard an amount equal  to  twelve  per
  centum  of the total bets in super exotic pools shall be used for purses
  in lieu of any such contractual obligations which might otherwise  apply
  to purses to be awarded on super exotic bets. Any portion of such amount
  not  so used during any year shall be so used during the following year,
  failing which such portion shall  be  payable  to  the  commissioner  of
  taxation  and  finance  as  additional  tax.  In addition to the amounts
  required in  this  paragraph,  fifty  percent  of  all  additional  sums
  retained,  as  a result of tax reductions provided in this section after
  September first, nineteen  hundred  ninety-four  to  qualified  licensed
  harness  racing  associations, shall be used exclusively for purposes of
  increasing  purses  awarded  in  overnight  races  conducted   by   such
  association   or   corporation,   provided   that  such  association  or
  corporation has entered into a written agreement with its representative
  horsemen's organization on and after September first,  nineteen  hundred
  ninety-four.  Notwithstanding anything contained herein to the contrary,
  in a harness special betting district the amount 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.  The
  balance of the retained percentage of such pool  may  be  held  by  such
  corporation or association for its own use and purposes.
    (iii)  Of  the  amount  of the breaks from on-track regular, multiple,
  exotic and super exotic bets such association or corporation  shall  pay
  fifty per centum to commissioner of taxation and finance. The balance of
  such  breaks  may be held by such association or corporation for its own
  use and purposes.
    (iv) The state racing and wagering  board  shall  as  a  condition  of
  racing  require an association authorized to operate in areas other than
  Westchester or Nassau county to withhold one percent of all  purses  and
  to  pay  such sum to the horsemen's organization representing the owners
  and trainers utilizing the facilities of such association  which  had  a
  contract  with  the  association  governing  the conditions of racing on
  January first, nineteen hundred ninety-two, as determined by the board.
    Any other horsemen's  organization  may  apply  to  the  board  to  be
  approved  as  the  qualified  organization to receive payment of the one
  percent of all purses by submitting to the board proof of both, that (i)
  it represents more than fifty-one percent of all the owners and trainers
  utilizing the same  facilities  and  (ii)  the  horsemen's  organization
  previously  approved  as  qualified  by  the  board  does  not represent
  fifty-one percent of all the owners  and  trainers  utilizing  the  same

  facilities.  If  the board is satisfied that the documentation submitted
  with the application of any other horsemen's organization is  conclusive
  with  respect to (i) and (ii) above, it may approve the applicant as the
  qualified recipient organization.
    In  the best interests of racing, upon receipt of such an application,
  the board may direct the payments to the previously qualified horsemen's
  organization to continue uninterrupted, or it may direct the payments to
  be withheld and placed in interest-bearing accounts for a period not  to
  exceed ninety days, during which time the board shall review and approve
  or  disapprove  the application. Funds held in such manner shall be paid
  to the organization approved by the board. In no event shall  the  board
  accept more than one such application in any calendar year from the same
  horsemen's organization.
    The  funds  authorized  to  be  paid  by  the  board  are  to  be used
  exclusively for the benefit of those horsemen racing in New  York  state
  through  the  administrative  purposes  of  such qualified organization,
  benevolent activities on behalf of backstretch employees,  and  for  the
  promotion of equine research.
    c.  Of  the  sums  retained  by  any  harness  racing  association  or
  corporation, an amount equal to three-fifths of one per  centum  of  the
  total  pools  resulting  from on-track regular, multiple and exotic bets
  and an amount equal to three per centum of  the  total  pools  resulting
  from on-track super exotic bets shall be paid to the agriculture and New
  York  state  horse  breeding  development  fund, provided, however, that
  after April first, nineteen hundred eighty-six, the amount to be paid to
  the agriculture and New York state horse breeding development fund shall
  equal one per centum of the total pools resulting from on-track regular,
  multiple and exotic bets and an amount equal to three per centum of  the
  total pools resulting from super exotic bets.
    d.  Every  harness  racing association or corporation shall pay to the
  board as a regulatory fee, which fee is hereby levied, fifty  hundredths
  of  one  percent  of  the total daily on-track pari-mutuel pools of such
  association or corporation.
    2. The state tax levied adjusted for any credits in this section shall
  be paid 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 the total of all such  contributions  together
  with  such  other information as the commissioner 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 commissioner determines that any moneys received
  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 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  commissioner  into  the  general
  fund of the state treasury.
    3.  Except as otherwise provided by law 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 bets 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 harness horse racing associations or corporations under this
  section.
    4.  Notwithstanding  any other provisions of this chapter, there shall
  be no pari-mutuel tax imposed upon  the  compensation  received  by  any
  harness  racing  association  or  corporation  in  consideration for (a)
  permission to have wagering conducted outside this state on races run by
  such association or corporation, and (b) the simulcasting  outside  this
  state  of  races run by such association or corporation, except for such
  permission or such simulcasting  as  may  be  granted  to  an  off-track
  betting  operator  in  the  state  of  Connecticut  by  a harness racing
  association or corporation located in Nassau or Westchester county.  Any
  such  association or corporation so simulcasting to an off-track betting
  operator in  the  state  of  Connecticut  shall  pay  to  the  New  York
  commissioner   of  taxation  and  finance  a  reasonable  tax  for  such
  permission and privilege for such simulcasting, which is hereby  levied,
  at  the  following  rates:  one  and one-tenth per centum of total daily
  regular and multiple bets; three and one-tenth per centum of total daily
  exotic bets; and three and one-half per  centum  of  total  daily  super
  exotic bets.
    5.  Tax  rates  in  event  of  failure  to maintain pari-mutuel racing
  activity. a. Notwithstanding any other provision of this section to  the
  contrary,  for  any  calendar year commencing on or after January first,
  nineteen hundred eighty-nine, in which a harness racing  association  or
  corporation  does  not  conduct a minimum number of pari-mutuel programs
  and pari-mutuel races at its facilities equal to  at  least  ninety  per
  centum  of  the  programs and races so conducted during nineteen hundred
  eighty-five or during nineteen hundred eighty-six, whichever is less, in
  lieu of the tax rates set forth in subdivision one of this  section  the
  applicable  pari-mutuel  tax  rates  for such association or corporation
  with respect to on-track pari-mutuel  betting  pools  during  such  year
  shall be as follows:
    (i)  For  such  an association or corporation authorized to operate in
  Westchester or Nassau county: of total daily  on-track  pools  resulting
  from  regular  bets, three and seventy-five hundredths per centum of the
  first five hundred thousand dollars comprising such pools and  five  and
  twenty-five  hundredths  per  centum  of  the  amount  in excess of five
  hundred thousand dollars, plus fifty per centum of the breaks; of  total
  daily on-track pools resulting from multiple bets, four and seventy-five
  hundredths  per  centum  of  the  first  three  hundred thousand dollars
  comprising such pools and six and twenty-five hundredths per  centum  of
  the  amount  in excess of three hundred thousand dollars, plus fifty per
  centum of the breaks; of  total  daily  on-track  pools  resulting  from
  exotic  bets,  eight and seventy-five hundredths per centum of the first
  two  hundred  thousand  dollars  comprising  such  pools,  and  ten  and
  twenty-five hundredths per centum of the amount in excess of two hundred
  thousand  dollars,  plus  fifty  per  centum of the breaks; and of total
  daily on-track pools resulting from super exotic bets, seven per centum,
  plus fifty per centum of the breaks; and
    (ii) For any harness racing association or corporation other than  one
  described in subparagraph (i) of this paragraph: of total daily on-track
  pools  resulting  from  regular  bets, one and one-half per centum, plus
  fifty per centum of the breaks; of total daily on-track pools  resulting
  from multiple bets, two per centum, plus fifty per centum of the breaks;
  of  total  daily  on-track  pools  resulting  from  exotic bets, six and
  one-half per centum, plus fifty per centum of the breaks; and  of  total

  daily on-track pools resulting from super exotic bets, seven per centum,
  plus fifty per centum of the breaks.
    b.   The  provisions  of  this  subdivision  shall  not  apply  to  an
  association or corporation for any calendar year  for  which  the  state
  racing  and wagering board certifies to the commissioner of taxation and
  finance:
    (i) by December fifteenth of the year immediately preceding such year,
  that such association or corporation has been assigned  for  such  year,
  from the programs and races it requested, at least the minimum number of
  programs and races prescribed in paragraph a of this subdivision, or, if
  fewer  than such number were assigned for such year, that the assignment
  of such lesser number was for good  cause  due  to  factors  beyond  the
  control  of  such  association or corporation or because the board found
  that it would be uneconomical or impractical  for  such  association  or
  corporation to be assigned the prescribed number; and
    (ii)  by  January  thirty-first  of the year immediately subsequent to
  such year, that such association or corporation did conduct such  number
  of  programs and races as were certified pursuant to subparagraph (i) of
  this paragraph, or if it failed to conduct such number that such failure
  was for good cause due to factors beyond  its  control  or  because  the
  board  found  it  uneconomical  or  impractical  for such association or
  corporation to conduct such a number.
    c. For any calendar year for which the state racing and wagering board
  does not certify pursuant to  the  provisions  of  subparagraph  (i)  of
  paragraph  b  of  this  subdivision  with  respect  to an association or
  corporation, the tax imposed  by  this  section  shall  be  computed  by
  substituting  the  provisions of paragraph a of this subdivision for the
  provisions of paragraph a or b, whichever is applicable, of  subdivision
  one  of  this  section  and  shall  pay  the  tax  so  computed  to  the
  commissioner of taxation and finance. In such computation  and  payment,
  all other provisions of this section shall apply as if the provisions of
  this  paragraph  and  of  paragraph  a  of  this  subdivision  had  been
  incorporated in whole in paragraph a or b, whichever is  applicable,  of
  subdivision one of this section.
    d. For any calendar year for which the state racing and wagering board
  does  not  certify  pursuant  to  the provisions of subparagraph (ii) of
  paragraph b of this  subdivision  with  respect  to  an  association  or
  corporation,  the  tax required to be paid hereunder for such year shall
  be equal to the difference between  the  tax  imposed  pursuant  to  the
  provisions  of  paragraph  a  of  this  subdivision  and the tax imposed
  pursuant to the provisions of paragraph a or b, whichever is applicable,
  of subdivision one of this section, less one-half of such difference  in
  recognition of purses which were required to be paid, plus an additional
  amount  equal  to  ten  per centum of such tax in the event of a willful
  failure to comply with the provisions of subparagraph (ii) of  paragraph
  b  of this subdivision and such association or corporation shall pay the
  tax so computed to the commissioner of taxation and finance on or before
  March fifteenth of the following year. Notwithstanding the provisions of
  this subdivision, in the event that upon appeal from  the  determination
  of  the  state racing and wagering board that the certification provided
  in paragraph b of this subdivision will  not  be  made,  it  is  finally
  determined  that  such  board was erroneous in failing to so certify and
  that any moneys received by the commissioner  of  taxation  and  finance
  under paragraph c of this subdivision were paid in error, the same shall
  be refunded at the rate of interest of six percent per annum. Payment of
  such  tax due, or the anticipation of such payment, shall not affect the
  determination of purses in the year in which such tax arises or  in  the
  year  in  which such payment is made nor shall such payment in any other

  manner be considered in any statutory  or  contractural  calculation  of
  purse obligations.
    e.  Written  notice  of the certification of the board pursuant to the
  provisions of paragraph b of this subdivision  shall  be  given  by  the
  board to the appplicable association or corporation by the dates therein
  specified.  In  like manner, written notice that such certification will
  not be made shall be given by the board to the commissioner of  taxation
  and finance and the applicable association or corporation by such dates.