Section 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
  per  centum  of  the  total  deposits  in  pools  resulting from regular
  on-track bets and less nineteen per centum  of  the  total  deposits  in
  pools  resulting  from  multiple bets and less twenty-five per centum 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  per centum; the applicable tax rates for multiple bets
  shall be three and one-half per centum; the  applicable  tax  rates  for
  exotic bets shall be eight per centum, plus sixty-five per centum of the
  amount  of  the  breaks  from on-track regular, multiple and exotic bets
  shall be paid by such  corporation  or  association  to  the  state  tax
  commission  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
  state  tax  commission  at  such  regular  intervals  as  the  said  tax
  commission 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 said tax commission 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 payment of the
  tax shall be payable in case any tax imposed by this section is not paid
  when due. If  the  state  tax  commission  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 state tax commission into the
  general fund of the state treasury. Ten per centum 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 state tax
  commission shall be determined by multiplying each applicable  rate  for

  total  daily  pools  from  on-track regular bets by the percentage which
  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 which 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.
    4.  Notwithstanding the provisions of subdivision one of this section,
  prior to April first, nineteen hundred eighty-nine, the  applicable  tax
  rates shall be as follows:
    a.  From  April  first,  nineteen  hundred  eighty-six  through  March
  thirty-first, nineteen hundred eighty-seven, of  the  sum  retained  the
  applicable tax rates for regular bets shall be three-quarters of one per
  centum;  the  applicable  rates  for  multiple,  exotic  bets  shall  be
  seven-eighths of one per centum; plus sixteen and one-quarter per centum
  of the breaks from all bets.
    b. After  April  first,  nineteen  hundred  eighty-seven  of  the  sum
  retained  the  applicable tax rates for all bets shall be one per centum
  of all wagers, plus twenty per centum of the breaks.