§ 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.