The state would end millions of dollars in annual payments to communities that have casinos under legislation the Senate Appropriations Committee approved Thursday.
But those local governments would still keep millions more from tax payments and local agreements with the gambling operators.
The phased-in change would save the state $24 million in 2015 and another $48 million each year thereafter—all money that’s now being collected from gambling taxes and sent to cities, towns and counties.
The state would then use much of that cash to offer a new tax credit to casinos to encourage them to renovate and rebuild to better deal with competition from casinos in Oho, Illinois and Michigan.
Senate Appropriations Chairman Luke Kenley, R-Noblesville, said he wants to have the “local units share in the commitment” to help the casinos thrive.
Senate Bill 528 would reverse a policy the General Assembly approved a decade ago that capped the revenues that local communities collect from wagering and admissions taxes but also guaranteed they’d never receive less than the amounts they collected in 2002.
Kenley said the state made that promise when riverboat tax revenue was at one of its highest levels and lawmakers believed it would continue to grow. But recently, an economic downturn and competition from other states has depressed those revenues, and the state is consistently paying out some of its gambling taxes to local governments to make good on the guarantees.
On Thursday, the Appropriations Committee voted to end the payments as part of a larger bill that aims to help shore up the casino industry and the taxes it pays to the state. Kenley said the payments change is an effort to “rectify something that appears to be getting out of hand.”
...
If passed into law, the bill—with all changes taken into account—would mean $4.4 million less in 2015 and $12.1 million less for the town of Lawrenceburg in Dearborn County where Hollywood Casino is located. But the community would still receive about $45 million in taxes and local payments from the casino.
For Harrison County—the home of Horseshoe Southern Indiana casino—the loss would be about $3.3 million in 2015 and $8.2 million in 2016. But the county would still receive $18.5 million in taxes and other payments.
For Evansville, home of Casino Aztar, the loss would be about $900,000 the first year and $2.5 million in the second. That will leave the community with $6.9 million in annual taxes and payments.
Eight other communities would also be affected by the changes.
...
See the full article here:
http://www.ibj.com/senate-bill-would-stop-paying-gambling-counties/PARAMS/article/39657
But those local governments would still keep millions more from tax payments and local agreements with the gambling operators.
The phased-in change would save the state $24 million in 2015 and another $48 million each year thereafter—all money that’s now being collected from gambling taxes and sent to cities, towns and counties.
The state would then use much of that cash to offer a new tax credit to casinos to encourage them to renovate and rebuild to better deal with competition from casinos in Oho, Illinois and Michigan.
Senate Appropriations Chairman Luke Kenley, R-Noblesville, said he wants to have the “local units share in the commitment” to help the casinos thrive.
Senate Bill 528 would reverse a policy the General Assembly approved a decade ago that capped the revenues that local communities collect from wagering and admissions taxes but also guaranteed they’d never receive less than the amounts they collected in 2002.
Kenley said the state made that promise when riverboat tax revenue was at one of its highest levels and lawmakers believed it would continue to grow. But recently, an economic downturn and competition from other states has depressed those revenues, and the state is consistently paying out some of its gambling taxes to local governments to make good on the guarantees.
On Thursday, the Appropriations Committee voted to end the payments as part of a larger bill that aims to help shore up the casino industry and the taxes it pays to the state. Kenley said the payments change is an effort to “rectify something that appears to be getting out of hand.”
...
If passed into law, the bill—with all changes taken into account—would mean $4.4 million less in 2015 and $12.1 million less for the town of Lawrenceburg in Dearborn County where Hollywood Casino is located. But the community would still receive about $45 million in taxes and local payments from the casino.
For Harrison County—the home of Horseshoe Southern Indiana casino—the loss would be about $3.3 million in 2015 and $8.2 million in 2016. But the county would still receive $18.5 million in taxes and other payments.
For Evansville, home of Casino Aztar, the loss would be about $900,000 the first year and $2.5 million in the second. That will leave the community with $6.9 million in annual taxes and payments.
Eight other communities would also be affected by the changes.
...
See the full article here:
http://www.ibj.com/senate-bill-would-stop-paying-gambling-counties/PARAMS/article/39657
