From the Northwest Indiana Times:
The proposed elimination of a tax on state casinos may mean the loss of approximately $4.5 million in annual gaming revenue to Hammond, city officials say.
A state legislator is proposing the state do away with the admissions tax on casinos, and, in its place, create a new tax to supplement the current wagering tax.
Why Hammond may feel an impact is found in what City Controller Bobby Lendi describes as a “complicated nuance” of the proposed legislation.
The amount of wagering tax Hammond can receive is capped at $13.7 million a year, and the city usually hits that cap within the first seven to eight months.
“Some boats, some gambling establishments, some of those hit their cap and some don’t,” Lendi said. “We hit our cap every year.”
At issue is whether the proposed supplemental tax will fall under the existing cap of the wagering tax, Lendi said. If it does, Hammond is expected to take a financial hit comparable to the approximate $4.5 million it receives through the admissions tax.
Hammond’s approximate $36 million per year in gaming revenue plays an integral role in city finances.
For this year’s budget, the city used $12 million of the revenue to shore up the city’s general fund. Gaming revenue also supports the College Bound program and is used to provide a $3.5 million annual payment to the Northwest Indiana Regional Development Authority.
The bill, authored by state Sen. Phil Boots, R-Crawfordsville, cleared an initial Senate committee by a unanimous vote and is now assigned to the Senate Appropriations Committee.
...
http://www.nwitimes.com/news/local/lake/hammond/proposed-changes-to-casino-taxes-may-impact-hammond/article_8a618bfc-49b6-5933-b674-b35b558230ff.html
