The tax increase was done in two steps--July 1, 2002 and July 1, 2003. The first measure set the tax rate at 50% on revenues exceeding $200 million. This year's increase sets the rate at 70% on revenues exceeding $250 million.
Las Vegas-based Mandalay Resort Group claims the higher taxes on casinos cost the company $0.05 per share in the most recent quarter. The company owns 50% of the Grand Victoria.
Operating cash flow for the first six months of the company's year are off more than 25%, to $44.4 million, according to Mandalay Resort Group's earnings report.
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