The most controversial item is a new tax on net profits, said to be the first of its kind in the nation. Among other things, critics say the move penalizes casinos for being too profitable: According to estimates, the casinos that don't make any money will pay about $350,000 a year to the state, while the most profitable establishments will wind up paying upwards of $4 million based on their net profits. The tax will expire after three years, and to mollify casino operators in the meantime, lawmakers added a provision giving casinos a tax credit for non-gaming additions to their properties.
The other new levies include a $3 surcharge on all occupied hotel rooms, even those that are "comped." According to industry estimates, a majority of the casino/hotel guest rooms in this city are freebies at any given time. Also, an additional 4.25% tax will be levied on the value of all casino complimentary perks, including food and entertainment.
The bill also increases the casino parking fee from $2 to $3 and they will no longer be able to keep a portion of that fee to cover so-called administrative costs. And an 8% tax will be imposed on lease payments to suppliers of multi-casino progressive slots. Finally, the new casino tax law imposes the existing 8% gaming revenue tax on gambling debts that the casino operators determine can't be collected.
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