Planned Tax Rate for Casinos Called too Low by Critics

According to the Boston Globe, the current language of the proposed casino bill would allow the state to take 25 percent of revenue from each proposed casino. Many critics are saying that the rate is too low, and would give up millions of dollars of much needed revenue for the state.

The bill itself sets up three regions in the state in which casino projects could be constructed. One region is allowed one casino. Even now there are propsals going through in the state for casinos to be built; Foxborough, as of last week, that would allow a casino to be built in the area, but three other nearby towns, Milford, Plainville and Raynham, still have proposals on the table.

According to one critic, the state is giving the casinos a "legal monopoly," and should therefore have to pay more in taxes because they are not competing with any other state casinos within their designated regions.

Pennsylvania recently opened up the state to casino gambling, and is now charging a 55 percent tax rate for the establishments. Gambling supportors say that keeping the rate too high would detract from what casino owners are allowed to build with the casino, such as hotels and ancillary facilities, which would create more construction and service jobs in the local area if nearby casino plans are approved.

Four years ago, when the bill was first proposed and when the economy was in better shape, the original tax rate was 27 percent.