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Casinos Bumping up Connecticut Property Taxes

NORWICH, Connecticut – As reported by the Connecticut Day: "Southeastern Connecticut property owners are paying higher taxes because of the dramatic growth in the tourism industry, according to a new study.

"Casinos and the employees they've attracted have caused town services and education costs to soar, while the tax dollars generated by the tourism industry have flowed not to the towns, but to the state.

"Such were the conclusions reached by a study released Thursday: `The Impacts of Tourism on New London County Municipalities.' Impact Research Associates of Wakefield, R.I., prepared the $17,000 study for the Southeastern Connecticut Council of Governments and Connecticut East, the local tourism district.

"…The study period corresponded with a dramatic increase in casino development; Foxwoods opened in 1992, Mohegan Sun four years later.

"The casinos are generating revenue, but that revenue is not being distributed to towns and cities in the region, said Timothy Tyrrell, president of Impact Research Associates and primary author of the study.

"…With no ability to tax other than to levy property taxes, towns and cities in New London County have not been able to benefit from the flow of new revenues generated by the tourism industry.

"Instead, the money flows into the state's budget coffers. Income, sales and hotel taxes all go to the state. Some of that money returns in state grants, but not enough to cover the increase in local expenses, the study found. The slot-machine revenue fund is the most dramatic example, with only $14 million of the $300

"…The study found no evidence that crime has increased because of casino growth. In fact, crime rates declined during the period studied…"

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