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Iowa Republicans Unveil New Casino Plan

IOWA – As reported by the Des Moines Register: "Frustrated with the lack of progress in trying to reach an agreement with racetracks in an ongoing tax dispute, Senate Republicans on Wednesday unveiled a plan that includes higher tax rates and a one-time fee for all state-licensed casinos totaling $160 million.

"The $160 million in fees would compensate the state for lost revenue, back taxes and interest stemming from a lawsuit won by the state's three racetracks.

"…One House leader quickly shot down the Senate plan as penalizing riverboats. Rep. Jamie Van Fossen, a Davenport Republican who's chairman of the tax-writing House Ways and Means Committee, predicted the plan would not get the 51 votes needed for House passage.

"…The dispute stems from the Iowa Supreme Court ruling that the state can't tax racetracks nearly twice as much as riverboats.

"…Under the plan unveiled Wednesday:

"* One-time fee: Casinos would pay a one-time fee, totaling $160 million. The fee for each casino would vary, based on 15.5 percent of revenues.

"…* Tax rates: Casinos would pay higher tax rates than those proposed by the House. The state's 10 riverboats and the Dubuque racetrack would pay 23 percent of revenues, instead of 22 percent. Prairie Meadows in Altoona and Bluffs Run in Council Bluffs would pay 25 percent of revenues, rather than 24 percent. However, if those casinos chose not to have table games, then they would also pay 23 percent…"

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