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Iowa Track Issue Before Court29 April 2003IOWA – As reported by (Iowa) Telegraph Herald: ``There are a lot of worried minds between Des Moines, Dubuque and Washington, D.C., as two sides prepare to argue the case of Iowa's two-tiered gambling tax before the U.S. Supreme Court. The outcome of Tuesday's hearing could mean a huge financial hit for the city of Dubuque and tri-state area charities, or a reversal of fortune for the state's coffers. ``…The Supreme Court takes on relatively few cases a year, so its decision to hear Iowa's gambling tax squabble speaks volumes of its significance. ``…The matter came to a head in June, when the Iowa Supreme Court ruled the state's two-tiered gambling tax system unconstitutional. Before then, Iowa taxed racetrack casinos at a higher rate than riverboat gambling operations. ``…The racetracks challenged the taxing system, losing a first round at the district court level. They appealed to the Iowa Supreme Court, with the court on a 4-3 margin mandating that the state equalize the taxing rates. The racetracks immediately began paying the 20 percent tax, and the court ordered the state to refund to the operations a combined $112 million in unconstitutionally collected taxes. ``…The high court is expected to make a decision by the end of June…" |