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Lowballing a Paddlewheel

LOUISIANA -- As reported by the Times-Picayune: ``Short of a hurricane, a bad leak or some other calamity, it's hard to imagine how the value of a floating casino could drop from more than $20 million one year to $6.5 million the next. But for Bally's Belle of New Orleans, a highly favorable reassessment approved by the Louisiana Tax Commission did the trick.

``That wasn't the casino's only coup in recent years. In 2001, Bally's won an exemption from a 3 percent tax increase imposed on other casino boats.

``…Erroll Williams, the 3rd District assessor, came up with a $21.5 million assessment for 2002 by noting the Belle's $33 million construction cost and then applying a 12-year depreciation schedule. Even that was generous; Mr. Williams didn't know that the Tax Commission had recommended that floating casinos be depreciated over a longer period of time.

``Nevertheless, Mr. Naquin successfully urged the commission to accept a $6.5 million assessment based on the market prices of former casino boats -- even though an operating casino is more valuable than one that's been taken out of commerce, and even though the Belle was insured for $33.1 million…"

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