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New Iowa Plan Taxes Tracks Higher

IOWA – As reported by the Des Moines Register: "Prairie Meadows and a Council Bluffs racetrack would be taxed at a higher rate than other state-regulated casinos under a new tax plan proposed by Senate leaders Wednesday.

"Critics said the plan threatens to break a delicate agreement between House leaders and the state's three racetracks, which includes the tracks' forgiving up to $180 million in back taxes and interest, calculated daily, owed by the state.

"…The Iowa Supreme Court has ruled that the state cannot tax racetrack-casinos at nearly twice the rate that it taxes riverboats. Since the ruling, riverboats and racetracks have been paying 20 percent.

"Under the Senate proposal, Prairie Meadows Racetrack and Casino in Altoona and Bluffs Run Casino and Greyhound Park in Council Bluffs would be taxed at 27 percent of adjusted gross revenues, instead of the 24 percent in the House bill. Dubuque Greyhound Park and Casino would pay 25 percent, up from 22 percent approved by the House. The state's riverboats would pay 22 percent, the same as the House bill.

"…Tom Flynn, an attorney for Prairie Meadows, said it was tough enough for the racetrack's board to accept the House bill, which would tax Prairie Meadows 2 percentage points higher than the riverboats and Dubuque racetrack…"

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