On February 22, I wrote about possible cuts to the casino gambling revenues received by local governments in Indiana (Riverboat Wagering Tax to Monroe County May be Cut). Since then, Senate Bill 528 passed the full Senate and was sent to the House for consideration.
The version of SB528 that passed the Senate makes some major changes to the taxes levied on gambling businesses, including eliminating the riverboat admissions tax (paid by casinos based on the number of people that go through the turnstile at the casino, regardless of amount paid by casino patrons), and replacing it with a 3.45% supplemental wagering tax based on the adjusted gross receipts of the casino.
In addition, and of direct interest to non-casino counties such as Monroe, SB528 replaced the flat $33M/year revenue sharing arrangement (which allocated $33M of riverboat admissions taxes to local units of government in non-casino counties based on their relative populations) with a new arrangement in which 5.1% of the taxes collected (after June 30, 2014, and other than from the French Lick Casino) will be distributed to local units of government in non-casino counties.
Legislative Services Agency, in the Fiscal Impact Statement for SB528, estimates that this change will result in a net loss of $6.65M in revenue to non-casino casino counties as of FY2015 and beyond.
The Association of Indiana Counties (AIC) provides a projection of the impact of this change on each local unit of government in Indiana. I did my own projections based on the FY2015 change in overall receipts from the 5.1% tax as projected from the Fiscal Impact Statement, and came up with slightly different numbers from AIC — but they only differ by a few hundred dollars, which is well within the margin of error for the $6.65M revenue reduction, in any case.
The table below then summarizes the impact of this legislative change on Monroe County for FY2015 (including both AIC’s projections and my projections). It appears that Monroe County as a whole will see $164K or so less in revenues from casino gambling in 2015. This is clearly something that needs to be taken into account in budgeting for the next few years — but is not a game-changing (pun intended) hit to our community’s revenues for public services.
|Unit of Government||2012 Distribution||AIC Projected Loss||2015 Projected Distribution (McKim)||2015 Projected Loss (McKim)|
|Monroe County Government||$302,078.48||$60,415.70||$241,205.09||$60,873.39|
|City of Bloomington||$476,312.84||$95,262.57||$380,328.59||$95,984.25|
|Town of Ellettsville||$37,782.77||$7,556.55||$30,168.97||$7,613.80|
|Town of Stinesville||$1,172.94||$234.59||$936.57||$236.37|
|Monroe County Total||$817,347.03||$163,469.41||$652,639.22||$164,707.81|
And of course — anything could happen to this bill as it hits the House! So stay tuned…