Proponents of gambling here in MA argue that legalized gaming would bring $$$ to MA.
I realize that casinos would pay income tax on profits and real estate taxes to the local community, etc., but are there unique taxes on casinos (either US or some states) in addition to the taxes that other businesses pay? Are there any exemptions that casinos have over other businesses?
Each state/city/jurisdiction imposes tax on the industry and percentages can vary. It's quite complex and there's more to it than just the tax on revenues. NJ, for instance (since 1978, unless recent changes):
New Jersey Land-based casino tax, starting in 1978.
Gambling tax: Tax base: AGR. Tax rate: 8%.
License fees: The initial fee must be at least $200,000, with an annual renewal fee of at least $100,000. Slot machine license fees are $500 per machine.
Investment alternative tax: Tax base: AGR of casino licensees. Tax rate: 2.51.
Miscellaneous casino taxes: * 4.25% tax on the value of casino complementarities (entertainment, food, rooms, beverages provided at no or reduced prices to patrons of casinos). * 8% tax on the gross revenues of companies that conduct multi-casino progressive slot machines. * 7.5% tax on the calendar year 2002 adjusted net income of a casino (for fiscal years 2004-06 only).
Casinos also pay Federal and State Corporation taxes. Here is a complex study which may need updating but it is quite revealing.
I am not expert on this. See
Note the part about "If you play table games, for the most part your winnings are not reportable. " That would be a significant thing. Not a tax "exemption" as you were asking about, but it is an example of a special rule that exempts some paperwork.
Exactly. "Not reportable" refers to the casino's 1099 requirements. The winner does have to report his or her winnings.
I see in today's Financial Times that the Foxwoods casino in Connecticut, one of the closest casinos to Boston, is about to default on their bonds. There is an interesting legal and tax question as to whether they can go Chapter 11, since they are owned by the Mohegan tribe which looks a lot like a government body.
Followups somewhere else, I suspect.
R's, John
The palefaces in Canada open a bunch of casinos. Perhaps the fact that they're in a foreign nation has something to do with it.
Seth
Are you a sovereign nation whose land was taken from you by force, and forced to move to a reservation?
Wikipedia has what appears to be a decent history of Native American casinos:
I fail to see the racism in this policy. The indiginous Indian tribes were granted sovereignty over their tribal lands - most likely to recognize their rights and to protect them from attacks by the US Army. So think of them as Mexico, Canada, Bermuda, Greenland, etc. - other places the Feds can't tax.
Dick
As long as it is under title 31 levels ( anything over 10K is reported) to more then just the IRS.
Of course, we did take certain Mexican territory by force and tax it anyway...
As per "Field of Dreams": If you take it, tax revenues will come.
Dick
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