Are there special taxes on casinos?
NadCixelsyd
bring $$$ to MA.
I realize that casinos would pay income tax on profits and real estate
taxes to the local community, etc., but are there unique taxes on
casinos (either US or some states) in addition to the taxes that other
businesses pay? Are there any exemptions that casinos have over
other businesses?
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John Fisher
> Proponents of gambling here in MA argue that legalized gaming would
> bring $$$ 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?
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, � >>
> << nor can it used, for the purpose of avoiding penalties �>>
> << that may be imposed upon the taxpayer. � � � � � � � � �>>
> << � � � � � � � � � � � � � � � � � � � � � � � � � � � � >>
> << � The Charter and the Guidelines for submitting posts � >>
> << �to this newsgroup as well as our anti-spamming policy �>>
> << � � � � Copyright (2007) - All rights reserved. � � � � >>
> << ------------------------------------------------------- >>
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).
* $3 per day occupancy fee on each hotel room in a
casino hotel that is occupied by a guest as a
complimentary
Casinos also pay Federal and State Corporation taxes. Here is a
complex study which may need updating but it is quite revealing.
http://www.allbusiness.com/legal/laws-government-regulations/476176-1.html
DF2
>Proponents of gambling here in MA argue that legalized gaming would
>bring $$$ to MA.
>
>I realize that casinos would pay income tax on profits and real estate
>taxes to the local community, etc., but are there unique taxes on
>casinos (either US or some states) in addition to the taxes that other
>businesses pay? Are there any exemptions that casinos have over
>other businesses?
I am not expert on this. See
http://www.bankrate.com/brm/itax/tax_adviser/20080117_gambling_winnings_tax_a1.asp
for some non-rigorous discussion from the point of view of the
patron.
Note the part about "If you play table games, for the most part your
winnings are not reportable. " That would be a significant thing.
Not a tax "exemption" as you were asking about, but it is an example
of a special rule that exempts some paperwork.
Bill Brown
> Note the part about "If you play table games, for the most part your
> winnings are not reportable. " That would be a significant thing.
> Not a tax "exemption" as you were asking about, but it is an example
> of a special rule that exempts some paperwork.
>
Exactly. "Not reportable" refers to the casino's 1099 requirements.
The winner does have to report his or her winnings.
Chip
> In misc.taxes.moderated, NadCixelsyd wrote:
>
>> Proponents of gambling here in MA argue that legalized gaming would
>> bring $$$ 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?
Out here in the Wild West, AZ, Native Americans are the only ones
allowed to have casinos on their reservations. But they need an
"Agreement" with the State to do so. When they first started, the State
got NOTHING. Then the State got smart and only extended their
"Agreements" by getting a piece of the pie, ~10% of the profit. I don't
believe the US Gov gets a dime from them.
BTW, with all that money the tribes have become a potent political
force. Before they were totally ignored. The new money has brought the
tribes from below poverty levels to reasonable living conditions and
provided lots of tourist related jobs and business. Next year a new
Baseball Spring Training facility is going on tribal land. They almost
all have hotel and resort facilities.
My 88 year old M.I.L. goes every weekend to play poker w/ the boys,
enjoys it, and sometimes takes us out to dinner on her winnings. I like
the whole arrangement.
Chip
Wallace
"Chip" <chip....@gmail.com> wrote in message
news:he4hl3$1gi$1...@aioe.org...
> DF2 wrote:
>> In misc.taxes.moderated, NadCixelsyd wrote:
>>
>>> Proponents of gambling here in MA argue that legalized gaming would
>>> bring $$$ to MA.
>>>
>>> I realize that casinos would pay income tax on profits and real estate
>>> taxes to the local community, etc., but are there unique taxes on
>>> casinos (either US or some states) in addition to the taxes that other
>>> businesses pay? Are there any exemptions that casinos have over
>>> other businesses?
>
> Out here in the Wild West, AZ, Native Americans are the only ones allowed
> to have casinos on their reservations. But they need an "Agreement" with
> the State to do so. When they first started, the State got NOTHING. Then
> the State got smart and only extended their "Agreements" by getting a
> piece of the pie, ~10% of the profit. I don't believe the US Gov gets a
> dime from them.
>
> BTW, with all that money the tribes have become a potent political force.
> Before they were totally ignored. The new money has brought the tribes
> from below poverty levels to reasonable living conditions and provided
> lots of tourist related jobs and business. Next year a new Baseball
> Spring Training facility is going on tribal land. They almost all have
> hotel and resort facilities.
>
> My 88 year old M.I.L. goes every weekend to play poker w/ the boys, enjoys
> it, and sometimes takes us out to dinner on her winnings. I like the
> whole arrangement.
I will like "the whole arrangement" when I, a pale face, have the same right
to open a casino. Until such time, I will feel aggrieved under this racist
policy.
John Levine
NadCixelsyd <nadci...@aol.com> wrote:
>Proponents of gambling here in MA argue that legalized gaming would
>bring $$$ to MA.
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
Seth
Wallace <please...@microsoft.com> wrote:
>I will like "the whole arrangement" when I, a pale face, have the same right
>to open a casino. Until such time, I will feel aggrieved under this racist
>policy.
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
Barry Margolin
> I will like "the whole arrangement" when I, a pale face, have the same right
> to open a casino. Until such time, I will feel aggrieved under this racist
> policy.
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:
http://en.wikipedia.org/wiki/Native_American_gambling_enterprises
--
Barry Margolin, bar...@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
Dick Adams
> I will like "the whole arrangement" when I, a pale face, have
> the same right to open a casino. Until such time, I will feel
> aggrieved under this racist policy.
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
wuffa
> On Nov 19, 1:30�pm, DF2 <replyvia@newsgroup_please.invalid> wrote:
>
> > 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.
>
>
reported) to more then just the IRS.
Adam H. Kerman
>>I will like "the whole arrangement" when I, a pale face, have
>>the same right to open a casino. Until such time, I will feel
>>aggrieved under this racist policy.
>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.
Of course, we did take certain Mexican territory by force and tax it
anyway...
Dick Adams
> Dick Adams <rda...@panix.com> wrote:
>> Wallace <please...@microsoft.com> wrote:
>>> I will like "the whole arrangement" when I, a pale face, have
>>> the same right to open a casino. Until such time, I will feel
>>> aggrieved under this racist policy.
>> 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.
> 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