Wednesday, August 18, 2004
Detroit Casinos Face Higher Taxes
On Tuesday, the governor of Michigan signed into law a bill that raises the tax on Detroit's casinos by one-third. The old tax on "net win" was 18 percent, and has now been raised to 24 percent. One of the three directly affected casinos, the Greektown, unsuccessfully tried what appeared to be a bit of political arm-twisting. Shortly before the bill was signed, the Greektown announced a slew of layoffs -- and also said that the layoffs would be revoked if the tax was not raised.
When Detroit casinos recently celebrated their 5-year anniversary, we noted that the original plan [Vice Squad permalink use!] called for the current, "temporary" casinos to be replaced by permanent, fancy structures with hotels and other amenities. That plan is well behind schedule, but to give it a boost, the tax bill also provides for still higher taxes to be applied in 2009 and beyond if the permanent casinos are not operating.