Final negotiations are under way for the gaming expansion plan in the US state of Illinois, but the debate over tax rates is causing a delay.
“There are several hang-ups, but the tax rate is the big one,” said Rep. Bob Rita, the new sponsor for Senate Bill 1739. Casinos are taxed at varying rates depending on their revenues and the Senate-approved bill changes the tax brackets for the higher-earning casinos, which could lead to reduced taxes for some casinos.
Specifically, the tax rate would drop to 40 per cent for casinos earning between $200m and $300m and casinos wouldn’t be taxed at 50 per cent until their revenues passed $800m.
Rita thinks a compromise on the bill can be reached, but time is running out as this legislative session ends on May 31.
The Senate has already approved the bill, which will allow five new casinos, including one in Chicago. While amendments to SB 1739 have met some of the concerns that led Governor Pat Quinn to veto earlier versions of the bill, some other remaining issues include proper state oversight of the Chicago casino and pension reform, the latter of which is expected to be settled this week.
