This past May the 5 new commissioners reinstated the former tax rates for fiscal year 2013. The maximum tax rate is 20%, the rate as of July 1, 2008. According to Amendment 50 passed by the voters in 2008, the maximum rate cannot exceed the July 1, 2008 rate unless the state’s voters approve an increase.
Showing posts with label A50. Show all posts
Showing posts with label A50. Show all posts
Friday, August 31, 2012
FY2011 Casino Tax Rates Reinstated for FY2013
This past May the 5 new commissioners reinstated the former tax rates for fiscal year 2013. The maximum tax rate is 20%, the rate as of July 1, 2008. According to Amendment 50 passed by the voters in 2008, the maximum rate cannot exceed the July 1, 2008 rate unless the state’s voters approve an increase.
Thursday, July 7, 2011
Amendment 50 Meets State’s Budget Woes -- Hickenlooper Replaces Gaming Commission
In most states casino tax rates are set by the legislature, but in Colorado the 5 members of the Colorado Limited Gaming Control Commission (or the voters of Colorado) approve tax rate changes. For instance, in May of 2008 the commission approved a targeted tax cut for casinos with revenues of less than 8 million dollars.
This year at the May 19 meeting the 4 attending commissioners approved a controversial across-the-board 5% cut in the casino tax rate to provide financial relief to the industry, despite some of the bigger casinos bringing in large profits. Casino tax rates are based on net revenue (officially called Adjusted Gross Proceeds equal to bets minus payouts); higher revenue determines a higher tax rates. On July 1 the top tax rate changed from 20% to 19%. The other tax rates went from 0.25% to 0.2375% (under 2 million dollars in AGP), 2% to 1.9% ($2M to $5M), 9% to 8.55% ($5M to $8M), 11% to 10.45% ($8M to $10M), and 16% to 15.2% ($10M to $13M).
On June 6 the 5 members of the commission unanimously rejected requests from the Colorado Community College System and History Colorado to reverse the impending tax cut. (Prior to Amendment 50 25% of the gaming tax revenue went to historic preservation. Passage of Amendment 50 in 2008 empowered local voters in gaming communities to increase the bet limit from $5 to $100 with 78% of the resulting increased tax revenue going to community colleges.)
Governor John Hickenlooper was unhappy with the casino tax rate cut, especially given the state's current budget woes. On July 6 he reminded us that the commission members serve “at the pleasure of the governor” with his decision to replace the entire commission. Hickenlooper was already due to replace two of the members whose terms expired in early July.
The rules for reversing the casino tax rate cut are unclear. It may be that the new commission can just vote to reverse it. It is clear, however, that Amendment 50 prohibits the commission from setting any tax rate ABOVE the previous level (in effect since July 1, 2008). A statewide vote of the electorate is required to increase casino tax rates above the July 1, 2008 level.
This year at the May 19 meeting the 4 attending commissioners approved a controversial across-the-board 5% cut in the casino tax rate to provide financial relief to the industry, despite some of the bigger casinos bringing in large profits. Casino tax rates are based on net revenue (officially called Adjusted Gross Proceeds equal to bets minus payouts); higher revenue determines a higher tax rates. On July 1 the top tax rate changed from 20% to 19%. The other tax rates went from 0.25% to 0.2375% (under 2 million dollars in AGP), 2% to 1.9% ($2M to $5M), 9% to 8.55% ($5M to $8M), 11% to 10.45% ($8M to $10M), and 16% to 15.2% ($10M to $13M).
On June 6 the 5 members of the commission unanimously rejected requests from the Colorado Community College System and History Colorado to reverse the impending tax cut. (Prior to Amendment 50 25% of the gaming tax revenue went to historic preservation. Passage of Amendment 50 in 2008 empowered local voters in gaming communities to increase the bet limit from $5 to $100 with 78% of the resulting increased tax revenue going to community colleges.)
Governor John Hickenlooper was unhappy with the casino tax rate cut, especially given the state's current budget woes. On July 6 he reminded us that the commission members serve “at the pleasure of the governor” with his decision to replace the entire commission. Hickenlooper was already due to replace two of the members whose terms expired in early July.
The rules for reversing the casino tax rate cut are unclear. It may be that the new commission can just vote to reverse it. It is clear, however, that Amendment 50 prohibits the commission from setting any tax rate ABOVE the previous level (in effect since July 1, 2008). A statewide vote of the electorate is required to increase casino tax rates above the July 1, 2008 level.
Tuesday, October 6, 2009
2008 State Ballot Issues – 11 Months On
In 2008 the voters of Colorado only approved 4 state ballot issues (all constitutional changes): Amendments 50 and 54 and Referenda M and N. The approved referenda were housekeeping referenda to deal with obsolete provisions in our overburdened state constitution. Below are some follow-up comments on a few of the 2008 state ballot issues from the perspective of October 2009.
Amendment 50 – approved by voters (59% yes to 41% no)
Limited Gambling in Central City, Black Hawk and Cripple Creek
Seventy-eight percent of the tax revenue increase from this amendment goes toward community colleges. David Skaggs was the Executive Director of CO Department of Higher Ed and lobbied hard for passage of Amendment 50. On Sept 11, 2009 David Skaggs resigned from his position citing an irreconcilable difference with the governor.
Amendment 54 – approved by voters (51% yes to 49% no)
Campaign Contributions from Certain Government Contractors
In June Denver Judge Catherine Lemon temporarily halted implementation of Amendment 54. The Colorado Attorney General appealed the ruling to the State Supreme Court. The case has been fast-tracked and arguments will begin in the fall.
Colorado Independent article on Amendment 54
http://coloradoindependent.com/36511/colorado-supreme-court-fast-tracks-clean-government-amendment-case
Amendment 59 – rejected by voters (45% yes to 55% no)
Education Funding and TABOR Rebates
There are several big constitutional constraints on our state budget. Amendment 59 would have gotten rid of the Amendment 23 and TABOR rebate handcuffs, but voters rejected it. Meanwhile, the state budget situation is even bleaker today than a year ago. To help solve the budget problems, legislators used a loophole in the School Finance Act (SB 256) to delay until January 2010 some of the Amendment 23 funding. In January we will know if the delayed funding is actually available.
A column by Kevin Holst about Amendment 23
http://www.examiner.com/x-9202-Denver-Republican-Examiner~y2009m5d6-Amendment-23-and-the-new-fiscal-crisis-factor
Referendum O – rejected by voters (48% yes to 52% no)
Citizen-Initiated State Laws
Ref O proposed constitutional changes to the initiative process. It was rejected by voters, but since then a new law, HB 1326 (Integrity of Citizen-Initiated Petitions), makes many statutory changes to the initiative process including changing the way that state issues are presented on the ballot. Changes to the constitution will be called amendments and changes to the statutes will be called propositions.
Text of HB 1326
http://www.leg.state.co.us/CLICS/CLICS2009A/csl.nsf/fsbillcont3/5A4C8A345E184B5487257537001A32E4?Open&file=1326_enr.pdf
Amendment 50 – approved by voters (59% yes to 41% no)
Limited Gambling in Central City, Black Hawk and Cripple Creek
Seventy-eight percent of the tax revenue increase from this amendment goes toward community colleges. David Skaggs was the Executive Director of CO Department of Higher Ed and lobbied hard for passage of Amendment 50. On Sept 11, 2009 David Skaggs resigned from his position citing an irreconcilable difference with the governor.
Amendment 54 – approved by voters (51% yes to 49% no)
Campaign Contributions from Certain Government Contractors
In June Denver Judge Catherine Lemon temporarily halted implementation of Amendment 54. The Colorado Attorney General appealed the ruling to the State Supreme Court. The case has been fast-tracked and arguments will begin in the fall.
Colorado Independent article on Amendment 54
http://coloradoindependent.com/36511/colorado-supreme-court-fast-tracks-clean-government-amendment-case
Amendment 59 – rejected by voters (45% yes to 55% no)
Education Funding and TABOR Rebates
There are several big constitutional constraints on our state budget. Amendment 59 would have gotten rid of the Amendment 23 and TABOR rebate handcuffs, but voters rejected it. Meanwhile, the state budget situation is even bleaker today than a year ago. To help solve the budget problems, legislators used a loophole in the School Finance Act (SB 256) to delay until January 2010 some of the Amendment 23 funding. In January we will know if the delayed funding is actually available.
A column by Kevin Holst about Amendment 23
http://www.examiner.com/x-9202-Denver-Republican-Examiner~y2009m5d6-Amendment-23-and-the-new-fiscal-crisis-factor
Referendum O – rejected by voters (48% yes to 52% no)
Citizen-Initiated State Laws
Ref O proposed constitutional changes to the initiative process. It was rejected by voters, but since then a new law, HB 1326 (Integrity of Citizen-Initiated Petitions), makes many statutory changes to the initiative process including changing the way that state issues are presented on the ballot. Changes to the constitution will be called amendments and changes to the statutes will be called propositions.
Text of HB 1326
http://www.leg.state.co.us/CLICS/CLICS2009A/csl.nsf/fsbillcont3/5A4C8A345E184B5487257537001A32E4?Open&file=1326_enr.pdf
Thursday, September 25, 2008
Amendment 50 -- Limited Gaming in Central City, Black Hawk, and Cripple Creek
In 1990 Colorado voters approved a constitutional amendment allowing limited gambling in three mountain communities. This ballot issue would allow the communities to raise the maximum single bet from $5 to $100 and allow expanded hours and gaming options. The expected tax revenue increase would go toward community colleges (78%) and the affected towns and counties (22%).
Required CONSTITUTIONAL change -- CHANGES Section 9 of Article XVIII
Recommendation: lean no
I find it ridiculous that we have gaming limits spelled out in our state constitution. I’d vote in a minute to have the entire gaming portion of the constitution changed to statute. Meanwhile, community colleges in Colorado are underfunded, but, aside from the constitutional vs statutory question, I don’t like the proposed solution for the following reasons. During your education and especially if you study probability, you learn that gambling is a losing proposition. What kind of signal are we sending students by using gambling taxes to fund education? In addition, as long as bet limits are $5, one could argue that money spent in the gaming towns is more a form of entertainment than serious gambling. Some say that we should let grownups decide for themselves if they want to gamble (and they certainly can gamble any time on the stock market), but this proposal wouldn’t affect just individuals. It would affect whole communities. At least this proposal would allow the residents of the affected communities to determine their own fate.
Website for Yes side (Coloradans for Community Colleges)
http://sayyeson50.com/
Website for No side
http://keepvegasout.com/
Amendment 50 (Approved ballot title below)
Limited Gaming in Central City, Black Hawk, and Cripple Creek
SHALL THERE BE AN AMENDMENT TO THE COLORADO CONSTITUTION CONCERNING VOTER-APPROVED REVISIONS TO LIMITED GAMING, AND, IN CONNECTION THEREWITH, ALLOWING THE LOCAL VOTERS IN CENTRAL CITY, BLACK HAWK, AND CRIPPLE CREEK TO EXTEND CASINO HOURS OF OPERATION, APPROVED GAMES TO INCLUDE ROULETTE AND CRAPS OR BOTH, AND MAXIMUM SINGLE BETS UP TO $100; ADJUSTING DISTRIBUTIONS TO CURRENT GAMING FUND RECIPIENTS FOR GROWTH IN GAMING TAX REVENUE DUE TO VOTER-APPROVED REVISIONS IN GAMING; DISTRIBUTING 78% OF THE REMAINING GAMING TAX REVENUE FROM THIS AMENDMENT FOR STUDENT FINANCIAL AID AND CLASSROOM INSTRUCTION AT COMMUNITY COLLEGES ACCORDING TO THE PROPORTION OF THEIR RESPECTIVE STUDENT ENROLLMENTS, AND 22% FOR LOCAL GAMING IMPACTS IN GILPIN AND TELLER COUNTIES AND THE CITIES OF CENTRAL CITY, BLACK HAWK, AND CRIPPLE CREEK ACCORDING TO THE PROPORTION OF INCREASED TAX REVENUE FROM VOTER-APPROVED REVISIONS IN EACH CITY OR COUNTY; AND REQUIRING ANY INCREASE IN GAMING TAXES FROM THE LEVELS IMPOSED AS OF JULY 1, 2008 TO BE APPROVED AT A STATEWIDE ELECTION, IF LOCAL VOTERS IN ONE OR MORE CITIES HAVE APPROVED ANY REVISION TO LIMITED GAMING?
Yes ________________ No ________________
To see the full text of the proposed measure, click here, then click on “2008 State Ballot Information Booklet” at the top of the page.
Required CONSTITUTIONAL change -- CHANGES Section 9 of Article XVIII
Recommendation: lean no
I find it ridiculous that we have gaming limits spelled out in our state constitution. I’d vote in a minute to have the entire gaming portion of the constitution changed to statute. Meanwhile, community colleges in Colorado are underfunded, but, aside from the constitutional vs statutory question, I don’t like the proposed solution for the following reasons. During your education and especially if you study probability, you learn that gambling is a losing proposition. What kind of signal are we sending students by using gambling taxes to fund education? In addition, as long as bet limits are $5, one could argue that money spent in the gaming towns is more a form of entertainment than serious gambling. Some say that we should let grownups decide for themselves if they want to gamble (and they certainly can gamble any time on the stock market), but this proposal wouldn’t affect just individuals. It would affect whole communities. At least this proposal would allow the residents of the affected communities to determine their own fate.
Website for Yes side (Coloradans for Community Colleges)
http://sayyeson50.com/
Website for No side
http://keepvegasout.com/
Amendment 50 (Approved ballot title below)
Limited Gaming in Central City, Black Hawk, and Cripple Creek
SHALL THERE BE AN AMENDMENT TO THE COLORADO CONSTITUTION CONCERNING VOTER-APPROVED REVISIONS TO LIMITED GAMING, AND, IN CONNECTION THEREWITH, ALLOWING THE LOCAL VOTERS IN CENTRAL CITY, BLACK HAWK, AND CRIPPLE CREEK TO EXTEND CASINO HOURS OF OPERATION, APPROVED GAMES TO INCLUDE ROULETTE AND CRAPS OR BOTH, AND MAXIMUM SINGLE BETS UP TO $100; ADJUSTING DISTRIBUTIONS TO CURRENT GAMING FUND RECIPIENTS FOR GROWTH IN GAMING TAX REVENUE DUE TO VOTER-APPROVED REVISIONS IN GAMING; DISTRIBUTING 78% OF THE REMAINING GAMING TAX REVENUE FROM THIS AMENDMENT FOR STUDENT FINANCIAL AID AND CLASSROOM INSTRUCTION AT COMMUNITY COLLEGES ACCORDING TO THE PROPORTION OF THEIR RESPECTIVE STUDENT ENROLLMENTS, AND 22% FOR LOCAL GAMING IMPACTS IN GILPIN AND TELLER COUNTIES AND THE CITIES OF CENTRAL CITY, BLACK HAWK, AND CRIPPLE CREEK ACCORDING TO THE PROPORTION OF INCREASED TAX REVENUE FROM VOTER-APPROVED REVISIONS IN EACH CITY OR COUNTY; AND REQUIRING ANY INCREASE IN GAMING TAXES FROM THE LEVELS IMPOSED AS OF JULY 1, 2008 TO BE APPROVED AT A STATEWIDE ELECTION, IF LOCAL VOTERS IN ONE OR MORE CITIES HAVE APPROVED ANY REVISION TO LIMITED GAMING?
Yes ________________ No ________________
To see the full text of the proposed measure, click here, then click on “2008 State Ballot Information Booklet” at the top of the page.
Subscribe to:
Comments (Atom)