Getting Away with the Big Giveaway: Most Legislators Vote for Casino Tax Rebates
Rob ChambersMany TV shows have been emphasizing the importance of charity, and it appears most Mississippi legislators have taken this lead as well – but not in the true sense of charity. To be charitable means to give to someone in need, ill or helpless, but most Mississippi legislators have chosen to redefine charity to apply to lucrative casino businesses.
In 2007 casinos had revenue in excess of $2.8 billion and for January and February 2008 alone nearly $500 million, but despite these numbers most legislators have chosen to deem the casino industry in need of charity.
The House and Senate initially passed House Bill 1196 that makes casinos beneficiaries of huge tax rebates in the name of “tourism.” But who needs these tax dollars more, private casinos or state agencies that fund care for the infirm, ill or needy? If the answer to this question is not obvious, read on.
If made law, HB 1196 will make provisions for a casino that invests a minimum of $10 million in non-gaming tourism projects like a golf course, marina, theme park, or $40 million in a hotel to receive a tax rebate of 30% of the estimated cost of the project. The rebate will expire when the 30% has been given away to the casino or when 10 years from opening date has been reached, whichever comes first.
For example, if a casino spends $100 million dollars on a tourism project, Mississippi taxpayers could potentially give back 30% of the initial $100 million investment or $30 million to the gambling business within a ten year period.
This translates as a loss of tax revenue. With Mississippi as one of the poorest states – if not the poorest – it makes neither rational nor economic sense to give away millions in tax rebates to benefit luxury or recreational businesses owned by lucrative casinos. This is especially true since our state is currently facing significant budgetary shortfalls in funding necessities like Medicaid.
Last fall Medicaid Executive Director Robert L. Robinson told lawmakers that “Medicaid is facing a nearly $100 million shortfall this fiscal year. The program will need at least an extra $168 million next fiscal year . . . House Medicaid Committee Chairman Dirk Dedeaux said it will need more than $250 million for fiscal year 2009, which begins July 1.” (Shelia Byrd: April 10, 2008; Online, Hattiesburg American.com)
So, while a vast majority of legislators voted for this Big Giveaway to casinos last February and March (only 5 from the House and 16 Senators voted against it), Mississippi taxpayers – yes you – may have to make up this loss or giveaway of tax revenue. You’ll likely be left holding the bag while casinos are Getting Away with the Big Giveaway, but not all hope is lost – yet.
As of today, the bill is in conference where six legislators – three from both the House and Senate – work toward a compromise in the wording of the bill. Very soon they will present the bill before the full House and Senate for approval where a majority vote wins. If either side has a majority vote against HB 1196, then fortunately the bill will die.
Regardless if your legislators voted for the bill the first time they still have an opportunity to VOTE NO or against it. Contact your legislators through the MS Capitol switchboard at 601-359-3770 and encourage them to VOTE NO on HB 1196.