HOBART--The City Council Wednesday voiced its opposition to possible legislation that would reduce the amount of revenue it receives from casinos from admission taxes.
The council unanimously approved a resolution stating no legislation should be considered or passed that would reduce the admission taxes received by Lake County and its communities.
The action was taken as talk of eliminating the fee at casinos and other measures swirls downstate.
With revenues continuing to drop at the state’s casinos due to increased competition from neighboring states and a still struggling economy, casino operators are asking the state for help in reducing some of their costs.
Some operators are asking the Legislature’s public policy study committee to consider eliminating the $3 admission tax for everyone who enters a casino boat, even if they aren’t gambling. Another possibility is reducing the tax on casino winnings that now ranges from 40 percent to 15 percent depending on annual revenue.
“I understand that the casinos are important, and need help, but simply stopping the admission fee is not the answer,” said Councilman Dave Vinzant, D-4th, who brought the resolution to the council.
The resolution also calls for state legislators from Northwest Indiana to work together to find other ways to help its casino industry without reducing the admission tax.
Clerk-Treasurer Deborah Longer said the city now gets about $350,000 a year from the admissions tax, which is put in a separate fund and used for paving streets, other infrastructure work and to purchase city vehicles.
“Paving has been a zero line item for the past six years. Without the tax, the paving wouldn’t have gotten done,” Mayor Brian Snedecor said.
Longer said in the casinos’ hey day -- before the recession, video gaming in Illinois bars and several new casinos in surrounding states -- the casino admission tax brought in $550,000 to the city. During the worst of the recession it was down to less than $350,000, Longer said.