Illinois General Assembly amends Chicago Casino Tax Structure
Pushing the long-awaited Chicago casino project closer to reality, members of the Illinois General Assembly amended casino tax structure for the city after state lawmakers agreed to trim down its tax responsibilities.
The Windy City businesses have been under lockdown since mid of March this year, after state authorities issued “stay-at-home” order as part of the efforts to curb deadly corona virus pandemic that has infected millions of Americans and left many of them dead.
Amendments in the tax structure for Chicago casinos was part of a roughly $40 billion proposed budget that got the Illinois General Assembly’s approval over the past weekend. The Chicago casino measure, House Bill 516, was made part of that budget package. Chicago Mayor Lori Lightfoot (Democrat) campaigned aggressively to make lawmakers to reconsider how the proposed Chicago casino will be licensed and taxed.
Under Illinois original law, the Chicago casino would be taxed at a rate of 72 per cent. The effective tax on the entertainment property’s gross gaming revenue (GGR) is based on a 38.7 per cent tax rate on casino win, in addition to a 33.3 per cent “privilege tax” that funds pensions for first responders. The review was conducted by the Las Vegas gaming consultancy Union Gaming that was commissioned by Illinois Gaming Board (IGB).
Along with the previous exorbitant tax rate, the proposed Chicago casino operator would be required to pay $15 million and $120 million in upfront license fee and in gambling position fees, respectively. In addition, it would have to pay $30,000 in one-time fee.
The tax restructuring is, however, expected to decrease the amount of tax revenue to be received by Illinois by $850 million to $500 million per annum.
Commenting on tax restructuring, bill sponsor Rep. Bob Rita (D) said, “The idea is to make this work for Chicago, so that we could fund a vertical capital bill, put people to work. Not only for Chicago, but for everywhere in the entire state of Illinois… This is good for everyone for jobs and development – having a Chicago casino be real.”
The amendment in Chicago casino tax structure was part of Illinois lawmakers and Democratic Governor J.B. Pritzker’s “Rebuild Illinois” plan, which proposes massive spending on infrastructure to provide a much-needed boost to local economy. Chicago entertainment properties have thus far been discouraged by excessive burden of taxes. That is why, lawmakers decided to trim down the exorbitant tax rates to make Chicago attractive to casino operators.
- Development of web resources
- Hyundai’s luxury brand Genesis to make European debut with launch of Electrified G80
- Canoo seeks patent to protect modular & customizable EV platform architecture
- Democratic Senator Tom Carper wants Biden administration to ban gas-powered cars by 2035
- Tesla doesn’t spend money on ‘manipulating’ public opinion: Elon Musk
New Zealand News
- Tesla offering new discounts & perks in China amid negative press
- Electric Vehicle Council slams Victoria Government for proposed punitive mileage tax on electric cars
- Chinese EV brand Ora unveils VW Beetle-inspired electric car Punk Cat
- Swapping personal car for e-bicycle saved over $50,000 in just 7 years: San Francisco woman
- Hyundai Motor Corp to create ultra-fast EV charging network E-pit in Korea
The Health Department of Northwest Michigan has...Read More
American gaming and hospitality giant Boyd Gaming...Read More
An American citizen who had boasted in front of an...Read More
Pushing the long-awaited Chicago casino project...Read More
A study was conducted to evaluate the effect a...Read More
Tech biggie Google’s recent filing with the US...Read More