Local lawmakers in New York City are urging Governor Kathy Hochul to intervene in a situation regarding the tax rate for the city’s first full casino, Resorts World New York City. The proposed tax rate of 72% on slot revenues is being criticized as excessively high.
1. High Tax Rate Concern: A letter from local Democrats calls for Hochul to block the 72% tax rate imposed on slot revenues, which lawmakers argue would be detrimental to the casino.
2. Legislators' Stance: State Senator Joe Addabbo expressed that the tax rate is unreasonable and emphasized the need for urgent action from the governor's office as the Gaming Commission reports to her.
3. Resorts World Background: Resorts World initially began as a slot parlor in 2011 and is now offering live table games after receiving a full state license. They had proposed a 56% tax rate while applying for their license.
4. Tax Structure Disputes: The Gaming Commission states that the 56% tax rate does not include separate obligations for the horse racing industry, which adds another 16%, leading to the proposed 72%.
5. Comparison with Other States: The current tax rate for Resorts World is significantly higher than rates in other states, like New Jersey (9.25%) and Michigan (19%).
6. Job and Investment Impact: Lawmakers, including Rep. Gregory Meeks, are concerned that the uncertainty around the tax rate could affect billions of dollars in private investments and thousands of jobs, undermining local businesses.
7. Call for Accountability: The lawmakers argue that while the casino should meet its commitments, the state should honor the original terms under which these commitments were made.
8. State's Position: A spokesperson for Hochul has declared that tax rates have always been distinct from payments needed for racing support, stressing the priority of generating revenue for public services such as education.
The debate over the high casino tax rate for Resorts World New York City continues, with local lawmakers requesting immediate action from Governor Hochul. They argue that a resolution is crucial for the casino's future operations, job creation, and economic impact in the region. Both lawmakers and the Gaming Commission are maintaining their positions, leading to a challenging situation as stakeholders await a decision.
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