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Local Aid and Finance Report disputes casino revenue claims
Revenue generated by casinos for property tax relief and road and bridge repair would be significantly less than the $400 million figure cited by Gov. Deval Patrick, according to a report from the Massachusetts Taxpayers Foundation released on Oct. 25.
The foundation’s report, which analyzes the revenue projections in the governor’s plan to license three casinos in Massachusetts, raises a variety of questions about the revenues and benefits from the casinos, including an assessment of the impact on property taxes and transportation needs.
The foundation differs with the governor’s estimates of gross gaming revenues from three casinos as well as a forecast from Dr. Clyde Barrow presented to the administration.
The governor’s plan anticipates $2.05 billion in gross gaming revenues, which would generate $544 million in revenue to the state annually. After deducting funds for the three areas of mitigation included in the governor’s proposal – 2.5 percent of gross gaming revenues for both host communities and public health, as well as holding the Lottery harmless – the Taxpayers Foundation concludes that there would be about $308 million for property tax credits and transportation funding.
Barrow’s forecast of $1.5 billion in gross gaming revenues would generate $405 million in annual revenues, but only $186 million in net proceeds after funding the mitigation requirements.
The foundation report includes:
• An analysis of the assumptions leading to the administration’s estimates of gross gaming revenues from three casinos
• An analysis of how much money would be needed for the three categories of mitigation – host communities, public health, and the Lottery – included in the administration’s plan
• An analysis of the impact that the new revenues would have on transportation funding and property tax relief for which the administration proposes to earmark the revenues
The foundation is neither for nor against resort casinos in Massachusetts and did not attempt to conduct a full analysis of costs and benefits.
• Massachusetts Taxpayers Foundation analysis of governor’s casino proposal (64K PDF)
Local Aid and Finance Report disputes casino revenue claims
Report disputes casino revenue claims
Revenue generated by casinos for property tax relief and road and bridge repair would be significantly less than the $400 million figure cited by Gov. Deval Patrick, according to a report from the Massachusetts Taxpayers Foundation released on Oct. 25.
The foundation’s report, which analyzes the revenue projections in the governor’s plan to license three casinos in Massachusetts, raises a variety of questions about the revenues and benefits from the casinos, including an assessment of the impact on property taxes and transportation needs.
The foundation differs with the governor’s estimates of gross gaming revenues from three casinos as well as a forecast from Dr. Clyde Barrow presented to the administration.
The governor’s plan anticipates $2.05 billion in gross gaming revenues, which would generate $544 million in revenue to the state annually. After deducting funds for the three areas of mitigation included in the governor’s proposal – 2.5 percent of gross gaming revenues for both host communities and public health, as well as holding the Lottery harmless – the Taxpayers Foundation concludes that there would be about $308 million for property tax credits and transportation funding.
Barrow’s forecast of $1.5 billion in gross gaming revenues would generate $405 million in annual revenues, but only $186 million in net proceeds after funding the mitigation requirements.
The foundation report includes:
• An analysis of the assumptions leading to the administration’s estimates of gross gaming revenues from three casinos
• An analysis of how much money would be needed for the three categories of mitigation – host communities, public health, and the Lottery – included in the administration’s plan
• An analysis of the impact that the new revenues would have on transportation funding and property tax relief for which the administration proposes to earmark the revenues
The foundation is neither for nor against resort casinos in Massachusetts and did not attempt to conduct a full analysis of costs and benefits.
• Massachusetts Taxpayers Foundation analysis of governor’s casino proposal (64K PDF)
Written by MMA Publications/Web Director John Ouellette
