Iowa Gov. Terry Branstad has intended a major tax hike on the country’s casino business as a sector of his budget introduced to the Legislature a week ago. According to his suggestion the gambling incomes generated by Iowa’s riverboat and racetrack casinos will be imposed 36 percent tax. Nowadays Iowa’s casinos are imposed by a gambling tax which is equal to 22 percent. The two racetrack casinos in Altoona and Council Bluffs have to pay a state tax that is 24 percent on their fixed total receipts from casino operations. Assistants of governor informed that the enlarged casino taxes will be used to finance a $200 million diminishing in Iowa corporate taxes, which compose at the rate of about 6 percent of country’s gainings now.
If governor’s proposal is accepted, Iowa will probably have a playing tax frame that is alike Illinois, as it is widely known, it has one of the largest gaming tax rates in the whole state. Union Gaming Group Principal Bill Lerner told investors that if the tax rates of casinos are higher, it will become possible to pay more money and attention to promotions, bonuses, advertising and marketing. Lerner reported that in consideration of the fact that almost all the casinos in Iowa are the greatest tourist sights and destinations, it would be logical to suppose that there will be a lot of opposition to Gov. Branstad’s new budget proposal. “We do suspect that a gaming tax increase would be partially offset by the proposed corporate tax cut”, – he finished a report.