Gaming Expansion Advocates All Over The Board On Casino Tax Rates

FOR IMMEDIATE RELEASE: September 14, 2016

More Proof Voters Can’t Trust Trenton; Assemblyman Caputo Changed Tax Rate & Can’t Make Up Mind

Assemblyman Caputo Negotiates With Himself On Casino Tax Rates. “Assemblyman Ralph Caputo said Tuesday he believes North Jersey casinos, if approved by voters in November, should pay different tax rates based on how much money is invested in each property … For casinos that cost several billion dollars to construct – likely a full-fledged resort with hundreds of hotel rooms, several restaurant and other amenities – operators could pay a tax rate around 15 percent to 20 percent … Caputo said less-expensive properties could afford to pay higher tax rates. For any casino project that costs around $1 billion to build – the minimum investment threshold under the proposed constitutional amendment – operators should pay around a 35-percent to 40-percent tax rate, Caputo said.” (Ryan Hutchins, “Assembly Democrat Proposes Tax Rates For North Jersey Casinos,” Politico New Jersey, 9/13/16)

  • Just Weeks Prior, Caputo Had Stated The Rate Could Be “40 Percent To 60 Percent.” “[L]awmakers seem far apart on the casino tax issue. Caputo suggested in the spring that new casinos could support a 40 percent to 60 percent tax rate, compared to the roughly 8 percent paid in Atlantic City.” (Ryan Hutchins, “Would-Be North Jersey Casino Developers Say Time’s Running Out,” Politico New Jersey, 9/9/16) 
  • This Was A Fact That He Had Also Previously Iterated In The Spring. “Caputo, sponsor of the ballot measure, suggested in the spring that new casinos could support a 40-percent to 60-percent tax rate on gambling revenue, but seems to have come down considerably since then and now believes a ‘tiered’ tax system is needed.” (Ryan Hutchins, “Assembly Democrat Proposes Tax Rates For North Jersey Casinos,” Politico New Jersey, 9/13/16)

Casino Developer Jeff Gural Has Changed What Tax Rate He Would Pay As Well, Lowering His Initial Offer Of 55 Percent. “Gural said last week he would be able to pay a 30-percent to 35-percent tax rate on gambling revenue if his property is one of two casinos up and running in North Jersey. But he would also seek state approval to open a temporary casino on his racetrack property until a larger facility can be finished. If he were to be able to do that, he said, he could pay the tax rate casinos are levied in Pennsylvania: About 55 percent for slot machines and 14 percent for table games.” (Ryan Hutchins, “Assembly Democrat Proposes Tax Rates For North Jersey Casinos,” Politico New Jersey, 9/13/16)

  • Gural Had Previously Been Clear In Saying He Would Pay 55 Percent, Even Stating He Was “Prepared To Pay The Pennsylvania Tax.” “Meadowlands Racing Chairman Jeff Gural says the casino would pay a 55 percent tax rate on winnings. Atlantic City’s casinos pay 8 percent. ‘I think people will be very pleasantly surprised at the project we will unveil, because I’m prepared to pay the Pennsylvania tax rate, which is seven times higher than the rate in Atlantic City,’ Gural said Tuesday.” (Wayne Parry, “Hard Rock, Meadowlands Propose Long-Awaited Plan For Casino At Northern New Jersey Racetrack,” The Associated Press, 5/26/15)

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Trenton’s Bad Bet is a diverse collection of concerned New Jersey community leaders, unions, businesses and residents that will work to oppose the New Jersey Casino Referendum that seeks to expand gaming into North Jersey.

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