Disposition of Revenues from Casino Taxes: a Projection

 

Goya:  El Sueno de Razon

Goya: El Sueno de la Razon Produce Monstruos

 

 

 

Disposition of Revenues to New York State Residents from Casino Taxes per Upstate New York Gaming Economic Development Act of 2013: a Projection

 

 

 

On Monday, Sept 23 2013 at 12:01 AM EDT,  Coalition Against Gambling in New York released a report of high interest to all New York State voters and taxpayers.  Governor Cuomo has touted the proposed constitutional amendment that would legalize casinos as a benefit to all New Yorkers.  Now dubbed “Proposal One,”  it will be presented with heavy bias on the ballot for  a “yes” vote. Click on the link right below to read opinion of the NY Daily News about the ballot langauge.  http://www.nydailynews.com/opinion/house-wins-article-1.1454344

The framers of “Proposal One”  must hope voters won’t have thought about pros and cons until they enter the booth.  To counter this deliberate neglect by the casino promoters, we made conservative assumptions to project the impact of the amendment’s  passage on property tax bills around  the state. 

In our projections, if the amendment passes, the  benefits (as property tax relief or aid to education) to individuals from taxes on casinos’ gaming revenue would vary enormously (by more than twenty-fold) from place to place.   The size of these disparities is not rationalized in the legislation that prescribes them.   These tax relief measures if enacted  would hardly change the personal property tax situation for a majority of the state’s population.   We project, for example,  that if 80% of  the taxes paid to the state by four  exceptionally busy new casinos  were disbursed uniformly to the  whole state entirely as property tax relief, residents of “downstate” (NYC, L.I., Westchester, Rockland and Putnam) would have just $20  of relief per adult per year.    The “relief” to more than 99% of taxpayers if the amendment passes would  be less than the conservatively-projected  increase in hidden quantifiable social costs of legalized gambling to be expected from adding “up to seven”  new casinos.  In short, for almost all New Yorkers in relation to taxes cons >> pros.

Readers can develop their own scenarios and projections using our straightforward methods.  

Click on the link to see a pdf of the 22-page report, divided into Summary, Introduction, Methods, Results, Discussion, Conclusions and Appendix.     UNYGEDASept22_Final

This version varies slightly from that sent to members of the press and other media on Sept 18 in advance of release to the public in early morning of Monday Sept 23.  Changes are shown at the end.  

Opinions in this piece are those of the authors and do not necessarily reflect those of any or all other members of Coalition Against Gambling in New York. Permission is hereby granted to reproduce this post  in whole or part as long as there is a citation to the permalink above. Corresponding author is Dave Colavito ddcolavito@gmail.com .  You may request a pdf version of the report by e-mail.