Casino backers deny tax loophole
By AMANDA SMITH-TEUTSCH / Tribune ChronicleBackers of the state constitutional amendment to allow a casino resort in southern Ohio say the argument that their tax liability could decrease to zero is false.
"We will have the highest tax rate of any business in Ohio," said Rick Lertzman of MyOhioNow.com. He and his business partner, Dr. Bradford Pressman, formed a partnership to develop the casino resort in Clinton County. Pressman is a former podiatrist; Lertzman said he operated the family auction house and business liquidation firm. Their political action committee is based in Beachwood.
Opponents say the way the ballot language is worded, taxes on the Clinton County casino could be decreased to levels equal to that of a second casino if one opens in the state. Since American Indian casinos are not subject to taxes, that means the Ohio casino could pay no taxes as well, said Rob Walgate of the Bayvillage-based Vote No On Issue 6 PAC.
"The idea that our taxes will go down to zero is based on the fantasy that an Indian tribe in Oklahoma can transfer to Ohio," Pressman said. There are no federally recognized American Indian tribes in Ohio, he said. Tribes must have this recognition before applying for trust land in the state, and he said the federal government has made it difficult for new gaming lands to be approved. A tribe was last federally recognized in Ohio in the 1830s, he said, and there are no American Indian reservations in Ohio.
He said the constitutional amendment sets 25 percent as the bottom line for tax reductions, not zero percent.
Lertzman said that in addition to the 30 percent gaming receipts tax, the casino is also subject to state income and employer taxes, federal taxes, property and school taxes in addition to the state Commercial Activity Tax.
Walgate said his group is also opposed to the fact that the issue is being incorporated into the state constitution.
"We are opposing it for a number of reasons, but also due to the fact that an out-of-state business developer has placed his own personal business plan in our state constitution. The constitution shouldn't be used for that," Walgate said.
Lertzman said there is no other way to operate a casino in Ohio outside the constitutional amendment, and much of the opposition to the statewide issue is being financed by the Penn National Gaming company, which operates a casino in the market where the proposed casino would be built. He also noted that he and his partner formed their business in Ohio, and the bulk of the profits would be paid to the state of Ohio.
Walgate said that while the gaming company is bankrolling TV ads, they are not financing his group which he described as a grass-roots effort. "We have never taken money from the gambling industry," he said.
The League of Women Voters' advocacy arm is opposing the measure for a different reason.
"Our tax policy states that any tax changes should be beneficial evenly to the entire state," said Deidra Reese, executive director of the Ohio League of Women Voters. The ballot issue assigns 10 percent of the gross receipts tax to Clinton County, where the casino will be built, with the other 90 percent being distributed to the other counties in Ohio.
The Ohio Fraternal Order of Police stated its opposition on its Web site.
"While our organization does not oppose gaming in Ohio, we have serious concerns about the issue from a law enforcement standpoint," said FOP Ohio President Nick DiMarco on the group's Web site. The issue does not address the problems of law enforcement the casino would bring. There are no provisions for crime impact studies, he said, and no funding mechanism for law enforcement agencies.
Lertzman said counties can use the money as they see fit, including for additional law enforcement. Studies paid for by his partnership show little crime attached to casinos, he said.
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GoBrowns
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10-11-08 10:47 AM
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VOTE YES ISSUE 6!!!!!!!!!!!!!!!!! I hope the casino comes back around here.
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ChinChin
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10-09-08 1:17 PM
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Churches don't pay taxes. Neither should casinos. :)
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nomtnoggin
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10-08-08 12:24 PM
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Do these casino backers think we are all stupid? I'm sure they are all aware that an indian tribe was trying to prove their rights to build a casino in Ohio just a couple of years ago. You can bet that tribe will be back to try again if this goes through. And if the backers planned to at least pay the 25%, as stated as the minimum reduction allowed by state constitution, they wouldn't have worded it as they did, that they could pay the lower tax amount of another casino if one opened. HELLO!They're counting on it and will help back it I'm sure. Maybe the casino would be good for jobs and tax revenue, but I as it is the same people are going to reap the most benefits at our expense as usual. I think we should vote no until the wording about the taxes is changed so that it is a sure bet that we Ohioans will benefit the most we can. It's our chance to tell the big shots no until they do it OUR way.
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bruskii
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10-08-08 10:39 AM
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another non productive way to get tax moneyes. That ain;t working money for nothing & your chix for free .Casinoes just another way to tax poor peoples .
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moonbeam
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10-08-08 8:15 AM
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Screw the taxes, we need the JOBS.
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OldManGrump2
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10-08-08 6:54 AM
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The Casino Backers are lying. They put so many loopholes that includes paying NO taxes in their proposal that I will vote NO.
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