To the consternation of many, the Mississippi Senate yesterday voted to charge the Gulf Coast casinos a premium of an extra 1% of gross revenue for rebuilding onshore. It has also delayed the signing of the bill by the Mississippi governor with a motion in the Senate to reconsider the 800 feet inland siting of the casinos. Both the House and the Senate had passed the bill but the Senate wants to ensure that casinos continue to pay into a tidelands fund.

Casinos are charged a tidelands lease that provides in the region of $7 million annually for piers, boat launches, recreational and conservation projects. There is now argument over whether the tidelands bill will create the level playing field that Mississippi Secretary of State claims. At present the Mississippi casinos pay 12% tax and the additional 1% fee would be charged both to casinos that move inland from the state-owned tidelands and to those that remain over water.

Some see the tax increase as unhelpful in the wake of Hurricane Katrina as casino operators seek finance to rebuild. Mississippi riverboat casinos will not have to pay the additional tax and the tidelands bill has been called a disincentive to rebuild. Senators maintain that the plan is ‘equitable’ and would generate money ‘in perpetuity’ for conservation and recreation.

The House and casino operators are angry that the result of the special session aimed at getting Gulf Coast casinos rebuilt on safer onshore sites is now on hold. A meeting to resolve the differences between the House and Senate is scheduled for today. (E-10.06.05)

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