Bill Would Raise Tax On Gambling Revenue

A bill to amend the Riverboat Gambling Act to impose an additional tax on adjusted gross receipts after the payment of all local taxes imposed under the act has been submitted to the Illinois House Rules Committee for consideration.

If it makes it through the legislative process and is signed by the Governor, the bill would raise the tax rate on riverboat gambling revenues.

The tax rate would effectively limit the licensee to 20 percent of adjusted gross receipts after payment of local taxes.

The current rate of return for riverboat license holders runs up to 500 percent. The rate in thriving private industry is 20 percent, according to the bill's sponsor.

HB 4094 is sponsored by state Rep. Tom Johnson (R-50).

Another bill will be presented that will allocate the new revenues to removing the toll road fees and easing homeowners' tax burdens, according to its backers.

"It is interesting to note that several months ago, when the Family Taxpayers Network first proposed this legislation, word was leaked to Gov. Ryan and triggered him into his hasty embracing of eliminating the toll roads," said Jack Roeser, president and founder of the FTN. "He did not have the money to accomplish that. This bill solves that problem."

Roeser said HB 4094 will also reduce corruption in the gambling industry as well as eliminating the toll roads. In the last election, Roeser said, the gambling industry spent nearly $2 million to elect their candidates.