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2003 House Bill 4612: Raise Detroit casino tax

Public Act 306 of 2004

  1. Introduced by Rep. Rich Brown (D) on May 1, 2003, to allow horse racing theaters and betting at casinos. The bill includes regulations, licensure and tax provisions, and penalties. It is part of a racetrack gambling package ("racino") comprised of House Bills 4609 to 4612. Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill would require a three-quarters vote of the House and Senate.
    • Referred to the House Agriculture and Resource Management Committee on May 1, 2003.
      • Reported in the House on May 20, 2003, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
      • Substitute offered in the House on May 22, 2003, to replace the previous version of the bill with one recommended by the committee which reported it. The substitute incorporates changes resulting from negotiations and deliberations related to the specific regulations on the proposed new gambling, and on how the revenue from it will be divided. The substitute passed by voice vote in the House on May 22, 2003.
    • Substitute offered by Rep. Larry Julian (R) on May 4, 2004, to replace the previous version of the bill with one that would also increase the state tax on Detroit casinos, from 18 percent to 36 percent. See House-passed bill for details. The substitute passed by voice vote in the House on May 4, 2004.
    • Substitute offered by Rep. Larry Julian (R) on May 12, 2004, to replace the previous version of the bill with one that would also increase the state tax on Detroit casinos, from 18 percent to 36 percent. See House-passed bill for details. This substitute also revises details but does not change the substance of the previous substitute, which first inserted the 36 percent Detroit casino tax. The substitute passed by voice vote in the House on May 12, 2004.
    • Amendment offered by Rep. Ken Daniels (D) on May 12, 2004, to revise details of the formula by which Detroit would get 29.6 percent of the increased tax revenue. The amendment passed by voice vote in the House on May 12, 2004.
  2. Passed 85 to 20 in the House on May 12, 2004, to increase the state tax on Detroit casinos, from 18 percent to 36 percent, and to allow horse racing theaters and betting at casinos. The higher tax and increased gambling is projected to increase state revenue by $90 million a year. Of this, 29.6 percent would go to Detroit, 47.5 percent would go to schools, and 22.9 percent would go to the state general fund. Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill would require a three-quarters vote of the House and Senate.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on May 13, 2004.
    • Referred to the Senate on May 13, 2004.
  4. Failed 18 to 19 in the Senate on June 17, 2004, to increase the state tax on Detroit casinos, from 18 percent to 36 percent, and to allow horse racing theaters and betting at casinos. The higher tax and increased gambling is projected to increase state revenue by $90 million a year. Of this, 29.6 percent would go to Detroit, 47.5 percent would go to schools, and 22.9 percent would go to the state general fund. Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill would require a three-quarters vote of the House and Senate.
    Who Voted "Yes" and Who Voted "No"

  5. Received in the Senate on July 6, 2004.
    • Substitute offered by Sen. Bob Emerson (D) and Sen. Ken Sikkema (R) on July 6, 2004, to replace the previous version of the bill with one that increases the casino tax by six percent, strips out the horse racing theaters and betting at casinos, and makes other changes. See Senate-passed version. The substitute passed by voice vote in the Senate on July 6, 2004.
    • Amendment offered by Sen. Bob Emerson (D) on July 6, 2004, to clarify that the state's portion of the lower tax rate assessed after the Detroit casinos build their permanent facilities and hotels will go entirely into the general fund. The amendment passed by voice vote in the Senate on July 6, 2004.
  6. Failed 28 to 8 in the Senate on July 6, 2004, to increase the state tax on Detroit casinos, from 18 percent to 24 percent, with the state getting four percent of the increase and the city getting two percent.
    Who Voted "Yes" and Who Voted "No"

  7. Received in the Senate on July 6, 2004, a motion to vote again on the tax increase. The vote then took place after the Senate Majority Leader issued a "call of the Senate," meaning all senators must remain on or return to the floor. The State Police were dispatched to retrieve two senators absent for the day (Bernero and Scott), but this was canceled after Sen. Olshove switched his vote from "no" to "yes," thereby producing the 29th "yes" vote.
    • Amendment offered by Sen. Gilda Jacobs (D) on July 6, 2004, to tie-bar the bill to House Bill 4610, meaning this bill cannot become law unless that one does also. HB 4610 would authorize the placement of slot machines in horse racetracks ("racinos"). The amendment failed by voice vote in the Senate on July 6, 2004.
    • Amendment offered by Sen. Bob Emerson (D) on July 6, 2004, to further clarify that the four percent state portion of the tax increase would only drop to one percent if the Detroit casinos build hotels as part of their permanent facilities. The amendment passed by voice vote in the Senate on July 6, 2004.
  8. Passed 29 to 7 in the Senate on July 6, 2004, to increase the state tax on Detroit casinos, from 18 percent to 24 percent, with the state getting four percent of the increase and the city getting two percent. This is projected to increase state revenue by $49 million a year. If the Detroit casinos build permanent facilities and hotels, the four percent state portion of the tax increase would drop to one percent. (Detroit will still get a two percent increase based on a previous and separate deal to increase its take from the casinos beginning in 2006). Because it would amend a law adopted by a vote of the people (authorizing he Detroit casinos), the bill requires a three-quarters vote of the House and Senate.
    Who Voted "Yes" and Who Voted "No"

  9. Received in the House on July 6, 2004.
  10. Failed 15 to 89 in the House on July 6, 2004, to concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.
    Who Voted "Yes" and Who Voted "No"

  11. Received in the House on July 14, 2004.
  12. Failed 0 to 107 in the House on August 4, 2004, to raise the state tax on Detroit casinos, from 18 percent to 24 percent through 2005, and then drop it to 22 percent in 2006. This is projected to boost state revenue by $49 million a year. If the Detroit casinos do not build permanent facilities and hotels, the tax would rise by one percentage point per year in 2009, 2010 and 2011. If the race track slot machines (“racinos”) proposed by House Bill 4610 are allowed, the tax would revert to the current level.
    Who Voted "Yes" and Who Voted "No"

  13. Received in the Senate on August 4, 2004.
  14. Failed 28 to 6 in the Senate on August 4, 2004, to increase the state tax on Detroit casinos, from 18 percent to 24 percent through 2005, and then drop to 22 percent in 2006. This is projected to increase state revenue by $49 million a year. If the Detroit casinos do not build permanent facilities and hotels, the tax would rise by one percentage point per year in 2009, 2010 and 2011. If the race track slot machines (“racinos”) proposed by House Bill 4610 are allowed, the tax would revert to the current level.
    Who Voted "Yes" and Who Voted "No"

  15. Received in the Senate on August 4, 2004.
    • Moved to reconsider in the Senate on August 4, 2004, a previous vote to defeat the second conference report on the bill. The motion passed by voice vote in the Senate on August 4, 2004.
  16. Passed 30 to 6 in the Senate on August 4, 2004, a second conference report, which raises the tax on Detroit casinos from 18 percent to 24 percent, increasing state revenue by $49 million a year. If the casinos do not build permanent facilities and hotels, the tax would be increased another three percent. If the "racinos” proposed by House Bill 4610 are allowed, the tax would drop to the current level. Some $6 million of the new revenue would go to agricultural interests such as horse race prizes, fairs, and 4-H clubs. Because it amends an initiated law passed by the people (authorizing he Detroit casinos), a three-quarters vote of the House and Senate is required.
    Who Voted "Yes" and Who Voted "No"

  17. Received in the House on August 4, 2004.
  18. Passed 93 to 15 in the House on August 4, 2004, a second conference report, which raises the tax on Detroit casinos from 18 percent to 24 percent, increasing state revenue by $49 million a year. If the casinos do not build permanent facilities and hotels, the tax would be increased another three percent. If the "racinos” proposed by House Bill 4610 are allowed, the tax would drop to the current level. Some $6 million of the new revenue would go to agricultural interests such as horse race prizes, fairs, and 4-H clubs. Because it amends an initiated law passed by the people (authorizing he Detroit casinos), a three-quarters vote of the House and Senate is required.
    Who Voted "Yes" and Who Voted "No"

  19. Signed by Gov. Jennifer Granholm on August 17, 2004.

Comments

Developing Detroit is the Priority  by Anonymous Citizen on August 16, 2004 
Casino Hotels are Vital to a New Detroit.

The rest of the State stands to gain from a developed Detroit. Detroit is Michigan's most underdeveloped resourse. With a stronger Detroit, the state of Michigan could lead again financially. Whats taking so long for the legislature to develop Detroit? Why not set aside the petty politics and put some muscle into developing Detroit? How many conventions and national events could have been in Michigan if the Legislature had invested in Detroit? The answer is plenty. Detroit could have put a competitive bid for the Olympics, if the Michigan Legislature had its priorities straight. Instead cities like Atlanta and Boston as stealing Detroit's fanfare and proper place in the business world. Its time to say enough is enough and for the Michigan legislature to help out Detroit and fix the State's reputation at the same time. Michigan has to much going for it to let other states out do it.

More tax incentives to build tourism and housing in Detroit are needed. Developing Detroit would bring money to the State and attract more companies to relocate downtown.

Builld Nice Casino Hotels Now  by Anonymous Citizen on August 16, 2004 
Michigan needs those Casino Hotels to attract conventions and tourism. Nice Detroit Casino Hotels would quickly become powerhouses for tourism. Thats the way to solve the budget crisis. Build tourism. Michigan is more centrally located than Las Vegas and has much more potential tourism than Nevada.

Nice Casino Hotels in Detroit need not worry about race track casinos. More than three nice casinos in Michigan would make it a destination. Michigan would become a destination if it built the attractions, no question about it. Millions of tourists from Cananda and the whole region only need a reason to take a weekend trip to Detroit. tourists are simply waiting for Michigan to get its act together and build.



What A Shocker..100 laid off  by Anonymous Citizen on August 12, 2004 
Taxes crush business...boy, who would have thought this would happen. Now watch as they all back out of building new casinos in the city. You would have to be delusional to think that this government won't REALLY whack em after they invest millions more. Maybe our tax crazy governor
thinks "cool cities" are ones with no business left in them. Maybe more art galleries and no smoking allowed coffee shops. That ought to help them with their budget problem.
Make the city a totally tax free zone and watch it grow.
Less Government + Less Taxes = More Prosperity


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