Delco Councilmen Try to Retain Gaming Tax Funds from Harrah’s by Testifying in Harrisburg

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Wrapped up cash and casino chips

The Pennsylvania legislature has little time to fix a portion of the state’s gaming law to ensure that Delaware County residents are not hit with a big loss in revenue from its only casino.

Delaware County Council Chairman Mario J. Civera Jr. and Councilman John McBlain traveled to Harrisburg this week to speak up to maintain the county’s local tax share from gaming revenue – which adds $4.3 million to county coffers, reducing the tax burden on residents.

The potential loss of gaming revenue is the result of a Sept. 28 ruling by the Pennsylvania Supreme Court that the local tax share payments in the Gaming Act of 2004 are unconstitutional on the grounds that they favored some casinos over others. The ruling centers around assessing the tax by percentage or on the basis of a flat fee.

The legislature was given just 120 days to come up with a fix for the tax issue. However, the General Assembly only has one more three-day voting session scheduled this fall, from Oct. 24-26.

Civera and McBlain traveled to Harrisburg to stress that a fix for the local tax share is a necessity.

“This is a complicated situation, but we believe that the General Assembly must preserve a process that has worked to benefit the Commonwealth and its citizens,” Civera said. “Delaware County is home to Harrah’s Casino in the City of Chester. Harrah’s employs more than 1,400 people in well-paying jobs, and local share revenue has enabled the county and the city to make substantial contributions to the local economy.”

Civera was a representative in the state legislature when the gaming law was passed, and he stressed that careful consideration was given to all aspects of gaming, both opportunities and risks, when the legislation was crafted. One key aspect was that gaming could support growth and employment in the communities where casinos operate, and that it was important to channel some of the gaming revenue back into those communities.

Both Civera and McBlain stressed that the gaming funds are now an integral part of the county’s revenue, and loss of them would have a substantial negative impact on taxpayers and “devastating consequences in localities such as Chester.”

County officials face a Nov. 1 deadline to release a balanced budget and it would be “a hard task” to make up $4.3 million without burdening taxpayers, Civera told the Gaming Oversight Committee.

McBlain testified that the local revenue from Harrah’s has enabled the county to help fund critical infrastructure, like the Monroe Energy facility in Trainer, which employs 1,000 people, and Talen Energy Stadium, home to the Philadelphia Union soccer team, which also provides jobs.

McBlain also stressed that Delaware County uses its local share taxes to fund human service programs, such as the local advocates for children program.

“We understand that you face a difficult task as you try to find a path that complies with the Supreme Court’s decision, and we are ready to work with you to accomplish that,” McBlain said.

This week, Gaming Oversight Committee Chairman John Payne, of Dauphin County, said he favors a narrow fix of the tax, but the committee is also considering additional revenue brought in from legalized internet gambling.

“We are fighting for our fair share of this revenue to help our residents,” McBlain said. “When the casinos purchased their licenses, they were in agreement that part of the revenue would benefit the communities they impact. Chairman Civera and I are fighting to keep that tax share.”

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