Supreme Court’s Casino Tax Verdict Could Devastate Chester

By

Chester CFO Nafis Nichols
Chester CFO Nafis Nichols, at podium, said that, if the Pennsylvania Supreme Court's current decision to return local assessment taxes back to casinos is upheld, it would be devastating for his city. Photo courtesy of Rick Kauffman, Digital First Media.

Rather than “all in,” the Pennsylvania Supreme Court is sending local assessment taxes on casinos “all back,” and the decision could have a disastrous effect on communities like Chester.

A recent decision found the tax, which has levied the greater of $10 million or two percent on casinos’ annual slot machine revenue since 2004, to be wildly inconsistent from one casino to the next, and therefore in violation of the uniformity clause of the Pennsylvania Constitution.

“Twenty-five percent of our (City of Chester) yearly revenue is predicated on the monies we receive from Harrah’s Philadelphia,” CFO Nafis Nichols said in a Keystone Crossroads report by Laura Benshoff. “If the current decision is upheld, it would be devastating for Chester.”

Even with the minimum $10 million tax on annual slot machine revenue, Chester faces chronic financial problems. Without it, the community could be forced to take desperate measures.

“We are mindful that our decision may significantly affect many counties and municipalities that have ordered their affairs in reliance upon (local share assessments),” the majority opinion asserted.

As such, the Supreme Court has granted a brief, 120-day reprieve from the full force of the verdict. In the meantime, community leaders are urging lawmakers to take action and rewrite the laws.

Click here to read more about the decision and its implications from Keystone Crossroads.

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