Bill Calls for Gaming Taxes to be Studied

Santa Fe- The New Mexico State Senate tonight unanimously passed a memorial requesting the Gaming Control Board to study the tax situation at racetracks.

The sponsor of the Senate Memorial 52- Racetrack Casino Progressive Tax Study- is Senate Minority Caucus Chair Steven Neville. (R-San Juan.)

“We need to study the fairness of our tax situation for our racetrack casinos and their competitiveness with Indian casinos,” Senator Neville said. “The five racetracks in the state pay half of the racing taxes while the remaining half is paid by the 16 Indian casinos. The few racetracks are paying 50% of the taxes because of the disparity in taxation. Racetrack casinos pay as high as 26% tax while Indian casinos only pay 8%. This inequality needs to be studied and how it affects the competitiveness of racetrack casinos.”

The memorial will study the feasibility of implementing a progressive tax bracket based on revenue generated by race tracks. Senator Neville said the competitiveness is important for their future and their ability to continue to contribute millions in tax revenue to the state. Senator Neville said the racetrack businesses contribute $400 million to the state’s economy.

“The current tax structure makes it difficult for racetrack casinos to compete with the Indian casinos, the study should be reported to the legislature by November,” Senator Neville said.

Bill Calls for Gaming Taxes to be Studied