Tax Aids and Credits

Aids - Casino Aid to Counties

Statewide Outcome(s):

Casino Aid to Counties supports the following statewide outcome(s).

A thriving economy that encourages business growth and employment opportunities.

Context:

Increased service demands from tax-exempt property can lead to financial strain for local governments. State payments to local governments exist in various forms to enhance local government revenue, assist in basic service delivery, and reduce property tax burdens on homeowners and/or businesses.

Funding Source: State General Fund.

Strategies:

Provide a state aid to counties where an Indian reservation is located in the county, the tribes operate a casino, and state taxes are collected under a tax agreement with the tribe.

County casino aid provides state tax revenue sharing with counties containing an Indian reservation where the tribe operates a casino and has an agreement with the state to collect taxes. The aid is equal to ten percent of the state share of the taxes collected from the Indian reservation under a tax agreement, up to a maximum of $1.1 million per year. If the total payment exceeds $1.1 million, reductions will be made first to counties that do not have a per capita income less than 80 percent of the same state level or have 30 percent or more of total market value of real property that is tax exempt.

Results:

The fiscal impacts of tax-exempt tribal-owned casinos are reduced for local governments.

Performance Measures Notes:

Number of counties receiving casino aid compares calendar year 2009 (previous) to 2011 (current).