9/30/16
by News Department on 09/30/16Tax found to be unconstitutional...
The Pennsylvania Supreme Court has found that the tax that funds the popular Local Share Account grant program is unconstitutional.
The Local Share Account grant program is one of the most popular in the state. Boroughs, nonprofits, and economic development groups across the state count on it to purchase police cars and rehabilitate structures.
Pennsylvania casinos have paid tens of millions of dollars to their host communities. The loss will have a great impact thru ought the state.
Under the state’s original 2004 casino law, casinos must pay at least 4 percent of gross slot-machine gambling revenues to their host communities. That includes 2 percent to counties and 2 percent or $10 million, whichever is greater, to municipalities.
The court didn’t have a problem with the local share tax itself, but rather the unequal way that it is applied.
Under Act 71, the state’s gaming law, casinos outside of Philadelphia are required to pay taxes on their gross revenue to the municipality and county where they are located. That money goes into the Local Share Account.
Legislators will have 120 days to come up with a new law before the decision takes effect.
The deadline to submit applications for the 2017 program is Oct. 1.
