FISCAL NOTE



FUND(S):

State Gaming Fund*

Sources of Revenue:

Special Fund

Legislation creates:

A New Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


In 1999, the legislature enacted article 29-25 allowing one historic resort hotel such as the Greenbrier Resort to have table games and video lottery games for registered hotel guests. In year 2000, a local referendum was defeated in Greenbrier County. In 2007, the Legislature enacted article 29-22C allowing pari-mutuel racetracks with video lottery games also to have table games. In 2008, Greenbrier County voters finally approved casino gaming for the Greenbrier Hotel. At that time it was noted that table gaming and video lottery provisions for racetracks were different from provisions in the “Greenbrier law.” House Bill 3084 seeks to bring parity between the two kinds of destination gaming facilities; however, restrictions remain on what patrons may enter and gamble at the historic resort hotel.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 1,027,128
Personal Services 0 0 563,276
Current Expenses 0 0 152,752
Repairs and Alterations 0 0 0
Assets 0 0 51,100
Other 0 0 260,000
2. Estimated Total Revenues 0 0 6,847,520


Explanation of above estimates (including long-range effect):


In the bill, state and local government tax rates are lowered. The table games tax is reduced from 37% to 35% to match the racetrack table games rate. The video lottery tax is reduced from 53% to 36% to match the tax paid by racetracks. The "State Gaming Fund*" created by the 1999 Regular Session is renamed the "Historic Resort Hotel Fund." The bill creates a “Human Resource Benefit Fund” that consists of 17% of video lottery net terminal income and 5% of table gaming adjusted gross receipts. The historic hotel is reimbursed from the fund by the Lottery Commission for its payment of qualified employee benefits. In the racetrack acts [29-22A and 29-22C], the 17% and 5% amounts benefit racing animal owners and track employee pensions. The new facility will need to be constructed and equiped; therefore, the first year of operation is projected to by Fiscal year 2011. State revenues are stated in positive numbers, even though the tax rates are reduced. This is because no taxes were collected under the original bill’s rates. Distributions to state and local entities are modified so that all municipalities and counties benefit as they do in racetrack the table games act. Agency costs are for new employees and their equipment, and for central computer software modifications.



Memorandum






    Person submitting Fiscal Note: John Melton
    Email Address: jmelton@wvlottery.com