LANSING – The Republican and Democratic leaders of the Senate are working to win passage of a tax increase on Detroit casinos to 24 percent, up from the 18 percent they now pay but far less than the 36 percent rate approved by the House. The proposal by Senate Majority Leader Ken Sikkema (R-Wyoming), which is supported by Senate Democratic Leader Bob Emerson of Flint, would reduce the tax to 21 percent after the three Detroit casinos construct permanent facilities.
Of the initial increase, a Sikkema spokesperson said Tuesday the state would get revenues from 4 percentage points of the tax while the city would get 2 percentage points. Under the current tax structure, the state gets 8.1 percent and the city 9.9 percent.
While staff works to complete writing the substitute to HB 4612, the leaders will discuss the proposal over the next few hours with caucus members trying to round up the required 3/4 majority, though aides said they are not yet sure if they can get the 29 votes to send the matter back to the House.
The tax increase has become a major element of the budget talks after Republicans rejected Gov. Jennifer Granholm’s proposals to increase taxes on liquor and retain the estate tax.
This story was provided by content partner, Gongwer News Service. To subscribe, click on Gongwer.Com
