Pa.+Gaming+Tax+Cuts

Pa. gaming revenue brought wide tax cuts Edward G. Rendell is governor of Pennsylvania.

> Had the state imposed a nearly $1 billion tax increase, there would be a groundswell of frustration and anger.

> That's why it's important to note that something unique happened in 2008 with very little notice: Pennsylvanians received $786 million in tax relief - including the largest wage tax cut in Philadelphia's history and an average cut of nearly $200 in property tax bills for every homeowner in the rest of the state.

> A few weeks ago, The Inquirer correctly noted that gaming has produced "a flood of new tax dollars pouring into the state coffers." These funds made it possible to cut property taxes statewide. To date, the taxes and licensing fees imposed on the slots venues have generated $1.9 billion in new revenues for the commonwealth. And 2008 marks the first year that these funds benefited every homeowner in the state. Here's how:

> Nearly $1 billion in gaming funds is earmarked for the state's first-ever property tax cuts for homeowners. Although only seven of the 14 licensed venues are in operation, the gaming revenue has already funded the property tax cuts reflected in bills sent out in July. Last year marked the first in our state's history when the commonwealth put into effect permanent cuts in homeowner property tax bills.

> On top of historic property tax cuts for every homeowner, senior citizens on limited incomes received extra help paying their property taxes or rent. More than $240 million in gaming funds made it possible to increase the state's property tax and rent rebate program. As a result, more than 110,000 senior homeowners have had their school property taxes totally eliminated, and nearly 600,000 have received an average rebate from the state of $477 to defray their property tax bills.

> The seven facilities operating are employing more than 6,000 Pennsylvanians, with an additional 3,000 people estimated to be working for retail or related businesses supporting the casinos. These permanent jobs are in addition to the 17,000 jobs created to construct the first seven locations.

> Pennsylvanians are reaping other tangible benefits from the opening of the gaming facilities. More than $200 million has been spent on critical economic development projects identified by the local governments as a priority.

> First, $100 million went out in grants to volunteer fire companies to pay for new equipment and improved facilities. Now grants will begin flowing to upgrade local drinking and waste-water systems. And, even though no slots venues are open in Philadelphia, the tax revenue from gaming is already hard at work in the city paying for the expansion of the Pennsylvania Convention Center.

> Mayor Nutter and the Chamber of Commerce identified this expansion as their No. 1 priority for the use of these funds. Their counterparts in Pittsburgh identified the building of the Penguins arena as their top economic development priority, and work is under way to construct that facility.

> There is no question that, given the demands on the state budget and declining revenue, had the legislature not enabled limited gaming in the state, funds for these critical economic development projects would have never materialized.

> The Philadelphia region has another reason to note the historic impact of gaming revenue. In 2008, the wage tax paid by anyone living in Philadelphia finally was cut below 4 percent. Gaming funds made this possible, and on New Year's Day the wage tax was cut again to 3.93 percent. In fact, the state's gaming funds account for the single-largest reduction in this tax in history.

> The expansion of gaming in Pennsylvania has not been without challenges. We have learned a great deal of what needs to be done to improve licensing and enforcement. We have encountered local siting problems in Philadelphia, while private capital problems slowed the Pittsburgh venue.

> In spite of these obstacles, the property and wage tax cuts and improvements to local communities promised when the gaming bill was enacted have been kept. As new venues open, residents in this region, and across the commonwealth, will benefit even more.

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Contact Gov. Rendell > at www.governor.state.pa.us.