Letter: Can’t compare Detroit casino taxes to Las Vegas

Monday, Aug. 16, 1999 | 10:09 a.m.

Sure, casinos in Detroit may pay a higher gross revenue tax percentage than casinos in Nevada. But what of the numerous other Nevada taxes that casinos pay here, such as the quarterly slot machine fee, the annual slot machine tax, the annual casino license fee and the casino entertainment tax, just to name a few.

More importantly, however, in Detroit there is a limit of only three casino licenses being issued. This is critical because it eliminates the risk to these casinos that others might enter the Detroit market to compete.

Any business, whether a doughnut shop or a casino, would be willing to pay a higher basic tax rate if in return the government guaranteed that competitors could not operate in the same geographical area.

Therefore, comparing casino tax rates in Detroit with those paid in Nevada makes a poor argument for any increases in Nevada taxes.

THOMAS SMOCK Desert Inn vice president/associate general counsel

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