Tax reduction explored

Thursday, April 20, 2000 | 11:04 a.m.

NEW ORLEANS -- The owners of Harrah's New Orleans Casino are testing the waters with legislators for a reduction of the gambling hall's $100 million annual state tax, WWL-TV reported.

The tax has been a stumbling block for the casino's ownership, JCC Holding Co. In late February, JCC's minority partner, Harrah's Entertainment Inc. of Las Vegas, began making the casino's $274,000 daily tax payment, which is due no matter how little the casino makes.

A tax reduction would free up capital for the casino project. In a filing last month with the Securities and Exchange Commission, JCC Holding said that under the present financial situation, the casino may never be profitable.

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