Caesars riverboat pleads for tax relief

Tuesday, Sept. 5, 2000 | 11:05 a.m.

CORYDON, Ind. -- The owner of the Glory of Rome riverboat casino, citing lower-than-expected gambling revenues, wants its property-tax bill cut in half, but county officials have refused.

The Indiana Board of Tax Commissioners will hear Caesars Indiana's case for tax relief Nov. 14. The casino owner's request has met a stiff challenge from Harrison County officials, who argue it's unfair to other taxpayers.

Appeals of assessments by property owners who believe their land or improvements such as homes and barns have been overvalued for tax purposes are commonly requested and granted.

The county already has rejected Caesars' request for a 50 percent "economic obsolescence" deduction off a tax bill of about $551,000. Caesars justified the deduction -- which is based on factors beyond the taxpayer's control -- by saying unexpected events last year caused gambling revenues to fall below expectations.

Among the factors cited were drought and low water levels on the Ohio River, along with a collision with a barge that put the casino out of commission for two weeks, and required archaeological surveys that delayed construction of a nearby 500-room hotel.

The Glory of Rome riverboat is the world's largest. It is located on the Ohio River, about 14 miles downstream from Louisville, Ky. It's owned by Park Place Entertainment Corp. of Las Vegas.

"We determined we couldn't let them have it. It was just too much," County Assessor Paul Saulman said of the tax relief request.

Caesars' request for tax relief was submitted to county officials five days after statewide gambling revenues for 1999 were made public. Caesars' gross revenues for the year totaled $157 million, lower than what some analysts expected.