Wednesday, April 30, 2003 | 9:34 a.m.
DES MOINES, Iowa -- The Iowa House has approved a bill that would end the state's legal battle over the two-tiered tax structure for casinos in the state, but it faces an uncertain future in the Senate.
The legislation, a compromise between lawmakers and casino operators, got unanimous approval from the House Ways and Means Committee and easily passed the House, 94-3, on Tuesday.
One provision of the measure would settle a lawsuit that was argued earlier in the day before the U.S. Supreme Court.
Before the high court, Iowa Attorney General Tom Miller told justices it's not unconstitutional to force racetracks to pay more taxes than riverboats. He said states have flexibility in taxing gambling, and most justices seemed to agree.
Justice Ruth Bader Ginsburg said the state had no obligation to give "as sweet a deal" to racetracks. She said the state could have refused to allow the tracks to have profitable slot machines, permitting them only in casinos.
"They threw us a lifeline ... but it had an anchor attached to it," said Mark McCormick of Des Moines, the attorney for the Racing Association of Central Iowa.
Rep. Brad Hansen, R-Council Bluffs, has been pushing the parties to reach an agreement.
"I think both sides are eager to resolve this issue," Hansen said.
Under the compromise, the tax rate for floating casinos would remain at 20 percent. The tax rate for land-based casinos initially would be set at 30 percent, with a method for lowering that rate.
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