Report: Tax plan trimmed

Tuesday, June 3, 2003 | 9:40 a.m.

ATLANTIC CITY -- Gov. James E. McGreevey has agreed to withdraw part of his plan to boost taxes against the casino industry, The Press of Atlantic City reported.

The administration decided to deduct $45 million from its $135 million tax proposal several days ago as a concession to the industry, Kathy Ellis, a spokeswoman for the governor, told the newspaper.

Ellis said it was made clear to the casino industry that it needs to contribute $90 million, in some form, to the state budget. She also said the industry has not come up with fund-raising plans.

"We appreciate them agreeing to talk with us, but we're still looking at a $90 million hole and no proposals," Ellis said.

The casino tax would tax complimentary rooms and meals given out by casinos. The governor also had wanted to increase the casino revenue tax rate from 8 to 10 percent.

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