Tax, racino issues remain as Mich. legislators recess

Amy F. Bailey

Tuesday, July 20, 2004 | 9 a.m.

LANSING, Mich. -- The state House and Senate won't meet this week after the leaders of both chambers failed Monday to agree on bills to increase the tax on the three Detroit casinos and expand gambling at horse racetracks across Michigan.

Neither chamber will meet until after the Aug. 3 primary.

House members who support a bill to allow horse tracks to have slot machines and other electronic gaming devices want to see revenue generated by the expansion to go toward helping Michigan's racetracks survive and boosting agricultural interests.

But the Senate wants the new revenue to help the state's tight budget.

The two chambers also disagree on a bill to increase the gaming win tax on Detroit's three casinos -- MotorCity, MGM Grand and Greektown. The version approved by the House would double the tax from 18 percent to 36 percent. The Senate approved increasing it by one-third to 24 percent.

The two sides met Monday to talk about the so-called racino bill. A vote isn't expected on the casino tax increase until an agreement is reached on the racino legislation.

"We're not making any progress," said Bill Nowling, spokesman for Senate Majority Leader Ken Sikkema, R-Wyoming.

Nowling said House members behind the racino bill are pushing a version similar to the one approved by that chamber, which the Senate won't support.

Rep. Larry Julian, a Lennon Republican who introduced the racino bill and proposed the measure to double the casino tax, said lawmakers will have to consider spending reductions if they can't reach a deal on the bills.

"We're looking at $100 million in cuts," he said.

No other meetings on either bill were scheduled this week, Julian said Monday.

Neither chamber is meeting next week because a number of Democrats, including Gov. Jennifer Granholm, will be in Boston for the National Democratic Convention.

The delay allows a handful of state representatives in tough primary contests to concentrate on the election. The House is the only legislative chamber up for re-election this fall.