Monday, March 12, 2012

Tourism may have hit jackpot: Chafin amendment gives fund slice of taxes

The state Tourism Promotion Fund could share in the winnings ifthe Legislature approves a bill to permit casino gambling at TheGreenbrier.

The Senate Finance Committee passed legislation Tuesday thatwouldallow a county-wide referendum on casino gambling at the five-stateresort to go forward. The bill now goes to the full Senate.

Lawmakers OK'd substantial revisions to the bill, includingchanging a tax on adjusted gross receipts from 52.5 percent to 37percent. Greenbrier officials had said the higher tax would causethe resort to lose money on its casino.But Greenbrier President Ted Kleisner also has said the hoteldoesn't intend to make money from the casino. Instead, he hopes theadded attraction can fill empty beds during the resort's winter off-season.Estimates suggest the casino could bring in about $11 million.The Greenbrier would get about $6 million, most of which would go toru nning the casino and to lottery expenses.Of the $11 million total, $4.2 million would be taken in the formof taxes.The bulk of that tax revenue - 92 percent - was headed for thestate. But an amendment by Senate Majority Leader Truman Chafin tookjust a little bit - 3 percent - for tourism."Tourism is the only growth industry in West Virginia," Chafin, D-Mingo, said. "I hope you'll support the amendment and supporttourism."But Sen. Shirley Love, whose district includes Greenbrier County,wondered if there wasn't something ironic about using gambling moneyto promote West Virginia's state parks, clean living and outdoorrecreation opportunities.Love, D-Fayette, was one of three committee members who ultimatelyvoted against the bill. He said a casino is not what hisconstituents want - and the increasing numbers of letters andpetitions he's receiving prove it."This is being forced upon them by special gambling interests,"Love said. "They absolutely do not want this."Another dissenting lawmaker, Sen. Donna Boley, said the message isloud and clear from her district: "My people aren't for this."Boley, R-Pleasants, also worries that, despite assurances, thebill could open the door for expansion of gambling across the state.The bill specifically states only one casino license would beissued and only at a single, 500-bed resort listed on the NationalHistoric Register."It's like letting the camel's nose under the tent," Boley said."If such a thing is allowed at The Greenbrier, why not atMountaineerPark? Why not in Cabell County? Why not in the Eastern Panhandle?"Approval by the Senate Finance Committee is by no means the lastvote on the bill. It must be approved by both the Senate and theHouse.Senate President Earl Ray Tomblin, D-Logan, has said he believesthe majority of the body's 29 Democrats will support the bill.Speaker Bob Kiss, D-Raleigh, said he thinks the vote in the Housecould go "either way." If it passes, Greenbrier County voters willvote in a referendum on the casino.Writer Karin Fischer can be reached at 348-5149.

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