An Originating House Bill was taken up today by the House Committee on Finance.
The Originating House Bill would take the four percent of taxes that are generated from race tracks and casinos up until $17.5 million and make it so that it no longer goes into a Modernization Fund for the race tracks and casinos.
The race track and casino Modernization Fund provides funds so the tracks are able to upgrade their machines to compete with the other states’ tracks and casinos. However, the limited Video Lottery retailers, where most of these funds are originating, are only taxed at about 52 percent.
A representative from the race tracks said the fund has helped them keep that level up on the competition. Also the majority of the funds go to upgrading the machines. He also said 80 to 90 percent of players are from out of state and the modernization fund will help to keep the tracks competitive with the out of state ones.
Delegate Gearheart (R-Mercer) asked, “Are there any other industries that get tax dollars to stay competitive?”
Council said there weren’t any.
Delegate Longstreth (D-Marion) asked, “Where are the employees coming from?”
Council said that the employees are primarily from West Virginia.
The bill was moved to be amended by Delegate Rowe (D-Kanawha) to direct the first $2 mill to go to the Library Commission that would be directed to general revenue. The amendment was rejected after encouragement to run the amendment as a separate bill.
The House Bill Originating was reported to the floor with the recommendation that it do pass with a close vote of 14 yeas and 11 nays.
