State officials and Iowa’s race track casinos have struck a deal on taxes, the same day Attorney General Tom Miller appeared before the U-S Supreme Court to argue for keeping state taxes intact. The tracks will drop their lawsuit, and have settled for a 30 percent tax rate with the promise that they’ll get rebates from the state if gambling taxes grow. The ultimate goal, according to Republican Representative Brad Hansen of Carter Lake, is for those rebates to lower the tax rate for the tracks to 20 percent — equal to the state tax on riverboats. He says there’s concern on both sides over the possibility of losing the case. He says the state could lose 150 million dollars if it loses the case. Iowa’s race tracks sued the state, arguing it was unfair to tax the tracks at a rate that’ll climb to 36 percent while taxing the riverboats at just 20 percent. The tracks won at the State Supreme Court, which ruled the state owed the tracks million in back taxes. The bill resolves that legal conflict, so the state doesn’t have to pay. The House is scheduled to debate the bill this evening.
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