Governor says casinos need new tax system

Governor Tom Vilsack says it’s time to set up a new system for taxing the state’s gambling casinos. It would be similar to the state’s personal income tax: the more profit a gambling enterprise makes, the higher their tax rate. Vilsack’s comments come in the wake of an Iowa Supreme Court ruling that the state’s race tracks should not be taxed at a rate that’s higher than the riverboats. Vilsack says it’s obvious the legislature has some work to do on this. He says lawmakers opted to wait to see how court case would pan out rather than embrace that new taxation system for the gambling industry. Vilsack says it’s a “progressive” tax structure and an appropriate way to proceed.Vilsack says it’s based on volume of revenues at the race track casinos and the riverboats, and he says it’s “very consistent” with the philosophy of the state’s personal income tax system.