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| TAX OUTLINE |
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| TAX DESCRIPTIONS |
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| LOCAL CASINO GAMING |
LEGAL CITATION: |
M.C.L. 432.201-432.216; Initiated Law of 1996 |
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| YEAR ADOPTED: |
1996 |
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| BASIS OF TAX: |
Privilege of operating a casino in the City of Detroit. Only three licensees are authorized under Initiated Law 1 of 1996. |
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| MEASURE OF TAX (BASE): |
Adjusted gross receipts received by a gaming licensee. |
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| RATE: |
11.9% in 2008, 12.9% in 2009, 13.9% in 2010, and 14.9% in 2011. Rate is reduced to 10.9% when a licensee becomes fully operational (See box below). |
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| ADMINISTRATION: |
City of Detroit. |
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| REPORT AND PAYMENT: |
Due daily. |
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| DISPOSITION: |
City of Detroit. |
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| 2005-06 COLLECTIONS: |
$156,588,917 |
State Casino Gaming Tax Rate Reduction
Under Initiated Law 1 of 1996, the casino wagering tax can be levied as a single state tax (at a rate of 18%) or as two separate taxes (a state tax at the rate of 8.1%, and a local tax at the rate of 9.9%). Because the City of Detroit chose to impose a local tax, there are two separate taxes.
Public Act 306 of 2004 (effective September 1, 2004), which amended Initiated Law 1 of 1996, increased the local casino gaming tax rate from 9.9% to 11.9%. Under the Act, casinos failing to become fully operational ("permanent") by July 1, 2009, would pay higher tax rates: 12.9% in 2009, 13.9% in 2010, and 14.9% in 2011. Public Act 306 further provided that when a casino became fully operational, a casino can apply for a reduction in the tax rate to 10.9%. The MGM Grand Casino and the Motor City Casino became fully operational effective October 2007 and December 2007, respectively, and are subject to the 10.9% tax rate. Greektown Casino continues to pay the tax at the 11.9% rate. |
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| State Casino Gaming Tax Law Changes |
Last Updated July 21, 2008
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