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| TAX OUTLINE |
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| TAX DESCRIPTIONS |
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| STATE 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. |
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| MEASURE OF TAX (BASE): |
Adjusted gross receipts received by a gaming licensee. |
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| RATE: |
24%. This may be levied as a state tax or individually as a state tax (at the rate of 12.1%) and a local tax (at the rate of 11.9%). Detroit imposes a tax, so the latter approach is used. Casinos failing to become fully operational ("permanent") by July 1, 2009, would pay higher tax rates: 25% in 2009, 26% in 2010, and 27% in 2011. Once a casino is certified to be fully operational, the tax rate is reduced to 19%. |
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| ADMINISTRATION: |
Michigan Department of Treasury, Michigan Gaming Control Board. |
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| REPORT AND PAYMENT: |
Due daily. |
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| DISPOSITION: |
55% of 18% tax or 100% of revenue from 9.9% tax to City of Detroit; 45% of 18% tax or 100% of revenue from 8.1% tax to School Aid Fund. One-third of the additional 6% tax is allocated to the City of Detroit, 7/12 to the State's General Fund and 1/12 to the Michigan Agriculture Equine Industry Development Fund. |
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| 2004-05 COLLECTIONS: |
$145,702,000 - State (October to September State fiscal year)
$137,970,347 - Local (July to June City fiscal year) |
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| State Casino Gaming Tax Law Changes |
Last Updated January 24, 2007
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