Posted on Thu, Mar. 27, 2008
Casino incentives OK'd
By MICHAEL NEWSOM
mmnewsom@sunherald.com
JACKSON -- A bill giving tax breaks to casinos to build non-gambling amenities - South Mississippi's last surviving piece of legislation for the 2008 session - passed the Senate Wednesday after a lengthy debate.
The bill was part of a deal between the House and Senate. The Senate, which has a large anti-casino faction, agreed to the incentives package. The House, where there is more support of casino gambling, agreed to pass the Senate's moratorium on casino counties.
House Bill 1196, offered by Rep. Diane Peranich, D-Pass Christian, provides tax breaks to casinos that invest more than $10 million on non-gambling developments. It covers theme parks, water parks, cultural or historical centers, motor speedways or other large, non-gambling tourist attractions. The bill would also provide incentives for hotel investments of more than $40 million, as well as golf courses with investments of more than $10 million.
The bill was up against a deadline Wednesday. The Senate amended the House's bill and the two will have to agree on language before it could be signed into law.
Senate Tourism Chairwoman Lydia Chassaniol, R-Winona, said she was excited the bill passed both houses, which it had failed to do in several attempts. She said that over the years, north Mississippi senators have cast the bill as a morality issue to defeat it, but she believes it's really an economic issue.
Sen. Billy Hewes, R-Gulfport, Sen. Tommy Gollott, R-Biloxi, and Sen. David Baria, D-Bay St. Louis, championed the bill in the Senate Wednesday. They sparred with Sen. Gary Jackson, R-Kilmichael, who is a Baptist pastor, as well as Sen. Hob Bryan, D-Amory, and Sen. Alan Nunnelee, R-Tupelo.
Gollott - one of the architects of the legislation that allowed offshore gambling in the mid-1990s - told the Senate that casinos are driving the recovery from Hurricane Katrina and are pumping out some $250 million in state tax revenue each year.
"If we would not have had gaming back when Katrina hit, we would have asked that the last one to leave Biloxi please turn the lights out," said Gollott, whose family leases land to casinos.
Hewes said the incentives plan would allow a casino group to take advantage of incentives already offered to other businesses through past legislation that excluded casinos. The bill would allow a casino to recoup up to 30 percent of the project's value over a 10-year period, by giving it access to a percentage of the sales tax the project creates. Coast senators said the incentives would likely cause much investment on attractions in the state from casino groups.
Bryan said he doesn't believe casinos are interested in building other attractions to keep people out of the casinos, but Baria said that he and many South Mississippians go to casinos to eat or see shows and never gamble.
"People can buy Playboy for the interviews, too," Jackson said in response to Baria.
The Senate vote Wednesday was 34-16 and the only member of South Mississippi's delegation to vote against the measure was Sen. Billy Hudson, R-Purvis.
A Senate bill that would limit casinos to the counties where they are currently legal passed the House Wednesday.
Senate Bill 2199 was amended in the House and the two chambers will have to come to terms before the bill can be signed into law.
Behind the scenes, lawmakers brokered a deal on the two pieces of casino legislation. The incentives bill was killed last year by anti-gambling forces in the Senate and the deal required pro-casino lawmakers to vote for the geographical limit, and anti-casino ones to vote to allow the incentives.
The moratorium on casino expansion, which has also failed in previous legislative sessions, would not affect plans for tribal casinos because American Indian groups operate as sovereign nations and do not have to adhere to state law.
A motion to reconsider was entered on the moratorium bill, and that will have to be dispensed with before the bill could move forward.
Peranich
Gollot
Hewes
Baria