September 17, 2008, Introduced by Reps. Meisner and Griffin and referred to the Committee on Regulatory Reform.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 41 of article IV and
adding section 43 to article IX, to allow casino-style gambling
games to be conducted at licensed horse racetracks, to impose a tax
on the conduct of those games, and to provide for the allocation
and expenditure of that tax revenue.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to allow casino-style gambling games to be
conducted at licensed horse racetracks, to impose a tax on the
conduct of those games, and to provide for the allocation and
expenditure of that tax revenue, is proposed, agreed to, and
submitted to the people of the state:
ARTICLE IV
Sec. 41. The legislature may authorize lotteries and permit
the sale of lottery tickets in the manner provided by law. No law
enacted after January 1, 2004, that authorizes any form of gambling
shall be effective, nor after January 1, 2004, shall any new state
lottery games utilizing table games or player operated mechanical
or electronic devices be established, without the approval of a
majority of electors voting in a statewide general election and a
majority of electors voting in the township or city where gambling
will take place. This section shall not apply to gambling in up to
three casinos in the City of Detroit, to gambling under section 43
of article IX, or to Indian tribal gaming.
ARTICLE IX
Sec. 43. For tax years beginning after the year in which the
official declaration of the vote approving this amendment is made,
the credit claimed against state income tax liability under the
income tax act of 1967, 1967 PA 281, or any successor statute, for
taxes paid on a homestead, shall be increased as provided in
implementing legislation. The maximum homestead property tax credit
available to a taxpayer shall be increased by a percentage
calculated by dividing the revenue generated from wagering taxes
imposed under this section for a period by the total amount of
homestead property credits claimed by taxpayers for the period.
It shall be lawful to conduct casino gaming as provided in
this section. A person that conducts casino gaming under this
section shall pay a wagering tax that totals not less than 4% and
not more than 35% of the person's adjusted gross receipts from
casino gaming. The money paid for this wagering tax shall be paid
and allocated as follows:
(a) The person that conducts casino gaming under this section
shall pay 2% of the person's adjusted gross receipts from casino
gaming directly to the municipality in which the casino gaming is
located.
(b) A person that conducts casino gaming under this section
shall pay 2% of the person's adjusted gross receipts from casino
gaming directly to the county in which it is located.
(c) If the legislature imposes a wagering tax exceeding 4% of
the adjusted gross receipts from casino gaming, a person that
conducts casino gaming under this section shall pay that percentage
of the person's adjusted gross receipts from casino gaming in
excess of the first 4% to this state. The state treasurer shall
allocate the money paid under this subparagraph to educational
scholarships or tuition payments at Michigan public institutions of
higher education for eligible graduates of Michigan public high
schools, or to the general fund to further reduce the state income
tax.
No other taxes, fees, assessments, or costs of any kind shall
be imposed on a person that is subject to the wagering tax under
this section. This paragraph does not preclude the imposition of a
reasonable fee to apply for a license to conduct casino gaming
under this section or the imposition of fines or penalties for
conduct prohibited by law or regulation.
Casino gaming shall be allowed at up to a total of seven
licensed horse racetracks where race meetings were held by persons
licensed by this state to hold race meetings in either of the two
calendar years preceding adoption of this section. If there are
fewer than seven horse racetracks that are eligible under this
paragraph, horse racetracks licensed after its adoption may seek a
license to conduct casino gaming under this section, subject to the
limit of seven total licensed horse racetracks.
A person eligible and that wishes to conduct casino gaming
under this section shall apply to the Michigan gaming control board
for a license that will require, among other terms and provisions,
that the casino's ability to conduct casino gaming under this
section is contingent on both of the following:
(a) The continuing conduct of live horse racing at the
person's racetrack pursuant to a license issued by the racing
commissioner.
(b) Execution of a reasonable agreement with the municipality
in which the person's racetrack is located that guarantees a
certain number of jobs.
(c) Execution of a reasonable purse agreement with the
certified horsemen's organization associated with the person's
racetrack.
The same laws and regulations shall apply to all persons that
conduct casino gaming in this state that are subject to state
regulation, except as provided in this section. A person that
conducts casino gaming under this section is subject to the
exclusive regulatory jurisdiction of the Michigan gaming control
board or any successor agency. The conduct of, wagering on, and all
other matters concerning live and simulcast horse racing shall be
kept physically separate from casino gaming under this section at a
licensed horse racetrack and shall be regulated by the racing
commissioner or any successor agency. A person shall not be
prohibited from holding a license for, or related to, casino gaming
or a casino authorized under this section solely, or primarily for,
the reason that the person also holds a license for, or in
connection with, live or simulcast horse racing, or otherwise has
an interest in the horse racing industry.
The legislature shall enact legislation to implement this
section. If any part or parts of this section are found to be
unenforceable because of the United States Constitution or federal
law, this section shall be implemented to the maximum extent
possible, with each provision severable from every other provision.
The purpose of authorizing additional casino gaming under this
section is to reduce individual income taxes and create new sources
of revenue for public education and economic development in this
state, to preserve live and simulcast horse racing as a form of
sport and entertainment distinct from casino gaming, to promote
tourism and economic development, and to control the growth of
casino gaming so that it may be adequately regulated. The casinos
authorized under this section shall be in addition to the three
casinos regulated under state law that operate in the city of
Detroit.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at the next general election
in the manner provided by law.