6 - 1 decision

Pennsylvania lawmakers granted 4-month extension to draft new casino tax

The Pennsylvania Supreme Court on Friday gave legislators a four-month extension to come up with a new levy on slot machines.
2017-01-23
Reading time 54 seg
The Pennsylvania Supreme Court on Friday gave legislators a four-month extension to come up with a new levy on slot machines.

The court extended the deadline from Jan. 23 until May 26.

Under the state's 2004 gambling law, casinos were required to pay at least 4 percent of gross slot machine revenue to their host communities as a local-share assessment. That includes 2 percent to counties and 2 percent or $10 million, whichever is greater, to municipalities.

In September, the court said the assessment was a non-uniform tax imposed in violation of the state constitution's uniformity clause. Legislators failed to come up with a solution in October before breaking for elections and the end of session.

Justice David Wecht, who wrote the court's opinion in September, opposed the extension. In his dissent, Wecht said the court shouldn't lend a hand to the General Assembly, which “lacked the political will” to find a remedy.

“Stalled in a political traffic jam of their own making, the legislators ask this Court to build them a detour,” he said. “We should decline to do so.”

The local-share assessment generated grant funds for local governments to cover costs associated with gambling-related crime and increased police activity, expanded social services, and economic development projects.

Westmoreland County, which doesn't host a casino, never received grant money, unlike surrounding counties of Allegheny, Fayette and Washington.

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