If approved, the Indian casinos would have a dramatic impact on the casino measure, known as Issue 6 on the November ballot. Federal law prohibits state and local taxes levied on Indian casino. Instead state and local governments must negotiate gaming compacts which may specify tribal payments. The wording of Issue 6 says that if a second casino is built in Ohio, the Clinton County casino would pay "the lesser of the rate taxed on another casino or 25 percent."
"The conclusion is clear: If Indian casinos locate in Ohio and are taxed at the federal rate of zero, I think under terms of the amendment, the tax rate on the casino would drop to zero and the counties would get nothing," said D. Michael Grodhaus, attorney for the Vote No Casinos group.
Leaders of MyOhioNow.com admitted yesterday that they made a mistake in the
wording to lower the tax rate to zero and said they were working to correct it.
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