HomeMy WebLinkAboutR-2008-232 Pari-Mutuels Tax structure RESOLUTION 2008-232
A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA,
SUPPORTING ACTION BY THE FLORIDA LEGISLATURE TO PROVIDE
THE PARI-MUTUELS WITH AN EQUAL OPPORTUNITY TO PROVIDE
THE SAME GAMING PRODUCTS AS THE SEMINOLE TRIBE AND TO
ESTABLISH A TAXING STRUCTURE THAT ALLOWS THE PARI-
MUTUELS TO OPERATE COMPETITIVELY WITH THE SEMINOLE
TRIBE; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, there are currently Pari-mutuel facilities in Broward County operating slot
machines and the voters in Miami-Dade County have approved the operation of slot machines by
the Pari-Mutuels in Miami-Dade County; and
WHEREAS, the Governor entered into a compact with the Seminole Tribe of Florida to
allow slot machines, banked card games and no-limit poker tournaments at seven Seminole Tribe
facilities located in Florida; and
WHEREAS, the Florida Supreme Court has ruled that the compact between the State of
Florida and the Seminole Tribe is invalid and requires ratification by the Florida Legislature and
declared the operation of banked card games illegal in Florida; and
WHEREAS, a Federal Judge has denied the Florida Attorney General's attempts to
enjoin the Seminole Tribe from operating slot machines and banked card games and the Indian
Gamin Commission is reviewing the request of the Florida Attorney General who has requested
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that the Federal Government order the Seminole Tribe to cease conducting these games; and
WHEREAS, Governor Charlie Crist has announced that he will enter into negotiations
with the Florida Legislature to ratify a compact with the Seminole Tribe and the Speaker of the
House has appointed a Committee to address the ratification of the Seminole Compact; and
WHEREAS, the Pari-mutuels currently operating slot machines in Florida pay taxes on
slot machine revenues in the amount of 50% to the State, 1.5% to Broward County and 1.7% to
the municipality in which they operate, together with additional licensing and regulatory fees;
and
WHEREAS, the Seminole Tribe enjoys a significant competitive advantage over the
Pari-mutuels by being able to provide bank card games and other additional gaming products that
the Pari-mutuels cannot; and
WHEREAS, the Seminole Tribe prior to the compact paid no taxes on its gaming
revenues and under the compact with the State and will pay substantially less than the licensed
Pari-Mutuels are currently paying; and
WHEREAS, the Pari-mutuels' slot machine revenues provide significant funding for
education in Florida as well as significant employment in the County in which they operate and
without significant tax restructuring these Pari-mutuels will not be able to continue to provide
revenue and jobs in Florida; and
WHEREAS, due to the significant tax and gaming product advantage the Seminole Tribe
enjoys,the Pari-mutuels cannot compete with the Seminole Tribe facilities and are in real danger
of having to cease operations as demonstrated by Boyd Gaming Corporation's recent
announcement that due to the competition created by the compact between the State of Florida
and the Seminole Tribe, among a host of other economic and market driven reasons, that it will
not construct the extensive gaming and resort facilities it had planned at Dania Jai Alai, despite
having purchased the facility just two years ago for$152.5 Million Dollars;
NOW,THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH, FLORIDA:
Section 1. The City Commission of the City of Dania Beach supports the licensed
Pari-mutuels and supports legislation that provides a responsible and appropriate means of
allowing the Pari-mutuels to continue to operate in competition with the Seminole Tribe under
the terms and conditions of a Seminole Tribe Compact with the State of Florida that is ratified by
the Florida Legislature.
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Section 2. The City of Dania Beach supports legislation that provides for a
reasonable tax structure for the Pari-mutuels, including a tax structure that provides a mechanism
whereby the Pari-mutuels can obtain a tax credit for dollars invested in capital improvements at
their facilities or otherwise removes from taxable revenues the amount of dollars invested for
capital improvements at their facilities.
Section 3. The City Clerk is directed to transmit a copy of this Resolution to all
appropriate parties.
Section 4. That all resolutions or parts of resolutions in conflict with this Resolution
are repealed to the extent of such conflict.
Section 5. That this Resolution shall be in force and take effect immediately upon its
passage and adoption.
PASSED AND ADOPTED on December 9, 2008.
ALIJERT C. JONES
ATTEST: o�PRos FiRSrc�TyAYOR-COMMISS NER
LOUISE STILSON, CMC
CITY CLERK
�NcoaroRn'�,#�
APPROVED TO�ORM AND CORRECTNESS:
TH S PA4SARO
CITY ATTORNEY
3 RESOLUTION#2008-232