(1)There is hereby imposed a gaming tax on the
adjusted gross proceeds of gaming allowed by this article 30. The tax is set by rule
as promulgated by the commission. The commission shall not set the tax at more
than forty percent of the adjusted gross proceeds. In setting the tax rate, the
commission shall consider the need to provide money to the cities of Central, Black
Hawk, and Cripple Creek for historic restoration and preservation; the impact on the
communities and any state agency, including infrastructure, law enforcement,
environment, public health and safety, education requirements, human services,
and other components due to limited gaming; the impact on licensees and the
profitability of their operations; the profitability of similar forms of gambling in
other states
Free access — add to your briefcase to read the full text and ask questions with AI
(1) There is hereby imposed a gaming tax on the
adjusted gross proceeds of gaming allowed by this article 30. The tax is set by rule
as promulgated by the commission. The commission shall not set the tax at more
than forty percent of the adjusted gross proceeds. In setting the tax rate, the
commission shall consider the need to provide money to the cities of Central, Black
Hawk, and Cripple Creek for historic restoration and preservation; the impact on the
communities and any state agency, including infrastructure, law enforcement,
environment, public health and safety, education requirements, human services,
and other components due to limited gaming; the impact on licensees and the
profitability of their operations; the profitability of similar forms of gambling in
other states; and the expenses of the commission and the division for their
administration and operation. The commission shall also consider the following:
(a) The amount shall never exceed the percentage provided in section 9
(5)(a) of article XVIII of the state constitution;
(b) The amount shall be established in conformity with the spirit and interest
of this article 30 so as to encourage business growth and investment in the gaming
industry and to permit licensed operations, under normal business conditions and
operation procedures, to realize a fair and just profit;
(c) The amount shall take into account unreimbursed local financial burdens
associated with limited gaming-related operations;
(d) In setting the amount, the commission shall take into account profit
levels after expenses of similar forms of gaming in other states;
(e) The amount shall take into account capital costs required to comply with
local, state, or federal requirements; financial reserves required by the commission
for payments to winners; and investments necessitated by regulatory requirements
of the commission;
(f) The amount shall permit the licensed operator a reasonable profit after
expenses, including:
(I) Capital costs associated with the licensed premises;
(II) Capital costs associated with limited gaming equipment;
(III) Capital costs required to comply with local or state requirements;
(IV) Extraordinary operating costs, including the provision of housing or
transportation, or both, for employees;
(V) Initial costs associated with commencement of limited gaming;
(VI) Financial reserves required by the commission for payment to winners;
(VII) Investments necessitated by regulatory requirements of the
commission; and
(g) If local voters in one or more cities revise any limits on gaming as
provided in section 9 (7)(a) of article XVIII of the state constitution:
(I) Any commission action that increases the percentage of gaming taxes
from the percentages imposed as of July 1, 2008, shall be effective only if approved
by voters at a statewide election held under section 20 (4)(a) of article X of the
state constitution; and
(II) Gaming tax revenues attributable to the locally approved revisions shall
be collected and spent as a voter-approved revenue change without regard to any
limitation contained in section 20 of article X of the state constitution or any other
law.
(2) When adopting or amending any rule affecting the applicable tax rate or
any other attribute or policy relating to application of the gaming tax authorized by
subsection (1) of this section, the commission shall consider the impact on
recipients of limited gaming tax proceeds, including those from extended limited
gaming.
(3) (a) The department shall collect the amount of gaming tax on adjusted
gross proceeds determined pursuant to subsection (1) of this section from the
licensed retailer and shall have all of the powers, rights, and duties provided in
articles 20, 21, and 26 of title 39 to carry out the collection. The commission shall
authorize reimbursement to the department of the costs associated with collection
of gaming tax on adjusted gross proceeds from licensed operators pursuant to
subsection (1) of this section, upon documentation of the costs satisfactory to the
commission.
(b) All money collected pursuant to this section shall be deposited in the
limited gaming fund created by section 9 (5)(a) of article XVIII of the state
constitution.