CUMBERLAND — A packed house of more than 70 people greeted the Allegany County commissioners Thursday night on Kelly Road where they held a special hearing on paper gaming issues during their weekly public meeting.
Most of those present were members of various local clubs, out to halt any thought commissioners might have of raising the 10 percent county gaming tax on nonprofits. American Legion and Veterans of Foreign Wars members were decked out in their post caps and uniforms.
“The work we do for the community will be curtailed significantly ... if the gaming tax is increased,” said Harry Grove, representing the Cresaptown Eagles club.
Rich Everett, the president of the county’s nonprofit association, said it’s a quality of life issue.
“Here in Allegany County, we don’t get a lot of support from downstate, so we have to do it ourselves,” he said. The nonprofit clubs and their donations to many organizations and causes in the community are a big part of that effort, he said. It would “cripple this community” if the already struggling nonprofits were hit with a tax increase on their gaming earnings, he said, urging commissioners to look at the “big picture.”
Speaker after speaker urged commissioners to leave well enough alone, and as each speaker representing the nonprofits concluded, the room was filled with the sounds of hefty applause.
Commission President Michael McKay emphasized that the meeting was so that both profits and nonprofits could get a fair hearing. Commissioners were not currently considering any legislation to change the tax rate paid by profit or nonprofit organizations. Commissioners, he said, were simply examining the issue after a request by for-profit businesses for a reduction in their 40 percent tax rate earlier in the year.
“We’re maxed out; I really feel that if it’s increased it’s really going to hurt,” said Ed Campbell of American Legion Post 189.
Among the dozen or more speakers asking commissioners not to make any changes, or even to cut the nonprofit rate, were Andy Winters of the Barton American Legion Post, Stanley Broadwater, Mayor John Bean of Barton and George Beal of American Legion Fort Cumberland Post 13.
Paul Johnson, VFW Post District 3 commander, said hitting the nonprofits, many of which are veterans organizations, would be a “slap in the face” of those who have served their country.
The county uses the funds to support volunteer fire and rescue departments and the board of education. The paper gaming revenue comes from tip jars and similar games in the nonprofit clubs and for-profit taverns, liquor stores and convenience stores.
Earlier this year, a coalition of for-profit owners asked commissioners to lower the 40 percent take of the earnings that they pay to the county. The only way that could happen, if the county wants to maintain the same income level, would be to raise the 10 percent tax imposed on the games offered by nonprofits. Now the nonprofits have organized to fight any attempt to increase the 10 percent tax imposed by the county.
Revenues to the county from gaming have dropped every year since 2008. Revenues for 2011 came in about $30,000 below projections, a trend that seems to recur year after year. The revenue was expected to be $434,000, and instead came in at $407,054. County revenue from the games was $425,295 in fiscal 2010 and $451,048 in fiscal 2009. In 2012, Gerald Joy, the county’s gaming administrator, is now projecting county revenue to drop to $385,000.
“Looking at that number right now, I’m not sure we’ll hit that,” Joy said.
Allocations to fire departments dropped from a high of $147,605 in fiscal 2008 to $83,552 in fiscal 2011, which ended June 30. The board of education will net $250,655, down from $442,816 in 2008. The 2008 figures are higher than typical because certain games allowed in 2008 were later declared illegal by the state.
Contact Matthew Bieniek at mbieniek@times-news.com.
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