District 30 residents have expressed interest in how much money is taken in from gaming, where the money goes, and how much of a property tax rebate it provides.  Below are some important facts and information about gaming revenues in Pennsylvania.

The gross terminal revenue (GTR) from slot machines is taxed at 55% which is used as follows:  a 34% State tax; a 4% Local Share Assessment for use by counties and municipalities hosting licensed facilities; a 5% tax deposited into the Pennsylvania Gaming Economic Development Fund to be used for capital projects; a 10% tax deposited into the Race Horse Development Fund to support the horse racing industry in Pennsylvania, and a 2% tax which is transferred to the General Fund.  The 34% State tax is used to provide funding for the volunteer company grants ($25 million), local law enforcement grants ($2 million), Compulsive and Problem Gambling Treatment Fund ($2 million), drug and alcohol addiction treatment services ($3 million), payments in lieu of taxes on state forest and game lands ($8.5 million), expansion of the Property Tax Rent Rebate (PTRR) program ($125 million), PTRR supplemental rebates ($26.5 million), Sterling Tax Credits ($18.2 million) and homestead property tax relief which amounted to $595 million in fiscal year 2009-10 (see attached tables for more detail on the uses of the gaming revenues).

With 14 casino licenses authorized by Act 71 of 2004 Governor Rendell estimated that this industry would generate $3 billion annually in GTR, which would generate $1 billion annually for property tax relief from the 34% State tax.  To date only 9 licensed venues are currently operating in Pennsylvania and these 9 casinos are generating approximately $2.1 billion in GTR which equates to $714 million annually for property tax relief.  In total, more than $1.7 billion has already been provided in property tax relief from gaming revenues through homestead exemptions and PTRR rebates to seniors.

As far as property tax relief in the Shaler Area School District, a little over $2 million in gaming revenues was provided to the school district in 2008-09 and 2009-10 to provide property tax relief to homeowners via the homestead exemption.  According to information on the Department of Education’s website, homeowners received a reduction of approximately $170 on their school district tax bill in each of these years.