****ACTION ALERT—VICTORY AGAINST HB 271 AND SB 230****

We were victorious this legislative session. SB 230 CAPITAL IMPROVEMENTS GAMING TAX CREDIT had its first assignment to Senate Corporations and Transportation Committee (SCORC), and it never got heard. I’m told that it is not going to get heard in the last two days. I’m not sure how much impact our phone calls, emails, etc. had on that result, but I’m very happy for it.

HB 271 passed unnoticed through the first committee, but we got the chance to testify against it in House Taxation and Revenue Committee. It was immediately tabled, and stayed on the table until last Friday. It was sent to the House floor on Saturday and worked its way up the House Calendar very slowly until it was heard last night about 11:00 pm. There was lots of debate, with tribal casino advocates, social interest advocates, as well as business advocates ripping into it. Again, I have no idea how much influence our supporters influenced the outcome with phone calls, etc., but the bill went down in flames with a vote of 40 against and 28 for the bill. It was trashed so badly that I suspect they will not try it again in the next session.

The Albuquerque Journal posted the following op-ed on Monday, the same day the vote occurred on the House floor. Maybe that helped swing some votes.

Thanks for all your help in defeating these two obnoxious bills. It’s nice to win some.
Dr. Guy Clark, chairman
Stop Predatory Gambling New Mexico

https://abqjournal-nm.newsmemory.com/  p A11

Racinos’ tax credit bills a losing bet

HOUSE BILL 271, the Capital Improvements Gaming Tax Credit bill, and its twin SB 230, are the latest efforts by the racetracks to get state subsidies for their gambling.

Track bailouts to prop up the failing racetrack industry have a long history in New Mexico. For decades before 1996, the racetracks received financial support from the state to supplement their gambling income on a regular basis. In 1996-1997, when the casinos started raking in the money with slot machines, the tracks wanted in on the action. When the tracks started lobbying the Legislature for slot machines, they said slots would save the tracks and they would never again need subsidies from the state. They have since made efforts a few years ago to get more subsidies, but the Legislature wisely voted against their bills. They’re at it again.
What makes the racetracks so special that they should get tax subsidies that productive, useful businesses do not get? I’ve talked to business owners and managers who wish they could get tax reductions in the amount of their capital improvements.
Instead of benefiting New Mexico economically, several noted economists have reported that casinos are a net drag that cannibalizes local businesses. If that’s hard to believe, check the report by the New Mexico Taxation and Revenue Department in 1997, which showed the huge negative financial impact new casinos had on wholesome businesses like restaurants, clothing stores, car dealerships, movie theaters and others. The overall New Mexico economy took a dive then that the state has not fully recovered from.
New Mexico has more casinos per person than Arizona, Utah, Colorado and Texas, and we have the worst economy. I think there is a solid connection. Also, the beneficial economic multiplier effect that applies to most businesses has been shown to not be nearly as effective with gambling operations.
If that’s not enough, many studies show casinos in your community mean you will have significant increases in homelessness, bankruptcy, child abuse, spouse abuse, drug addiction, criminal activity, suicide and other social problems.
With all the negative impact on businesses and society that racinos cause, why reward them with a tax write-off that we don’t offer more productive businesses? The racetracks should learn to just stand on their own four feet.
The Legislature should vote to kill HB 271 and SB 230.
DR. GUY CLARK Chairman,
Stop Predatory Gambling New Mexico