Last Two Dollars
One possible problem resulting from enacting a tax that applies to only one entity is that if that taxpayer refuses to pay it, then there’s no revenue stream. The Times-Herald is reporting that city officials of American Canyon, California are learning this from the Napa Valley Casino, which operates the city’s only card room.
About a year ago, city voters approved a $2 card room admission tax. To date, the casino has refused to pay the tax on the grounds that the tax is unconstitutional. The casino believes fewer patrons would frequent the card room. Because of $2? I’m not so sure.
The City Council issued a resolution directing the City Attorney to compel the casino to pay the tax. Will authorities padlock the casino if it doesn’t pay up? I doubt it will come to that. If history is any indication, I suspect the sides to negotiate an agreement so the casino doesn’t take a hit in expected profits and the city receives its desired revenue stream.