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‘Reconsider poker winning tax bill’
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Posted on Nov 13 2006
Acting Gov. Felix T. Mendiola yesterday returned to the Legislature a bill that would increase taxes on poker winnings.
Without issuing a veto, Mendiola asked the Legislature to further consider House Bill 15-85 and its impact on the poker industry.
“While there is no doubt of the need to enhance our government’s revenues, the taxes to be assessed under the bill should be very clear for ease of implementation and enforcement,” he said in a letter to acting Senate President Jude U. Hofschneider and House Speaker Oscar M. Babauta.
He also urged the respective committees of each house of the Legislature to consult with the Department of Finance to improve the bill’s enabling provisions.
In an interview, Mendiola said that, as a “pro-business” lawmaker, he believes that the government should carefully review any move that imposes additional burden on the private sector.
Hofschneider, who asked Mendiola to return the bill to the Legislature, commended the acting governor for his action.
Hofschneider said that the poker industry has suffered enough from the recently enacted Poker Machine License Fees Act, which requires poker operators to pay annual license fees up front, instead of quarterly.
“Some poker rooms already closed down because they can’t afford it,” he said.
Authored by Vice Speaker Justo S. Quitugua, House Bill 15-85 seeks to enhance revenue collection by increasing the jackpot tax and taxing winnings between $99 and $999.
The legislation proposes to tax jackpot winnings of $1,000 and over by 30 percent and to set aside 10 percent of these taxes for the Public School System. The bill also proposes to tax winnings between $99 and $999 by 25 percent.
