Gary mayor wants casino to pay overdue taxes before state regulators vote on license renewal

Gary mayor wants taxes before casino license vote

GARY, Ind. — Gary Mayor Rudy Clay is calling for the Majestic Star casino to pay $22 million in overdue Lake County taxes before state regulators vote on whether to renew the casino’s license.

Clay’s request comes after the Gary City Council passed a resolution earlier this year urging the Indiana Gaming Commission not to renew Majestic’s licenses.

But the Post-Tribune reports that Majestic Star officials say the majority of its taxes are under appeal at the Calumet Township Assessor’s Office.

The casino’s general manager, Larry Buck, says the two gambling boats were overassessed and overtaxed. He said the county might have to refund some taxes already paid by Majestic Star once the appeal is complete.

“In a nutshell, we’ve paid everything that’s due,” Buck said. “Obviously, the remainder is going through the normal course of the appeals process.”

Records provided by Lake County officials show $21.9 million is overdue on properties held under the names Majestic Star Casino, Buffington Harbor Riverboats LLC and Buffington Harbor Parking Associates LLC. An additional $4.3 million has not yet come due.

Records also show Majestic, which filed for bankruptcy in 2009, paid about $2 million toward its total tax bill. Lake County officials said those payments were made last month.

Buck said the value of Majestic’s two boats rose from $49 million in 2005 to $110 million in 2006, prompting the appeal.

Information from: Post-Tribune, www.post-trib.com