Niagara Falls is mulling a potential tax hike affecting the upcoming months. The regional council is currently considering the pros and cons of a 2.9-percent tax increase in a consolidated levy budget of CA$409 million. Fallsview Casino Resort and Niagara Casino remain closed to this day and the lack of gaming revenue has begun taking its toll on the local community.
January 21 could see the approval of the proposed budget for the upcoming months after the regional council made a step forward with its proposed 2021 budget. It comes with a tax increase prompted by the unprecedented situation in the region and its financial side. The ultimate goal of this tax hike would be to cover expenses.
Suspended Casino Operation
Helen Chamberlain, the Region’s Director of Financial Management and Planning, said that the unprecedented situation has led to substantial expenses that need to be covered, projections are that this could happen with an increase of the tax. For the upcoming year, the money needed could swell to CA$17.8 million, an amount that should be taken care of.
The budgeting process has taken place taking into account only confirmed sources of provincial funding, as it should be a sustainable approach. Some CA$17.2 million will come from the surplus amassed over 2020 with the help of the Provincial Safe Restart funding. It should be pointed out that the two casino hotspots located in the Niagara Falls region remain closed to this day and there is no timeline issued for their reopening. Gaming revenue generated by the two locations is essential.
It is poured in via the City of Niagara Falls and it is used for the support of Niagara Regional Police. This is considered one of the main points in the regional balance sheet. Casinos are able to support their host community in various ways, or at least that was the case until their temporary suspension of operation back in March 2020.
2.9-Percent Tax Hike
Ms. Chamberlain made appoint that the unprecedented situation has posed a threat to the region. Vaccination rollout is projected to commence in the upcoming months which could eventually lead to the official reopening of brick-and-mortar casino locations in Niagara Falls. Fallsview Casino Resort and Niagara Casino are looking forward to this moment as well. The Municipalities Contribution Agreement inked with Ontario Lottery and Gaming Corporation is important.
It mandates that 5.25 percent of the first CA$65 million generated by slot machines, as well as some 4 percent of revenue on table games is allocated to the host community of Niagara Falls, Ontario. Over fiscal 2019/2020 tear, city coffers bagged some CA$22,120,660, ranking it among the best-supported casino host communities on a provincial scale. Tourists making their way there have supported casino operation for decades now.
The first quarter of 2020/2021 fiscal year coincided with the mid-March 2020 suspension of casino operation and ended up paying nothing to any of the casino host communities. Property taxes are affected by that, as some 26 percent of the agreement offset them. In the fall of 2020, it also became clear that Niagara Falls has voted to postpone future capital expenditures.
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