Nonprofits Concerned About Revenue Sharing Lawsuit

With three area educational institutions recently filing a lawsuit against the Emmet County Local Revenue Sharing Board, community agencies and nonprofit organizations are concerned about the affect it’s going to have on them.

Several years ago the Little Traverse Bay Bands of Odawa Indians’ casino complex was taken off the property tax rolls and placed in federal trust status — at the time the land the casino now sits upon was still vacant.

Through the tribe’s gaming compact with the state, six taxing units — Charlevoix-Emmet Intermediate School District, Emmet County, Greenwood Cemetery, North Central Michigan College, Public Schools of Petoskey and Resort Township — are designated to receive a portion of the casino’s 2 percent electronic gaming receipts as payments in lieu of property taxes. Several local governments agreed to use 35 percent of the gaming receipts for tax replacement.

In 2007, with the gaming receipts totaling $1.2 million, the revenue sharing board distributed $420,000 (or 35 percent of $1.2 million) among the six taxing units. As stated in the gaming compact, the board is also required to distribute at least one-eighth (hypothetically $150,000 in 2007) of the gaming receipts to public safety. In recent years, the revenue sharing board has also distributed funds to local community agencies and nonprofit organization through grants — with the lawsuit being filed, this may no longer be a possibility.

For the complete story, please see Christina Rohn, Revenue sharing lawsuit could impact community agencies, Petoskey News-Review, November 14, 2008.