LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7412 NOTE PREPARED: Feb 22, 2021
BILL NUMBER: SB 390 BILL AMENDED: Feb 22, 2021
SUBJECT: Gaming Operations
FIRST AUTHOR: Sen. Perfect BILL STATUS: 2nd Reading - 1st House
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill provides that certain planned reductions in graduated
tax imposed on the adjusted gross receipts received from riverboat gambling games take effect in
state fiscal years beginning after June 30, 2023 (instead of June 30, 2021). It makes technical
corrections.
Effective Date: (Amended) July 1, 2021.
Explanation of State Expenditures:
Explanation of State Revenues: Change in Riverboat Wagering Tax Rate: The bill makes changes to the
riverboat graduated tax rate structure. It will defer the effective date of the changes in the graduated wagering
tax rates that are going to occur on July 1, 2021, to July 1, 2023. This would result in additional Riverboat
Wagering Tax collections in FY 2022 and FY 2023. Riverboat Wagering Tax is distributed to local units and
state General Fund. The state General Fund is estimated to receive an additional $16.4 M in FY 2022 and
$13.8 M in FY 2023.
Additional Information: The Department of State Revenue deposits Riverboat Wagering Tax revenue in the
State Gaming Fund. Funds are first appropriated to the IGC to administer riverboat gaming. From the
remaining funds, the first $33 M or an amount determined under a formula enacted under P.L. 268-2017 each
fiscal year is set aside for local revenue sharing. After the revenue sharing set aside, 25% of the remainder,
up to the FY 2002 distribution level, is distributed to the dock city or county of the riverboat from which the
revenue is received. The remaining Riverboat Wagering Tax revenue is distributed to the state General Fund.
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Any additional revenue received under the tax will increase the distribution to local units and the state
General Fund.
Explanation of Local Expenditures:
Explanation of Local Revenues: Change in Riverboat Wagering Tax Rate: The bill defers the reduction
in Riverboat Wagering Tax rate from July 1, 2021, to July 1, 2023. This would result in additional riverboat
wagering tax distributed to local units that receive distributions of riverboat wagering tax revenues. Local
units estimated to receive distributions up to the 2002 cap level under current law will likely not receive any
additional distributions under the bill. The estimated statewide total additional local distributions would be
about $4.8 M in FY 2022 and $3.5 M in FY 2023. The fiscal impact will only occur in FY 2022 and FY 2023
as the reduction in rates will only be deferred for two years.
State Agencies Affected: Indiana Gaming Commission; Department of State Revenue.
Local Agencies Affected: Local Units with Riverboats.
Information Sources: Auditor’s Database, State Revenue Forecast (RFTC), December 16, 2020.
Fiscal Analyst: Randhir Jha, 317-232-9556.
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Statutes affected:
2. Senate Bill (S): 4-33-13-1.5, 4-33-21-3
3. Engrossed Senate Bill (S): 4-33-13-1.5, 4-33-21-3