Wednesday, September 22, 2010
Voters in Lincoln County, New Mexico, on Tuesday approved a three-sixteenths of 1 percent sales tax increase that will help keep Ruidoso Downs Racetrack in the county.
The referendum to raise the business retention gross receipts tax passed by a margin of 53-47 percent. A total of 3,719 voted in favor of the tax increase, while 3,299 voted against.
Lincoln County Commission chairman Tom Battin told the El Paso Times that he was happy to see the measure pass.
“This protects the future of our economy and our tourist industry,” he said. “The racetrack has been a cornerstone of this economy for many decades, and we need it."
The increased tax will provide the Ruidoso Downs Racetrack and its Billy The Kid Casino with $750,000 a year for the next five years. Any additional money raised by the new tax – an estimated $450,000 – will be used for economic development in Lincoln County.
The racetrack and casino have been losing money the past few years, and its owner, R.D. Hubbard, submitted an application with the New Mexico Racing Commission to move the operation to Las Cruces. According to audited financial statements, the track lost $2.25 million in 2008 and $1.46 million last year.
The cities of Clovis and Alamogordo also expressed an interest in bringing the track and casino to their areas.
Supporters of the tax increase said they will work toward finding another long-term solution, primarily through the state legislature, to bring tax parity for non-Indian gaming facilities, which pays 26 percent of its take, compared to Indian gaming that pays 9 percent on a sliding scale, depending on total revenues.
Sandi Aguilar, executive director of the Ruidoso Valley Chamber of Commerce, told the Times that the region could not afford to lose the racetrack, which conducts an annual 3 ½-month race meet during the summer and features a casino and simulcast racing year-round.
“We are a tourist destination, and this is one of our main attractions,” she said. “The racetrack is such an economic stronghold that we have to keep it here.”
Local supporters put the racetrack’s economic impact at about $45 million a year. According to economic impact reports, 40 percent of the jobs in Ruidoso are tied to the track.