Cherry, who was among the casino’s key supporters, has submitted a new bill that could change how taxes are distributed
A Virginia lawmaker who was among the chief proponents of a casino in the Petersburg area has proposed the generation of a commission that would distribute the gaming tax revenue.
Delegate Mike Cherry, a former army member and active pastor, was among the promoters of a casino referendum in Petersburg. Thanks to his efforts, local voters were allowed to weigh in on the casino matter.
Petersburg Residents Support the Casino
In 2022, Petersburg citizens voted in overwhelming favor of a Las Vegas-style resort in the area, approving the Cordish Companies and Bruce Smith Enterprise’s $600 million casino proposal.
For context, Virginia lawmakers greenlit casinos in 2020. Richmond had originally applied for a license but locals rejected the plans, paving the way to a casino in Petersburg instead.
Now, Cherry, who was among the casino’s key supporters, has submitted a new bill that could change how taxes are distributed.
The Bill Would Create a New Commission
Virginia, for context, takes an 18% cut of the revenue of casinos earning up to $200 million a year. Casinos earning up to $400 million and over $400 million, on the other hand, must pay taxes of 23% and 30%, respectively. Usually, 6% of the taxed sum stays in the city hosting the casino.
Cherry’s House Bill 2232 would see the creation of a five-member panel that would determine how the local tax revenue should be spent. The so-called Tri-Cities Improvement Commission (T-CIC) would consist of representatives from Petersburg, Hopewell, and Colonial Heights, as well as Dinwiddie County and Prince George County. T-CIC commissioners will serve two-year terms.
The commission will be tasked with receiving disbursements and determining the funding priorities among all localities in a 10-mile radius with an average annual household income under $81,000. Disbursements will be divided equally among the member localities.
The bill is set to be further discussed by the House General Laws Committee.
Cherry’s Proposal Received Mixed Reactions
Cherry’s measure mirrors Bristol, which has a similar panel and is the only city to take a 7% cut of the casino tax.
The proposal received support from local lawmakers, some of whom applauded the idea. Delegate Kim Taylor noted that the casino would be a major revenue driver and that it is only logical the community should reap some of the benefits.
Conversely, Councilor Marlow Jones believes that the casino’s presence by itself would be a benefit to the community since it would bolster local businesses and create many new jobs. Jones said that he strongly opposes Cherry’s proposal, going as far as to call it a “deliberate attempt to keep Petersburg shackled in the shadows of prosperity.”
Jones furthermore proposed a counter bill that would rectify the balance created by HB 2232.
Tysons Casino Future Remains Murky
In the meantime, the Tysons casino in Fairfax County continues to raise concerns. Scott Surovell, a senate majority leader, recently submitted SB 982, which seeks to greenlight the project’s development.
However, some believe that the project would represent a threat to national security. Intelligence and defense experts have long opposed the proposed plan to local unions’ dismay.
