Ohio casino cities tax your winnings
Posted August 06, 2012 in Press Releases
Columbus’ move to tax gambling winnings puts it at the table with the state’s other largest cities.
The city council voted unanimously last week to impose the city’s 2.5 percent income tax on any winnings claimed by its residents on games of chance, including church raffles, the state-run lottery and other drawings. Even those who win cash playing bingo or entering basketball-tournament pools would be required to give up a share of their jackpots.
It also doesn’t matter whether a city resident wins a jackpot in Columbus, Las Vegas or Louisiana. And the tax applies to any nonresidents who win a jackpot in Columbus. For the most part, players who win $1,200 or more at a casino or at a video-lottery terminal at a “racino” will be taxed. The threshold is $600 for lotteries, drawings, horse racing and promotions, according to the city’s ordinance.
The city wanted an income tax in place before the Hollywood Casino opens on Oct. 8 on the West Side. The tax will be retroactive to June 1 of this year once the ordinance clears the 30-day referendum period this month.
“The (ordinance) mirrors what is stated in the Ohio Revised Code and what the IRS requires people to claim on their federal taxes,” said Melinda Frank, the city’s income-tax administrator. She said it’s unclear how much revenue the income tax will generate for the city.
The state’s three other cities that host casinos