Mississippi Tax Revenue Sinking

MISSISSIPPI -- Mississippi's tax coffers suffered the lingering effects of Hurricane Katrina as the state's tax revenue from gaming fell almost $10 million during September.

With 13 casinos from the Gulf Coast communities of Biloxi, Bay St. Louis and Gulfport knocked out of commission by the hurricane on Aug. 29, the state collected gaming tax revenue from only the Mississippi River communities of Greenville, Natchez, Lula, Tunica and Vicksburg.

In August, when all of the state's 29 casinos were operating, Mississippi collected $17.3 million in gaming taxes. The figure dropped to $7.6 million in September, with casinos operated by such companies as MGM Mirage, Harrah's Entertainment and Pinnacle Entertainment closed.

A year ago, Mississippi casinos contributed almost $12.4 million to the state's general fund and $168.5 million for all of fiscal 2005. That amount is expected to decline as long as the Gulf Coast casinos are not operating. The state's gaming commission estimated Mississippi is losing $500,000 a day in state and local taxes with the casinos not operating.

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