Jul 7, 2016 2 min read

HARRISBURG – The owner of Pittsburgh’s Rivers Casino is suing the state Department of Revenue, claiming a municipal tax based on slot machine revenues is illegal and should be refunded.

Holding Acquisitions Co. filed the state Supreme Court lawsuit last week.

The casino claims the tax violates a clause of the state constitution requiring taxes be uniform. The lawsuit contends the Local Share Tax is illegal because casinos must pay $10 million a year to the municipality where they’re based if slots revenues are less than $500 million, or 2 percent of annual revenues over $500 million. Also, Philadelphia casinos pay a flat 4 percent, with no $10 million minimum.

The Rivers Casino paid Pittsburgh about $65 million since it opened in 2009.

According to a Revenue Department spokesman, The Meadows Racetrack & Casino paid North Strabane Township more than $20 million since it opened in 2007. The township receives more than $2 million a year in local share allotment.

Richard McGarvey, spokesman for the state Gaming Control Board, explained the law allows the municipality to receive up to 50 percent of the total amount of its budget annually in local share money. The remainder of the $10 million minimum then goes to the county in which the casino is located. It was not immediately known if that money is also part of the legal challenge.

North Strabane Township Manager Frank Siffrinn declined to comment, saying he had not yet seen the lawsuit. Solicitor Gary Sweat was not available for comment Thursday. The Meadows, through a spokesman, also declined comment Thursday.