AGO 2004-07.

• Case Date: February 09, 2005
• Court: Indiana

Indiana Attorney General Opinions 2005. AGO 2004-07. February 9, 2005Originally issued February 6, 2004 OFFICIAL OPINION 2004-7Senator James Merritt, Jr. Assistant Majority Caucus Chair State House200 West Washington Street Indianapolis, Indiana 46204-2785 Re: Gambling tax revenues and historic preservationDear Senator Merritt: This letter is in response to your correspondence of November 25, 2003, wherein you requested that our office issue an opinion addressing the following issue:

When gambling tax revenues, which have been disbursed to local communities, are used to fund projects that result in the demolition, alteration or removal of a historic structure, as defined in Indiana's Historic Preservation and Archeology Act, must the project obtain the approval of the Historic Preservation Review Board?

The Indiana Historic Preservation and Archeology Act states that "a historic site . . . may not be altered, demolished, or removed by a project funded, in whole or in part, by the state unless the Review Board has granted a certificate of approval." Ind. Code § 14-21-1-18. The issue at hand becomes whether or not gambling tax revenues constitute being "funded, in whole or in part, by the state." Id. Gambling taxes are levied by the state, collected by the state and disbursed under formulas established by state law. A portion of the revenues collected as a result of those taxes is distributed to local units of government. Therefore, we conclude that such gambling revenues are state funds and that their expenditure to alter, demolish, or remove a historic structure requires a certificate of approval from the Historic Preservation Review Board.' BACKGROUND Pari-mutuel wagering on horse races and riverboat gambling generate tax revenues that ultimately make their way to local governments. Under the pari-mutuel statute, admission taxes are collected for individuals "who paid an admission charge for the privilege of entering the racetrack grounds or satellite facility." Ind. Code § 4-31-9-5(a). The tax is collected by the department of state revenue. Ultimately, half of the admission tax revenue is deposited in the state general fund and half of it is distributed to the city, town or county "in which the racetrack is located." Ind. Code § 4-31-9-5(b). Under the riverboat gambling statute, "[a] tax is imposed on...