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Home/Imbroglio over tax sharing at Casino Le Lyon Vert
Imbroglio surrounding tax sharing at Casino Le Lyon Vert
Opened in 1882, the Casino Le Lyon Vert is a very special place. Indeed, this Partouche casino is authorized to operate thanks to the spa status of the town of Charbonnières-les-Bains.
However, it is located in the neighboring town of La Tour-de-Salvagny. A 20-year agreement was supposed to have settled any differences between the 2 municipalities.
Unfortunately, the Chambre Régionale des Comptes has just highlighted its legal weakness.
Via a recent report published by the Chambre Régionale des Comptes
Throughout the 140-year history of the Casino Le Lyon Vert, the towns of Charbonnières-les-Bains and La Tour-de-Salvagny have fought over the tax revenues generated by the establishment.
This was done first by mutual agreement, then through an intercommunal syndicate, before a bipartite agreement was signed in 2018 for a 20-year period.
But here’s the thing: on Friday May 26, the Chambre Régionale des Comptes published a report highlighting certain legal weaknesses in this famous agreement.
As a result, the town of La Tour-de-Salvagny may well decide to terminate the agreement. What’s more, the Metropole de Lyon is responsible for promoting tourism, which enables it to levy a gaming tax. So it too could ask for its share of the loot.
>>> Read also: “Casino Le Lyon Vert to increase its surface area”
47% retrocession granted by La Tour-de-Salvagny
The Casino Le Lyon Vert is one of France’s leading gaming establishments in terms of gross gaming revenue. Every year, the municipalities of Charbonnières-les-Bains and La Tour-de-Salvagny share millions of euros in this revenue, which represents more than half of their tax revenues.
They can therefore afford to charge a low property tax, while their population is one of the most affluent in the Lyon metropolitan area.
This is precisely the purpose of the agreement signed in 2018. It seeks to prevent a major loss of resources for the town of Charbonnières-les-Bains. Indeed, the agreement requires La Tour-de-Salvagny to retrocede 47% of its tax revenues from the Casino Le Lyon Vert.
If Charbonnières-les-Bains no longer received taxes from the gaming establishment, it would be obliged to double its household tax rates, in order to continue operating with its current budget.
There seems to be no serious reason for this retrocession.
According to the Chambre Régionale des Comptes, the problem is that the legal situation of the Casino Le Lyon Vert is rather delicate. In fact, there is no legal precedent for it. According to the long-standing principle of the prohibition of gifts, a local authority cannot commit itself or be condemned to pay a sum it does not owe.
This is precisely what the Chambre Régionale des Comptes recently ruled: there does not appear to be any serious cause to support the retrocession of the 47% of tax revenues from the Casino Le Lyon Vert accepted by La Tour-de-Salvagny. The town could therefore decide to put an end to it, if it so wished.
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