Rep. Gary Moore, R-Standish, has been named to a committee established to examine the taxation of revenues generated from slot machines located in Maine. The appointment was made in July by Speaker of the House Glenn Cummings.

“I am pleased to have been appointed to this important committee,” Rep. Moore said. “The process of examining adjustments to the current tax structure needs to be transparent. We also need to be cautious of diverting additional tax revenues to the state and how it might affect the men and women who depend on the harness racing industry for their livelihood.”

In 2003, Maine voters approved the construction of a slot machine facility in Bangor. Soon after the election, the state developed a regulatory framework for slot machine operators under which any operator must pay a 1 percent tax on gross slot machine revenue and a 39 percent tax on net slot machine revenue.

Penn National Gaming Inc. was issued a state license in 2005 to operate 475 slot machines. The company has invested more than $70 million in Maine so far with plans to spend an additional $131 million for a larger gaming facility. Earlier this year, however, construction on the new facility halted temporarily when the Legislature’s Appropriations and Financial Affairs Committee discussed increasing the slot machine operator’s tax burden.

“The situation that occurred in May between Penn National and the state should never have happened,” Rep. Moore said. “A hole in the state’s budget shouldn’t be balanced on the backs of Maine businesses.”

The committee will explore ways to enhance stability for Bangor’s gaming facility through simplification of the tax and revenue sharing structure. Members will examine, among other things, the current tax structure for the slot machine operator and potential adjustments to the methods by which it is taxed.

The 11-member committee, created in June by executive order by Gov. John Baldacci, is comprised of two state representatives, two state senators, one representative of Penn National, one member of the Gambling Control Board, the Commissioner of the Department of Administrative and Financial Services, the Commissioner of Economic and Community Development, and three members of the public. One of the public members must have a background in the gaming industry.

The group will have until Dec. 1 to report any recommendations to the governor.

Rep. Moore is serving his third term in the House representing Standish. He is a member of the Legislature’s Legal and Veterans’ Affairs Committee, which oversees harness racing and gambling operations.