American Canyon files criminal charge against card room
The ongoing dispute between the city of American Canyon and the owner of Napa Valley Casino over city taxes escalated this month with the city filing a misdemeanor criminal complaint.
The city accuses the card room owners — Brian Altizer and BVK Gaming Inc., the corporation formed by Altizer, his wife, Von Huang, and partner Keith Miller — of a violation of municipal code by not paying card room admissions taxes and requests a warrant for his arrest.
The complaint alleges that Altizer has ignored two invoices from the city totaling $108,000 for taxes due from Jan. 1 through June 30 of this year.
In accusing Altizer of a misdemeanor violation of the law, the city says disposition of the case could involve back payment, a fine of 10 percent plus 1 1/2 percent of the tax per month and/or jail time for the card room owners, as well as revocation of the card room operation permit.
The card room admissions tax, an initiative passed by American Canyon voters in November as Measure F, calls for a $2 per visitor levy on card room customers. According to the initiative, that tax could be superseded by a development agreement.
The casino and the city ostensibly reached such an agreement over the summer after months of negotiations. Announced at a City Council meeting in July, the terms of the development agreement would have included a tax on gross receipts and eliminated the admissions tax, with the owners allowed to expand the casino.
Earlier this month, the City Council passed a resolution to force the card room into compliance following reports that Altizer and his partners have been in talks with the city of Cudahy in Southern California to open a card room there, with Cudahy receiving considerably more tax revenue than the American Canyon deal.
According to city’s criminal complaint, Altizer has refused to show the city his books for an audit.
Altizer and his partners acquired the card room in 2006, and in 2007 petitioned the city to allow “no limit” wagering and to expand the card room. As a condition for expansion, the city demanded more revenue and property improvements.
American Canyon City Attorney William Ross, who will be prosecuting the case, declined to elaborate. “The complaint speaks for itself,” he said.
Altizer’s attorney, Craig F Andersen of Wood Smith Henning and Berman, said he plans to respond to the charge with a civil suit.
“We’re going to be filing a complaint ourselves, probably Monday. Ours is a civil compliant. It’s our position that (the admissions tax) is unconstitutional,” Andersen said.
The complaint filed by the city states: “No civil action shall prevent a criminal prosecution for any violation ...”
The non-payment of city taxes is considered a violation of the will of the electorate, Ross said. Criminal actions in such cases are not uncommon, he said.
“It is not unusual for a city to seek compliance with its municipal code,” said Ross.
Ross said that a criminal action doesn’t preclude a future civil action on the city’s part.
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