HARRISBURG -- State Gaming Control Board Chairwoman Mary D. Colins had welcome news for Pennsylvania homeowners yesterday. In July, four years after the slots law was enacted, they will finally get some modest property tax relief.

"Property tax relief totaling $853.8 million will be distributed to the taxpayers in [fiscal year] 2008-09," which starts July 1, she told the House Appropriations Committee during a hearing on her requested budget of $34.7 million.

"Every penny [of tax relief] is paid for from gaming revenues," she added.

The 2004 law placed a 34 percent state tax on the gross terminal revenue from the seven operating casinos. The bulk of the tax relief, $671.5 million, will be broad-based for all house and farm owners. In Philadelphia, the tax relief will be a cut in the wage tax rather than property taxes.

The other $182.3 million will go to people age 65 and older, as either property tax rebates or rent rebates for those who don't own property.

Gov. Ed Rendell urged the Legislature in 2003-04 to permit slots casinos, touting property tax cuts for homeowners. But because of legal battles and citizen opposition in some locations, the casinos haven't opened as quickly as he anticipated and the tax relief is only now poised to happen.

Ms. Colins said there are other state taxes on slots revenue that benefit the horse-breeding industry and host counties, and towns where casinos are located.

The Race Horse Development Fund has, to date, received $141 million in slots revenue, which aids horse owners, breeders, trainers and drivers. Another $47 million is going to counties and towns.

Kim Hankins, executive director of the Meadows Standardbred Owners Association in Washington County, said the harness racing industry was suffering for years, but with larger prize money for winners available through slots revenue, there is much greater interest in the sport than just two years ago.

Ms. Colins said her agency's proposed $34.7 million budget for fiscal 2008-09 is based on two sources of income. One is a $25 million loan from the property tax reserve fund, which now stands at $100 million and is in addition to the $853.8 million going for tax relief.

The second is from the casinos, which ultimately will pay the entire gaming board budget, once all 14 casinos authorized by law are in operation.