Tax & Accounting Blog

Station Casinos Lose Big With Free Meals

Indirect Tax, ONESOURCE, Sales and Use Tax October 11, 2012

The Nevada Tax Commission has refused to refund more than $15 million to Station Casinos that have been paid in sales taxes on complimentary meals that it has given to players and employees over the past 8 years. Station attorney John Bartlett explained there is a court hearing coming up on 17 October 2012 in the District Court of Las Vegas to follow up on this issue. In his statement he noted other groups of casinos, Boyd Gaming and Caesars Entertainment, have also filed suits to reclaim millions of dollars in sales and use tax that has been paid out on free meals. Chris Nielsen, director of the Taxation Department in Nevada, said Station wanted about $15.3 million refund plus its interest, which would probably double the amount. In 2008, the Nevada Supreme Court ruled 8-1 that the state should not have collected sales tax on complimentary meals. They determined that giving away the meals was not a “taxable event.” In this case the Sparks Nugget won $1.3 million in back taxes. Across the state, there is about a $210 million dollar implication in the state’s final determination of whether or not these meals are taxable.

Read More: http://www.lasvegassun.com/news/2012/oct/01/station-casinos-loses-15-million-appeal-sales-tax-/

Read More: http://www.lasvegassun.com/news/2011/may/01/lawmakers-ignore-comped-meals-tax-issue-its-210m-i/