Casino Connection Nevada

State Seeking New Tax

by Staff

Nevada’s Attorney General is asking the state Supreme Court to reconsider a ruling from last month that found the free meals casinos supply to employees and guests are not subject to taxation.

The court ruled six to one in March in a case brought by the Sparks Nugget casino against Nevada’s Department of Taxation that the meals are not taxable.

The state is dealing with a budget shortfall of nearly $900 million, but the new ruling could make that situation worse. If it stands, the ruling state will have to refund $1.3 million to the Sparks Nugget alone, but that number will grow dramatically when the other casinos in the state seek reimbursement as well.

Requests for the court to reconsider ruling are often sought but seldom granted. Nevada law allows re-hearings only when the court overlooked or misunderstood relevant facts or when questions of law have been misapplied.