Nevada Attorney General Catherine Cortez Masto is asking the state Supreme Court to reconsider a ruling that casinos do not have to pay taxes on meals they provide to customers and employees for free.

John Ascuaga’s Nugget in Sparks fought all the way to the Supreme Court, which ruled in May that the casino was due a $1 million refund. The court ruled that because the food was given away and not sold, taxes were not due.

Deputy Attorney General Gina Session said the ruling could have devastating financial consequences for the state if it stands. While the exact number isn’t known, if the ruling stands, many casinos with larger food budgets, including many of the resorts in Las Vegas, are expected to apply for a refund. That could cripple a state that is already facing a severe budget shortfall.

The court has asked attorneys for the Nugget to respond to the state’s petition by July.

By Casino Connection Staff

Please login to post your comments.