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Who saw this coming? Oh, yeah: Everybody

It wasn’t big news, but it’s an important story: The Nevada Supreme Court has declined to reconsider its ruling that comped meals served in casinos to patrons and employees are not subject to the state’s sales and use tax. The state thus owes millions in refunds to Nevada casinos, starting with the Sparks Nugget, which filed a lawsuit that led to the ruling.

The issue came up during the one-day special session of the Legislature June 27, and the Democratically controlled state Assembly had a solution: Pass a bill that establishes the Legislature always intended to tax comped meals, if not under the state’s “use tax,” then under it’s sales tax. (The reasoning: Hotels are “purchasing” the goodwill and repeat business of comped customers.) If that bill had passed, the court may have treated the motion for rehearing differently; at the very least, meals would still be taxed, and no refunds would have to be issued.

But no: On the inexplicable motion of state Sen. Randolph Townsend, and with the support of all 11 of the Senate’s Republicans, the upper house voted to kill the Assembly’s bill. (Townsend claimed he thought the state would prevail with it’s motion to reconsider, but those motions are granted infrequently.)

So now, a state seriously strapped for cash is going to have to dig into its coffers for refunds to casinos, which last we heard were still making money, albeit not as much as before. We suppose we’re fortunate that Nevada’s casino industry has promised to allow the state to make payments on what it owes. Just another way gambling works for Nevada.

Or, is it the other way around?

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Comments for this post will be closed on 16 October 2008.

2 Responses to “Who saw this coming? Oh, yeah: Everybody”

The state has more than enough money. Perhaps, they could enforce the immigration laws and deport the tax-sucking illegal aliens? Nevada owes most of their economy to the casinos. Go ahead and kill the goose that lays the golden egss and see what happens.

Written by: Charles Martel on Friday, Jul. 18, 2008 at 9:16 PM

Did anyone tell Sherm Frederick?

Written by: Vegas Quixote on Friday, Jul. 18, 2008 at 6:30 PM
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