Legislators Join In Effort To Overturn Nevada Tax Ruling

Nevada lawmakers are backing the Taxation Department's argument that a recent Supreme Court ruling on tax refunds could have devastating fiscal consequences for the state, which already has a $900 million-plus revenue shortfall.

In a brief filed in support of the agency's rehearing request, lawmakers said the court should reconsider its March 27 ruling and examine legislative intent on the question of whether free meals provided by casinos to patrons and employees should be taxed.

The brief says a constitutional amendment approved in the 1980s made food bought at grocery stores exempt from state sales taxes, but made clear that prepared food served in restaurants, including casino restaurants, was taxable.

The Taxation Department has been collecting taxes on the free meals provided by casinos to patrons and employees for years.

The Supreme Court ruling was made in a refund case brought by the
Sparks Nugget.


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