July 24, 2014
CARSON CITY, Nev. (AP) - A state board has approved the final piece of a settlement to end a decade-long legal fight over taxation of free meals provided by casinos to patrons and employees.
The Board of Examiners on Tuesday authorized $4.5 million in payments to casinos that paid the tax but are no longer in business.
State lawmakers this year approved a bill settling the dispute and absolving the state of a potential $233 million liability.
The issue had been winding through the legal system since 2003. Courts gave conflicting opinions and the issue was pending before the Nevada Supreme Court.
State officials feared an unfavorable ruling would drain state coffers.
Under the settlement, casinos agreed to drop their refund requests and the state agreed not to tax free meals in the immediate future.