October 24, 2014
CARSON CITY, Nev. (AP) - Nevada lawmakers made short work on a late-session measure to settle a decade-long dispute and cement a $233 million settlement over taxation of free meals provided by casinos.
The Senate late Monday approved AB506 on a unanimous vote, sending it to the governor.
A Sparks casino sued in 2003, arguing it shouldn't be required to pay the tax on comped meals. In 2008 The Nevada Supreme Court struck down imposing a use tax on free meals but left unresolved the question of whether such meals are subject to sales tax.
Other casinos also filed for refunds.
Under the bill the state agrees not to tax free meals in the future. In exchange the casinos will withdraw claims for refunds.