Boyd Gaming Sued By Tourism Agency
The LaPorte County Convention & Visitors Bureau has filed a lawsuit against a Michigan City casino owned by Boyd Gaming (BYD: 8.51 0.00%).
The visitor’s bureau is asking the court to order Blue Chip Casino to pay $300,000 owed from 2007, 2008 and 2009 under the innkeeper’s tax law.
Mike Bergerson, an attorney for the bureau says that state law requires hotels to pay a 5% tax on each room and that money is then forwarded to agencies involved in promoting tourism.
However Boyd Gaming has requested a refund for a percentage of rooms given to gamblers “on the house”.
Boyd has based the refund and a request to have the tax excluded from complimentary rooms in the future on a decision made by the Indiana Court of Appeals in 2007 that ruled the Horseshoe casino did not have to pay sales tax on items given away.
“We think we have a legal precedent on our side in this case,” said David Strow, a spokesman for Boyd Gaming.
However Bergerson is arguing that the difference is in the language governing both taxes, sales tax is assessed on merchants who sell something whereas the innkeeper’s tax is for rooms rented or furnished, and a room, although free, is furnished and subject to the tax.
Join the forum discussion of this news story - (1) PostsRelated posts:
