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Saturday, October 02, 2004

Indiana Decisions - More on October 1st transfer list

Among the cases denied transfer by the Indiana Supreme Court yesterday was:

Aztar Indiana Gaming Corp. v. Indiana Dept. of State Revenue (4/19/04 IndTaxCt) (Access IBL summary and case link here; last case)

As reported today by Lesley Stedman Weidenbener of the Louisville Courier-Journal:

INDIANAPOLIS Indiana's 10 casinos owe the state an estimated $200 million in back taxes and could have to pay $30 million to $50 million more in corporate income taxes annually under a ruling the Indiana Supreme Court has allowed to stand. * * *

In April, the Indiana Tax Court ruled in a case involving Casino Aztar in Evansville that the gambling boats can't reduce their taxable corporate income by the amount they've already paid the state in wagering taxes.

That's what the casinos have been doing since their inception, in part because the deduction is allowed under the federal tax system and in most other states, [Mike Smith, executive director of the Casino Association of Indiana] said.

But the Indiana Department of Revenue has long held that it is not permitted under state law and ordered the casinos to pay more. That led to the tax court decision, which the casinos appealed. This week, the Indiana Supreme Court declined to take the case.

"The Supreme Court was basically our last option," although casino attorneys are looking for other ways to fight the decision, Smith said. * * *

The court decision comes on the heels of another ruling that forces the casinos to pay a "use tax" when they purchase their gambling boats and bring them into Indiana.* That decision could cost Caesars Indiana and other boats several million dollars.

"It wasn't a rosy week for the gaming industry," Smith said. "This is a pretty sad thing for the industry."

Various casino taxes are projected this year to generate as much or more money for the state than all other corporate taxes combined.

*The use tax decsion referenced above is Indiana Dept. of Revenue v. Trump Indiana, Inc. (9/21/04 IndSCt) (Access IBL summary and case link here.)

Posted by Marcia Oddi on October 2, 2004 08:20 AM
Posted to Indiana Transfer Lists