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Friday, April 05, 2013

Ind. Courts - Supreme Court receives certified question from 3rd Circuit re racino slots

A copy of the April 8th issue of the subscription-only weekly newsletter, Indiana Gaming Insight, leads with a long story headed "3rd Circuit punts tax Qs back home."

For background, see this June 25th, 2012 entry in the Indiana Tax Reporter, headed "Delaware Deciding Significant Issues of Indiana Tax Law in Casino Bankruptcy; Indiana Supreme Court Denies Transfer to Hear Matter."

A few quotes from the long story in Gaming Insight:

In case you were waiting on the Tuesday, April 23 oral argument before the U.S. Court of Appeals for the Third Circuit in Philadelphia in In re: Indianapolis Downs LLC, No. 12-1582, you should know that the case was removed from the federal appellate court’s calendar last month at the direction of the court.

But the reason for the cancellation of the oral argument is of immense interest: the court pulled the plug because it had decided to certify to the Indiana Supreme Court the question at the heart of the Indiana Department of Revenue’s appeal of the controversial ruling by the U.S. Bankruptcy Court for the District of Delaware on the 15% racino slot wagering tax set-aside: “Are the funds that racinos must distribute pursuant to Ind. Code § 4-35-7-12 included in ‘adjusted gross receipts received’ for purposes of the Graduated Wagering Tax, Ind. Code § 4-35-8-1?”

Here is a copy of the 3rd Circuit Petition for Certification of Question of Law sent to the Indiana Supreme Court, dated March 1, 2012.

The Gaming Insight story ends the suggestion that because:

as the Senate budget architect, Senate Committee on Appropriations chair Luke Kenley (R) of Noblesville, explained it, the reduction [in the Senate version of the budget unveiled Thursday] memorializes the private settlement reached between the Daniels Administration and the racinos over the disputed 15% set-aside to the horsemen ...
the issue posed to our Supreme Court may be soon mooted by our General Assembly's action.

Posted by Marcia Oddi on April 5, 2013 01:42 PM
Posted to Ind. Sup.Ct. Decisions