Las Vegas Sun

March 28, 2024

Casinos get more time to pay sales tax on comped meals

CARSON CITY — Nevada casinos have a grace period before they must pay millions of dollars in sales tax on the meals they comp to gamblers and free meals given to their employees.

The tax took effect Feb. 15 and the first tax payments were due at the end of March. But William Chisel, director of the state Department of Taxation, said casinos will be granted a "breathing period."

"Because the department recognizes that certain businesses may be incurring administrative burdens to begin and collect the sales tax on this type of food, the department will provide a grace period through July 31," the agency said.

Casinos that fail to pay the tax face penalties as high as 25 percent, plus interest.

Meanwhile, a Las Vegas man says he is attempting to patent a system that he says could be at least a partial solution to casinos' tax liability on comped meals.

Rod Lamas said he doesn't believe the casinos will eliminate or cut complimentary meals for high rollers, but it could lead to fewer perks for small gamblers who earn points in reward programs that they redeem for meals.

Lamas' proposal would grant small players the free buffet but the individual would pay the sales tax on the meal.

Lamas said he got the idea from the airline industry, where he worked. Employees who received free flights had to pay the tax on them, he said.

If the U.S. Commerce Department approves his patent, he said casinos would not be able to use it without his permission. And he could lease or sell it.

Meanwhile, the tax department is going to hold a workshop Monday to set the final regulations on the tax for comped and free meals.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy