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Mississippi Tax Commission Wants Casino Tax Rules Clarified

JACKSON, Mississippi – As reported by the Mississippi Sun Herald: "The state Tax Commission wants legislators to "clear up the law" on whether the agency has the authority to calculate casino tax bills and to decide whether free-play credits casinos give gamblers are taxable.

"The House Gaming Committee on Thursday reviewed a recent court ruling on free-play taxes that went against the Tax Commission in a lawsuit filed by Beau Rivage casino.

"…In 2000, Beau Rivage, following the lead of Las Vegas casinos, began offering free-play credits to slot machine gamblers, who could use the credits to play slots at no cost. Before starting the new marketing program, Beau Rivage received an opinion from the Gaming Commission that the free-play credits would not count toward the casino's gross revenues, on which it is taxed. The commission also advised that jackpots won with free-play credits would count the same as other losses for tax purposes.

"But the Tax Commission, which collects taxes from casinos, saw the matter differently and said Beau Rivage must count free-play credits as income and could not count free-play jackpots as losses. It said the casino owed the state $5.5 million. Later, it revised its position to say only that jackpots won during free play can't be deducted, and that the casino owed $1.5 million.

"On Thursday, Ed Buelow Jr., state Tax Commission chairman, told Gaming Committee members he wants legislation that clearly gives his agency authority to calculate casino tax bills…"

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