From Vital Vegas
https://www.casino.org/vitalvegas/asshat-lawyers-file-frivolous-lawsuit-against-circa-for-charging-sales-tax/?fbclid=IwAR1-Qwri537ARGP2nA7uaOsTmn3-iQ_jFd2S_e3mX-tF45N6CrZbpRSjNyI_aem_Ab1H0KBObB-PsOB1jiqOYt5vBGMO41AHLMdAS4bwXDEk0qbyCgCM2cEcK2WLgX02dyE
It's a common complaint when casinos charge tax on comp accounts for leased vs owned FnB. Hope the plantiff wins. Comparing that to the complaints of F1's epic hassle?
The only donkey in the piece is the author. Does this guy really think he's funny?
This is a tricky situation. When the food outlet is owned by the hotel/casino, then there is no sales tax added to the bill when a comp is being used. Examples are the 4Q, Binions, Rampart, South Point. Note on SP - Zenshin Asiian is NOT owned by SP and tax is added. We found this out a few months ago.
Therefore I believe that when a food outlet is NOT owned by the hotel/casino, then tax is added.
Can anyone confirm?
Don, your explanation makes good sense to me. Sales tax is owed on the retail price of the food. When the food is comped by the owner of the business, the meal is no longer charged at retail. However, a complementary "use" tax is imposed on the owner's cost of providing or consuming a comped meal. That's why you don't see sales tax charged on owner comps. However, independent outlets are not comping the food. Instead, they are likely being reimbursed by the owner for accepting the points and comps of the player under a separate agreement with the casino. Therefore, they are still charging full price at retail and must collect sales tax - then get reimbursed for all of it by the casino.
