vpFREE2 Forums

What's the story with taxation of food comps??

#1

I've heard that food comps in Nevada should not be taxed, but sometimes we
do get taxed. At the Coast casinos, if you have a comp, the restaurants don't
tax you. But at Venetian they insisted you had to pay the tax.

Is the discrepancy due to casino-owned restaurants versus private, or based
on something else entirely? Is there a difference if you have a comp for a
"meal" versus a amount-type comp (like $100)?

And if we really shouldn't be taxed, is there a Nevada tax code we can quote
to get some relief?

Any info would be greatly appreciated. Thanks!

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[Non-text portions of this message have been removed]

#2

<<I've heard that food comps in Nevada should not be taxed, but sometimes we

do get taxed. At the Coast casinos, if you have a comp, the restaurants
don't
tax you. But at Venetian they insisted you had to pay the tax.

Is the discrepancy due to casino-owned restaurants versus private, or based

on something else entirely? Is there a difference if you have a comp for a

"meal" versus a amount-type comp (like $100)?>>

If money changes hands, sales tax is charged. None of the Venetian
restaurants are owned by the hotel, so comp meals incur sales tax. At other
hotels, some restaurants may be owned by the hotel. If you get a comp there,
no money changes hands and there is no sales tax.

Cogno

#3

misscraps wrote:

I've heard that food comps in Nevada should not be taxed, but
sometimes we do get taxed. At the Coast casinos, if you have a comp,
the restaurants don't tax you. But at Venetian they insisted you had
to pay the tax.

Is the discrepancy due to casino-owned restaurants versus private, or
based on something else entirely?

I would expect the reason is entirely the one that you suggest. With
a comp that the casino provides for free from their own operations, it
can be reasoned that there is no outright cash transaction.

However, when the meal is sourced from an independent party who is
reimbursed for the cost, sales tax collection by that entity can't be
avoided. The meal will be deemed to have been sold to the casino,
paid by them, and transferred to you. It's within the casino's right
to provide the comp with the specification that you're responsible for
related sales tax.

- Harry

#4

I've heard that food comps in Nevada should not be taxed, but sometimes we

do get taxed.

Is the discrepancy due to casino-owned restaurants versus private, or

based

on something else entirely?

And if we really shouldn't be taxed, is there a Nevada tax code we can

quote

to get some relief?

Great question! In Oklahoma we have to deal with the hypocrisy of the
Indian Casinos. They're recognized as a sovereign nation, and when you get
on their reservation you're subject to their laws. Except when they don't
want that.

They, just like the US Postal Service, cherry-picks and chooses when they're
government, or governed, and what they want to follow and what what they
don't want to follow. There's no appeal, what they say goes. No health
inspections. But just this year they started collecting sales tax for the
state. They're just like mercury looking for a way out.

No use wasting our time talking to 'em here. You'll never get a straight
answer.

[Non-text portions of this message have been removed]

···

On Jan 22, 2008 12:25 AM, <misscraps@aol.com> wrote:

#5

Get a comp to cover the full amount of the food and
leave a cash tip and let them figure it out. Run from
the table as fast as you can :slight_smile:

···

--- Cogno Scienti <cognoscienti@gmail.com> wrote:

<<I've heard that food comps in Nevada should not be
taxed, but sometimes we

do get taxed. At the Coast casinos, if you have a
comp, the restaurants
don't
tax you. But at Venetian they insisted you had to
pay the tax.

Is the discrepancy due to casino-owned restaurants
versus private, or based

on something else entirely? Is there a difference
if you have a comp for a

"meal" versus a amount-type comp (like $100)?>>

If money changes hands, sales tax is charged. None
of the Venetian
restaurants are owned by the hotel, so comp meals
incur sales tax. At other
hotels, some restaurants may be owned by the hotel.
If you get a comp there,
no money changes hands and there is no sales tax.

Cogno

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#6

I've heard that food comps in Nevada should not be taxed, but

sometimes we

do get taxed. At the Coast casinos, if you have a comp, the

restaurants don't

tax you. But at Venetian they insisted you had to pay the tax.

Well, what about NON-food comps? If you buy a box of cigars in the
Harrahs gift shop (I've done this) the cashier will tell you the price
is, for example $10.73. But when you present your Total Rewards card
for payment, your receipt will say $10 and a separate listing
labled "Tax Forgiven" shows the difference. And only the $10 is taken
out of your Total Rewards account.

···

--- In vpFREE@yahoogroups.com, misscraps@... wrote:

#7

If you buy a box of cigars in the Harrahs gift shop (I've done this)
the cashier will tell you the price is, for example $10.73. But when
you present your Total Rewards card for payment, your receipt will say
$10 and a separate listing abled "Tax Forgiven" shows the difference.
And only the $10 is taken out of your Total Rewards account.

At $10 per box, those gotta be pretty nasty cigars! :slight_smile:

Don the Dentist

···

--- In vpFREE@yahoogroups.com, "npf152512" <npf152512@...> wrote:

#8

The law in Nevada is that there is no tax applied to comps IF:
1. The facility is owned by the casino
2. The points CANNOT be used for cash back

Otherwise, tax applies.

···

At 04:21 PM 1/22/2008, you wrote:

--- In vpFREE@yahoogroups.com, "npf152512" <npf152512@...> wrote:
If you buy a box of cigars in the Harrahs gift shop (I've done this)
the cashier will tell you the price is, for example $10.73. But when
you present your Total Rewards card for payment, your receipt will say
$10 and a separate listing abled "Tax Forgiven" shows the difference.
And only the $10 is taken out of your Total Rewards account.
>

At $10 per box, those gotta be pretty nasty cigars! :slight_smile:

Don the Dentist

vpFREE Links: http://members.cox.net/vpfree/Links.htm

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#9

Where in NRS does it state that?

···

--- Bill Coleman <vphobby2@cox.net> wrote:

The law in Nevada is that there is no tax applied to
comps IF:
1. The facility is owned by the casino
2. The points CANNOT be used for cash back

Otherwise, tax applies.

At 04:21 PM 1/22/2008, you wrote:
>--- In vpFREE@yahoogroups.com, "npf152512"
<npf152512@...> wrote:
>If you buy a box of cigars in the Harrahs gift shop
(I've done this)
>the cashier will tell you the price is, for example
$10.73. But when
>you present your Total Rewards card for payment,
your receipt will say
>$10 and a separate listing abled "Tax Forgiven"
shows the difference.
>And only the $10 is taken out of your Total Rewards
account.
> >
>
>At $10 per box, those gotta be pretty nasty cigars!
:slight_smile:
>
>Don the Dentist
>
>
>
>
>vpFREE Links:
http://members.cox.net/vpfree/Links.htm
>
>
>Yahoo! Groups Links
>
>
>

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#10

Actually, it doesn't.

I spoke to the tax people a couple of years ago and this has evolved over time. That's how they enforce the statute.

···

At 08:24 PM 1/22/2008, you wrote:

Where in NRS does it state that?

--- Bill Coleman <vphobby2@cox.net> wrote:

> The law in Nevada is that there is no tax applied to
> comps IF:
> 1. The facility is owned by the casino
> 2. The points CANNOT be used for cash back
>
> Otherwise, tax applies.
>
> At 04:21 PM 1/22/2008, you wrote:
> >--- In vpFREE@yahoogroups.com, "npf152512"
> <npf152512@...> wrote:
> >If you buy a box of cigars in the Harrahs gift shop
> (I've done this)
> >the cashier will tell you the price is, for example
> $10.73. But when
> >you present your Total Rewards card for payment,
> your receipt will say
> >$10 and a separate listing abled "Tax Forgiven"
> shows the difference.
> >And only the $10 is taken out of your Total Rewards
> account.
> > >
> >
> >At $10 per box, those gotta be pretty nasty cigars!
> :slight_smile:
> >
> >Don the Dentist
> >
> >vpFREE Links:
> http://members.cox.net/vpfree/Links.htm
> >
> >Yahoo! Groups Links
> >
>

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