vpFREE2 Forums

What's with taxes on comps in NV?

#1

Does anyone know the actual law regarding taxation of comps in Nevada? I
have heard that comps should not be taxed, but some places do, while others do
not. For example, if I have a $25 comp voucher at the Orleans or Gold Coast
and eat, the restaurants will take off any tax, then take the comp. So if I
order $25 worth of food, my $25 totally covers the bill - there is no tax.

But at other casinos, the situation varies. Sometimes I will have a "free"
dinner - like I did last night at the Luxor. The dinner was for food and
non-alcoholic beverages. They charged me tax and I had to pay. During a
similar "free meal" via a coupon at Arriva (Gold Coast) had no tax to pay.

Sometimes when paying for meals with points you are not charged tax.
Sometimes you are.

Is this all at the discretion of the casino, or is there actually some law
being followed.

If comps should not be taxed, I'd like to protest and be able to quote an
exact law for that.

Normally gratuities are never included in any comp, and should be paid at
the normal levels (generally 15% for good, 20% for excellent, and 10% for less
than normal - service).

But for taxes, I'm scratching my head!

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#2

Normally you do not pay tax on comped meals at restaurants owned by casinos, and do pay tax at restaurants not owned by them

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#3

<<Normally you do not pay tax on comped meals at restaurants owned by casinos,
and do pay tax at restaurants not owned by them>>

This is the way it is supposed to work - but we find the restaurant policies in Vegas on this vary a lot. I get tired of "educating" casinos - and we now just pay whatever the restaurant says we have to pay. The older I get the more apt I am to trade in some frugality for less hassle. You young players must take up the slack for me!!!

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________________________________________
Jean $¢ott - "FRUGAL VIDEO POKER"
This new book (autographed) and other
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   E-mail address is queenofcomps@cox.net.

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#4

There's another factor. If you pay with points that could be
converted into cashback (Coast, Sam's Rampart, etc.) they are
supposed to charge tax since it's not a comp, it is cash. I once
researched this with the Nevada agency responsible. So if you pay
with points at Billy Bob's you should pay tax, if you have a voucher
from a host you do not.

B

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At 03:02 PM 2/17/2007, you wrote:

Normally you do not pay tax on comped meals at restaurants owned by casinos,
and do pay tax at restaurants not owned by them

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

#5

Makes sense but you do not pay taxes on meals paid for by points at
Sams. I see the taxes vanish on the register the umpteen times a week I
eat there.

There's another factor. If you pay with points that could be
converted into cashback (Coast, Sam's Rampart, etc.) they are
supposed to charge tax since it's not a comp, it is cash. I once
researched this with the Nevada agency responsible. So if you pay
with points at Billy Bob's you should pay tax, if you have a voucher
from a host you do not.

B

>Normally you do not pay tax on comped meals at restaurants owned by

casinos,

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--- In vpFREE@yahoogroups.com, Bill Coleman <vphobby2@...> wrote:

At 03:02 PM 2/17/2007, you wrote:
>and do pay tax at restaurants not owned by them

#6

NRS 372.065:

Value of coupon issued to customer by retailer, without reimbursement from
outside source, is properly *excluded from sales price*. Where retailer
issues coupon which allows customer to buy at discount or grants customer a
price concession in form of rebate and is not reimbursed from outside
source, coupon or rebate represents "cash discount allowed and taken on
sales" within meaning of sections 11 and 12 of sales and use tax act enacted
as ch. 397, stats. 1955 (see NRS 372.025 and 372.065) and is properly *excluded
from measure of sales tax*.

There are some issues when the casino does not wholly own the venue
providing the comp.
But mostly, tax is charged to inflate the apparent value of the comp.
In other words, it's a scam.

TC

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On 2/17/07, Michael Boutot <vegas_iwish@yahoo.com> wrote:

  Makes sense but you do not pay taxes on meals paid for by points at
Sams. I see the taxes vanish on the register the umpteen times a week I
eat there.

--- In vpFREE@yahoogroups.com <vpFREE%40yahoogroups.com>, Bill Coleman
<vphobby2@...> wrote:
>
> There's another factor. If you pay with points that could be
> converted into cashback (Coast, Sam's Rampart, etc.) they are
> supposed to charge tax since it's not a comp, it is cash. I once
> researched this with the Nevada agency responsible. So if you pay
> with points at Billy Bob's you should pay tax, if you have a voucher
> from a host you do not.
>
> B
>
> At 03:02 PM 2/17/2007, you wrote:
> >Normally you do not pay tax on comped meals at restaurants owned by
casinos,
> >and do pay tax at restaurants not owned by them

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