Wednesday, Oct. 25, 2000 | 11:10 a.m.
The MGM Grand hotel-casino is asking the state for a tax refund of more than $1 million, a request that's drawn fire from the Nevada Gaming Control Board.
The Nevada Gaming Commission is set to hear the MGM Grand's request at a Thursday meeting in Carson City. The control board, which has already denied the request, will oppose the hotel-casino's motion.
The fight emerged over different translations of state gaming regulations dealing with casino markers. Under state regulations, casinos aren't required to pay state gaming taxes on settled credit instruments.
This refers to the practice of wiping out some of a high-roller's marker debt. Casinos will often reduce these debts if they want to keep the business of a valued player, if there's a player dispute the casino wants to settle, or if the casino believes the player is unable or unwilling to pay the full amount. The state regulation allows the debt to be reduced for all of those reasons.
In the MGM Grand's case, the hotel-casino is asking for tax exemptions on more than $15 million in settled markers between September 1996 and December 1997. If MGM Grand received the exemptions, it would be entitled to a $1.03 million tax refund.
But control board member Dennis Neilander said the board believes the forms used to request these exemptions weren't filled out properly. Casinos are required to give a reason for the write-off; in the case of many of the disputed tax exemptions, the MGM Grand reduced the amount owed on the markers by the amount spent by the patron on air fare, then listed the reason as "air fare settlement."
"That's a promotional item," Neilander said. "It's not something you can deduct."
In other cases, Neilander said the forms gave no reason at all for the settlement.
Neilander said a similar case arose last year involving markers at the Las Vegas Hilton, though the commission denied this request. In this case, Neilander said, the commission will be asked to make a ruling on whether promotional items like air fare can fall under the umbrella of reasons for writing off marker debt.
Ellen Whittemore, the attorney representing MGM Grand in the case, said she couldn't comment as the case is pending.
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