Las Vegas Sun

October 25, 2014

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Harrah’s to get $4.4 million tax refund on planes

CARSON CITY — The Nevada Supreme Court ruled today that Harrah’s Operating Co. is entitled to a $4.4 million refund on the use tax paid on two planes purchased out of state.

The gaming company had sought an $8.6 million refund on four aircraft it purchased in 2006 to fly employees and customers on business trips.

The jets were all purchased outside Nevada, and no sales tax was imposed, according to court documents.

The court said two of the planes were used in interstate commerce and qualified for the use-tax exemption. They were purchased in Portland, Ore., and made their first flights with passengers to California and Arkansas.

The court found that the first flight of the other two planes, purchased in Arkansas, were to Las Vegas.

“Because property purchased out of state and then brought into Nevada is generally presumed to have been purchased for use in the state,” the use-tax exemption does not apply, according to the decision authored by Justice Michael Cherry.

The decision partially overturns the ruling of Clark County District Judge Kenneth Cory, who held Harrah’s was not entitled to any tax refund.

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