Nevada – Settlement Reached in Complimentary Meals Lawsuit

SALT Report 2737 – The Nevada Department of Taxation issued a notice announcing that they have reached a global settlement in the $233 million complimentary meal lawsuit between the Department of Taxation and Nevada casinos, restaurants, and resorts.

As part of the agreement, the companies have agreed to waive their right to any potential use tax refunds and the State has agreed to waive its right to assess sales tax. Therefore, the cases that are currently being litigated will be dismissed and the files will be permanently closed by the Department of Taxation.  Once these files are closed, there will be no use tax refunds or sales tax payments based on a previous liability assessment.

If you wish to be included in the settlement, you must agree to the terms of the Settlement Agreement.  Once an Agreement is signed and received by the Department, the applicant’s name will be added to Exhibit A and a fully executed copy of the Agreement will be sent to the applicant.  At this point the claim will be closed.

Going forward, the 2013 legislative session created an exemption for complimentary meals.   As a result sales and use tax will no longer be due on meals provided to patrons and employees, effective June 13, 2013.  This exemption was previously discussed in SALT Report 2604.

For Further Information

Nevada Department of Taxation – Complimentary Meals Settlement Information

Nevada State Legislature – AB 506