Court bars Luzerne County from taxing free casino rooms
The Pennsylvania Commonwealth Court ruled that Luzerne County cannot tax complimentary rooms at Mohegan Pennsylvania casino.Summary
The Pennsylvania Commonwealth Court has affirmed a ruling preventing Luzerne County from taxing complimentary rooms offered by Mohegan Pennsylvania casino. The county had assessed the casino $1.3 million for taxes on these rooms provided between January 2016 and August 2018, but the court found that no payment or exchange of value occurred for the complimentary rooms, thus no tax was applicable. The court highlighted that the casino does not receive any 'consideration' for the rooms, meaning there's no 'quid pro quo' as required by the tax law. The county’s assessment was based on an assumed 100% occupancy rate and a $159 per night room rate, which the court deemed speculative and lacking clear justification. The ruling upholds a previous decision by Luzerne County Judge Lesa S. Gelb in favor of the casino.
(Source：Scranton Times-tribune)