In a groundbreaking move that could have significant implications for the gambling industry in Indiana, a major casino has asked the state’s Supreme Court to review the scope of a controversial tax law that requires casinos to “add back” certain expenses when calculating their taxable income.
The law in question, known as Indiana Code Section 6-3-1-3.5, was enacted in 2017 and has been a point of contention for casinos in the state ever since. Under the law, casinos are required to add back certain deductions for federal income tax purposes when calculating their Indiana taxable income, effectively increasing the amount of tax they owe to the state.
The casino, which has chosen to remain anonymous at this time, argues that the add-back law unfairly targets the gambling industry and places an undue financial burden on casinos operating in Indiana. In its petition to the Supreme Court, the casino claims that the law violates the state constitution’s uniformity clause, which requires that taxes be applied to all taxpayers in a fair and equal manner.
The casino’s petition also raises questions about the constitutionality of the add-back law, arguing that it exceeds the state’s authority to tax and could potentially stifle economic growth in the gaming industry. The casino points to neighboring states with more favorable tax policies for casinos, such as Illinois and Ohio, as evidence that the add-back law puts Indiana casinos at a competitive disadvantage.
The Supreme Court’s decision to hear the case could have far-reaching implications for the gambling industry in Indiana and beyond. If the court rules in favor of the casino, it could open the door for other casinos in the state to challenge the add-back law and potentially seek refunds of taxes paid under the law.
On the other hand, if the court upholds the law, it could signal a significant victory for the state’s revenue department and lawmakers who argue that the add-back provision is necessary to ensure that casinos pay their fair share of taxes.
The Supreme Court has not yet announced whether it will hear the casino’s petition, but legal experts predict that the case could have a significant impact on the future of the gambling industry in Indiana. Stay tuned for updates as this story unfolds.
