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Appeals Panel Sides With Tax Board on Dodge City Casino

staff - January 2, 2016 7:02 am

A Kansas Court of Appeals panel has ruled that a Dodge City casino doesn’t have to pay the state’s “use tax” on electronic gaming machines it operates for the Kansas Lottery.

The three-judge appeals panel agreed with a state Board of Tax Appeals decision that said the Kansas Department of Revenue was wrong in collecting $801,588 in compensating use tax from the Boot Hill Casino and Resort in Dodge City.

The Topeka Capital-Journal reports the tax was from the casino’s purchase of out-of-state vendors’ electronic gaming machines on behalf of the Kansas Lottery, the state agency that oversees operations at three state-owned casinos.

The Court of Appeals panel said the casino isn’t obligated to pay the tax because it doesn’t own the equipment but manages them for the lottery.