L’Auberge Casino Fights $3M Tax Bill from Louisiana School District

A tax fight is brewing between the Calcasieu Parish School Board and L’Auberge Casino Resort. The school district claims the casino owes $3 million in unpaid taxes, interest that has built up, and penalties. The argument revolves around how to tax complimentary hotel rooms, a special rule in local tax laws.

L’Auberge Casino Fights $3M Tax Bill Over Free Rooms, School Board Cites Longstanding Law

The school board’s Sales and Use Tax Department says L’Auberge did not pay $2 million in taxes from 2021 to 2023. They also claim the casino owes another $1 million in interest and penalties, reported KPEL-FM. The school district argues that when the casino gives out free rooms, it counts as something they can tax. They point to a local law that has been around since 1991 to back this up.

L’Auberge has challenged the claim by submitting a petition to the Louisiana Board of Tax Appeals. A casino representative confirmed that they pay the local complimentary room tax now, but they dispute the school board’s attempt to impose an additional tax. The casino argues that the contested charges stem from a new interpretation of the law, even though state and parish laws have not changed.

The main debate centers on whether free hotel stays for guests, a common promotional strategy in the gambling industry, should be taxed. L’Auberge claims these rooms are not for sale, pointing out that guests do not have to gamble or buy anything during their stay.

Casino Tax Dispute in Lake Charles May Shape Future of Regulations in Louisiana

This argument is not limited to Lake Charles. Other Louisiana gaming spots face similar issues, like the Golden Nugget, where the tax appeals board sided with the taxing authority before. They decided that free offers were trades linked to gambling, so they could be taxed under current rules.

On June 3, the Calcasieu Parish School Board voted to hire local lawyer Rusty Stutes to handle the legal process and try to get back the disputed money. School leaders point out that casino taxes play a big role in funding public schools in the parish.

As the legal battle continues, both parties stand their ground. The appeal’s result could set a standard for how free services are taxed across Louisiana’s gambling scene. The issue remains under examination, and more updates are likely as the case moves through the state’s tax appeal process.