Indiana Department of Revenue says Penn Entertainment should be denied tax write-off
The department has asked the Supreme Court to uphold a previous tax court ruling.
Indiana’s Revenue Department has addressed the state’s highest court regarding Penn Casino’s income tax case, according to a recent Bloomberg Law report.
The department said Penn Entertainment “shouldn’t be allowed to write off income it generated in Indiana just because it used the funds to pay taxes to other states.”
The legal battle between Penn Entertainment and the Indiana Department of Review followed an audit that the revenue department had conducted on several of Penn Casino’s tax returns. The Department of Review concluded that the company owed additional taxes, penalties and interest.
Penn Entertainment challenged the state’s add-back provision, claiming that it is unconstitutional. The company submitted is appeal following an Indiana Tax Court ruling that upheld the add-back provision.
Per the terms of the provision, Indiana businesses are required to add deductions that are permitted by federal law for taxes that measured by income paid to other states when calculating adjusted gross income.
In the Penn case, the company requested that the Indiana Supreme Court to reverse the tax court ruling that says, “gambling taxes it paid to 10 states fall under the provision.”
However, the Department of Revenue maintains that Penn is not entitled to the write-off.
Penn Entertainment broke ground last year on a new site for its Hollywood Casino Aurora destination. Hollywood’s current location will continue to operate under its normal business hours until construction on the new casino is complete.
Penn said it expects the new building project will take roughly two years to finish, so guests can expect the new casino to open during 2026.
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