Nevada commission to pay back $3M in overpaid taxes to Dotty’s

The Nevada Gaming Commission on Monday agreed to refund more than $3 million in overpaid taxes to the operator of 41 licensed casinos, including several under the Dotty’s and Bourbon Street Sports brands.

But it will take a little longer for a second request for overpaid taxes of an additional $1.8 million.

Under a stipulation for settlement approved unanimously by commissioners, operator Nevada Restaurant Services Inc., submitted a claim for a refund of $3,120,197.28 plus interest of $222,744.12. But in August, commissioners balked at paying the interest because the company took so long to file the claim and the interest was accruing at a rate of about $446 a day.

NRSI agreed to waive its claim to the interest payment, but in researching the matter, the company determined that it was eligible to file a claim for a refund for an additional two years of tax overpayments. NRSI decided that it would seek the principle amount on that $1.8 million in additional overpayments, but not the interest.

The overpayments resulted from NRSI not properly deducting wagered cashable electronic promotion amounts from gross revenue of $46.9 million. When a company calculates its revenue to determine how much tax it must pay, it can deduct certain promotional costs, and NRSI failed to do that.

The company is expected to file an additional request for a refund in future weeks.

The effort to resolve the overpayment without interest was led by Commission Brian Krolicki, a former Nevada state treasurer.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.