Louisiana Casinos Exempt from Sales Tax on Complimentary Gifts: Important Tax Notice Issued

• Louisiana Department of Revenue declared that complimentary items provided by casinos are not subject to sales and use tax
• Actual cash amount paid at the time of providing the item is considered the sales price for tax purposes
• Discounted items or services are taxed based on the actual cash amount paid, not the full sales price
• Theoretical or actual winnings by the casino are not considered as consideration for gifted items, so no sales or use tax is owed
• Casinos are subject to sales tax on the cost of items they gift, if purchased using a resale certificate
• Taxpayers should be aware of how tax is handled on discounted transactions and correctly charge and remit tax
• Use tax must be assessed if items purchased for resale are used by the business instead of being resold.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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