Harrah’s New Orleans would get a major tax break under legislation approved by the Louisiana state Senate. The bill would provide for the state to begin receiving a $1.3 million per year payment from Harrah’s in lieu of current law that has the casino company paying state sales, use and occupancy taxes that add up to about $1.6 million per year to two state entities, the Louisiana Stadium and Exhibition District (which oversees the Superdome, among other things) and the Ernest N. Morial New Orleans Convention Center.
The state is apparently moving to cut a deal with Harrah’s after the state Supreme Court affirmed that Harrah’s owes the state about $43 million in taxes not paid while contesting the law.
The court ruled that Harrah’s owes the back taxes to the state for rooms it comps at its hotel across the street from the casino on Poydras Street but not for rooms it comps at hotels owned by others.
“This ends the lawsuit,” said Sen. Gary Smith, D-Norco, who handled the legislation in the Senate, in an interview with The Advocate.
Kimberly Robinson, the state secretary of Revenue, told the publication that Governor John Bel Edwards is supporting the legislation as part of a larger deal with Harrah’s that will end the lawsuit in which the company for years has challenged state taxes on hotel rooms it comps for its guests.
“The administration is working on a resolution for a broad set of issues that support the overall New Orleans tourism infrastructure,” Robinson said.
Under a 2019 agreement with the state, Harrah’s has begun work on a $325 million investment that will build an additional hotel on top of the existing casino. Harrah’s will also upgrade other parts of its existing facilities.
