Pennsylvania’s Luzerne County is seeking a tax on complimentary hotel rooms booked by the Mohegan Sun Pocono casino.
The tax is being sought by Chief Solicitor Romilda Crocamo and Assistant Solicitor David Schwager, but the county controller’s office is resisting it. Controller Michelle Bednar recently released a 14-page report arguing against the proposed tax. The solicitor’s office released a seven-page report opposing the controller.
The solicitor’s office has recommended that the county pursue collection of unpaid and unreported taxes on the comp rooms awarded by the casino hotel. County Manager C. David Pedri has indicated the county will proceed with collection action against Mohegan Sun.
It is a subject likely to ultimately be resolved in the courts.
Bednar’s report argues that language in the county tax ordinance indicates taxes are due if the room is occupied “for consideration,” which she maintains means “for payment.”
“Since no payment is exchanged in the case of complimentary rooms, we assert that complimentary rooms are not subject to the hotel tax. Furthermore, we believe that to charge hotel tax on complimentary rooms would demonstrate non-compliance with county regulations,” the report said.
A previous controller’s office review of the Mohegan Sun hotel tax paid in 2016 said Mohegan Sun was entitled to a $7,323.48 refund for taxes paid on complimentary rooms for January 2016.
