Friday, April 27, 2012

Meal Comps Taxed?

Hello. Last week while I was paying for our meal in AC at the coffee shop in Harrahs, I watched the cashier explain to a guest that since she was paying for her meal with comps from her TR card, that he would remove the tax from her bill and thus save her a few dollars of comp money. I had never noticed this before. I was LFB and charged our meal to my room. It had me wondering, that if I was not LFB but charging to my room to pay my meals with comps at check out, would I be then be paying taxes on all meals charged to my room? I think if that is the case, it is a better idea to pay meals directly with the cashier so that they know the meal is comped and have tax removed at point of sale and avoid using comp dollars for taxes. I know its only a few dollars here and there but it could add up.

I have been going to AC for years and I really never paid attention to taxes on comp meals. Does anyone know if there is a NJ tax law or a Harrah%26#39;s policy or was this just a random mistake on the cashier%26#39;s part?

Meal Comps Taxed?

I have found over the years that the casinos treat the usage of comps as a reduction of the selling price of the meal, thus reducing the meal price to zero and eliminating the sales tax.

I never charge back to my room for that reason. The tax can amount to maybe $20 per trip, and I love the idea of avoiding a tax.

LFB means nothing unless you have no comps.

Tony

Meal Comps Taxed?

In our case, our charges exceeded our comp balance so it was a bonus. Since we never carry large comp balances, LFB is always a plus. We don%26#39;t abuse it and have gotten it often. We are only Platnium and I love this perk! When we are not LFB and have to use our comp balance, I will be certain to request food tax to be removed before they charge my TR card. Thanks very much for your information.


In the past if I used RC%26#39;s to pay for a meal at Cafe Roma (Caesars) tax would be charged.

But if I used one of those $20 coupons that came in my monthly mailer tax would NOT be charged.

MANY years ago when I got a $3 pizza slice at showboat the cashier would press a ';Tax Forgiven'; button on the register and my $3 food voucher from the bus trip would take care of the bill.


I think different casinos treat it differently. We always noticed that Trump Marina subtracted the tax but Harrahs didn%26#39;t. The way they run AC, it could also be each cashier doing it differently! Who knows???

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