Recent Developments in Indiana Taxation - I.U. School of Law ...

1172 INDIANA LAW REVIEW [Vol. 40:1103
settlement agreements that would otherwise alter the imposition of inheritance
tax. 799
C. Riverboat Wagering Tax: RDI/Caesars Riverboat Casino, LLC
v. Indiana Department of State Revenue 800
On September 3, 2004, Caesars appealed the calculation of its Riverboat
801
Wagering Tax (RWT) for July 1, 2002, through June 30, 2003. The opinion
802
was on Caesar’s motion for summary judgment, filed on January 27, 2000. In
2002, the GA legalized flexible scheduling for riverboat casinos beginning July
803 l, 2002. The same legislation implemented a graduated tax rate on the adjusted
gross receipts of those riverboats that chose to implement flexible scheduling. 804
Riverboats that did not implement flexible scheduling continued to pay a flat rate
805
of tax on their adjusted gross receipts. The 2002 legislation originally applied
the graduated tax rates to adjusted gross receipts beginning with the date that the
806
casino implemented flexible scheduling. Caesars implemented flexible
807
scheduling on August 1, 2002. Based on the 2002 statute, Caesars calculated
808
its RWT for July 2002 at the flat tax rate. Then, it began calculating the tax
for the remaining eleven months according to the new graduated tax rates based
809
solely on the adjusted gross receipts earned during those eleven months. In
2003, the GA retroactively amended the statute to more clearly state how taxes
should be calculated when a riverboat implemented flexible scheduling for only
810
part of a year. The DOR recalculated Caesars’s tax liability using the amended
811
statute and issued a proposed assessment to Caesars. Caesars argued that the
amendment imposed the graduated tax rates on a riverboat for an entire year,
even when a riverboat had implemented flexible scheduling for only part of the
812 year. However, the Tax Court referred to the plain language of the statute and
to a companion non-code provision to explain its interpretation of the amended
813 statute. When a riverboat began or ended flexible scheduling in the middle of
a tax year, the appropriate graduated tax rate tier would be calculated using
799. Id.
800. 854 N.E.2d 957 (Ind. Tax Ct. 2006), trans. denied (Ind. Feb. 22, 2007).
801. Id. at 958-59.
802. Id.
803. Id. at 958.
804. Id. at 959-60.
805. Id. at 959.
806. Id. at 960 (quoting IND. CODE § 4-33-13-1.5 (2005)).
807. Id. at 958.
808. Id. at 960.
809. Id.
810. Id. at 960-61.
811. Id. at 958, 962.
812. Id. at 962.
813. Id. at 963-65.