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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA Shelbyville racetrack and casino that is contesting the way Indiana interprets a state tax law will present its case in federal bankruptcy court.
A Delaware court where bankruptcy proceedings for Indiana Live are taking place has scheduled a hearing for Sept. 19.
The racino, as part of its bankruptcy proceedings, requested the court rule on whether the Indiana Department of Revenue is fairly interpreting a state law that dictates how much the business pays in taxes.
Indiana Live could save up to $15 million a year in taxes if its case prevails in federal bankruptcy court. (IBJ File Photo)Indiana Live says the state unfairly taxes it on money it doesn’t get to keep; the racino pays taxes on about 15 percent of revenue that is used mostly for horse-racing purse money and things such as care for older horses and assistance for workers.
If the court rules in Indiana Live’s favor, it could save Indiana Live as much as $15 million a year in taxes.
Hoosier Park, the state’s other racino, has joined in the case.
The Indiana Department of Revenue filed a response to Indiana Live’s request on Sept. 6. Among the state’s arguments is that the payments in question are investments that improve the caliber of the horse-racing industry, and thereby benefit the racinos.
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