Pennsylvania casino overpays taxes, state won’t return the money

A Pennsylvania court rules that Parx Casino isn’t entitled to any form of compensation

From 2009 to 2011, Parx Casino in Philadelphia, PA paid more than its fair share in taxes. Unfortunately, no one caught on for another three years. When the casino realized its mistake, it most likely got rid of a bean counter or two and then tried to plead its case to Pennsylvania authorities in order to try to recuperate the more than $1.12 million it had overpaid. Its efforts fell flat after a judge ruled this week that Parx doesn’t have a leg to stand on.

Parx had paid more than it was supposed to in slot machine gross gaming revenue taxes for reasons that aren’t exactly clear – maybe someone’s calculator had a virus, or someone forgot to carry the one or maybe dyslexia set in. Regardless of the reason, the casino, in 2014, asked nicely to have its money returned, but the state taxman refused. Parx felt obligated to take its case to court, but the outcome wasn’t what it had expected.

Judge Kevin Brobson decided yesterday that, irrelevant of the reason, Parx had waited too long to file its claim. In Pennsylvania, amended returns have to be filed within two years, but it took the casino two years and six months to figure out its mistake. Brobson explained, “This Court frequently reviews matters that require application of a statute to particular facts and circumstances. We did that in reviewing this matter initially. As reflected in the Court’s Memorandum Opinion, we sided with … Commonwealth’s position and held that Taxpayer’s petition for refund was untimely.”

Parx, which is owned by Greenwood Gaming and Entertainment, apparently doesn’t harbor any ill will against the state. It opened a sportsbook at the venue, at an expense of $10 million, and Greenwood also has plans to introduce a satellite casino and other operations, starting with a new casino in Shippensburg Township. That venue will cost the company $8.11 million.