Kansas Star successfully appeals property tax assessment, casino owes $19 million
The Kansas Star Casino in Malvern will refund more than $19 million in property taxes after a state court recently ruled that the resort overpaid property taxes in 2014.
The casino is owned and operated by Boyd Gaming. It has appealed the estimated property valuation every year since 2014.
The Sumner County assessor estimated the Target casino was worth $225 million when it opened in 2012. After Boyd Gaming appealed, the valuation dropped to $175 million, but the Las Vegas-based casino operator said it was still too high.
Boyd claims the brick-and-mortar casino is worth about $75 million. The company has fought in court every year since 2014, arguing that its property taxes are too high due to overvaluation.
Tax dispute
The property tax dispute has been costly for the county and Malvern, which this year attempted to resolve the issue by settling with the casino. A settlement was reached this week that will result in the casino recouping more than $19 million, according to Sumner News Now and NBC Wichita.
The positive side is that we know what to expect. "Instead of waiting for a verdict, we know what we're going to pay," said Malvern City Manager Austin St. John. "We know our assessment will be correct over the next five years."
Kansas Star Casino features 1,300 slot machines, 43 table games and FanDuel Sportsbook. The on-site Hampton Inn & Suites hotel has 300 rooms. The resort includes three full-service restaurants and the 3,400-seat Kansas Star Arena.
Property Tax Statement
As part of its annual appeals of property tax liability, the Kansas Board of Tax Appeals regularly divides the values claimed by both parties. The state agency recently said the Kansas Star was worth about $102 million. However, because the casino paid the full amount of taxes based on the county's $175 million assessment, back taxes were required.
Sumner County commissioners and Malvern officials agreed to keep the casino's valuation at $102 million for 2023 and at least the next four years. The county and city will return about $19 million to Boyd Gaming over the next four years. Tax returns will be split between Sumner County, the City of Malvern and the District of Malvern.
In exchange for the resolution, Boyd agreed not to charge interest on the $19 million, which would significantly increase the return since it dates back seven years. Boyd also agreed to waive his right to appeal the $102 million valuation during the four-year deal.
Casino Tax
In addition to property taxes, the Kansas City Star Casino also pays sales and gaming taxes, which provide important tax revenue to state and local governments.
In October, the casino reported gross gaming revenue (GGR) of $12.8 million. The county charges 3 percent, totaling about $386,300. In October, the state received 22%, or $2.8 million.
The state's problem gambling fund is 2%, with casinos retaining 73%.
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Source: www.casino.org
