Mashantucket Tribe defends sales tax at casino

Thursday, September 10, 2009  

The Mashantucket Pequot Tribal Nation is rejecting criticism of a sales tax being imposed at its casino.

In January, the tribe authorized a 1 percent tax on the sale of merchandise at Foxwoods Resort Casino and MGM Grand at Foxwoods. The tribal tax is imposed on top of the state's 6 percent tax.

The tribal tax went into effect on September 1, causing some confusion among consumers. That prompted Attorney General Richard Blumenthal to look into the issue.

Blumenthal did not make a legal determination on the tax but said the tribe hasn't been up front with the public. He said the tribe was "likely deceiving" consumers by not telling them what they are paying.

"The ongoing failure to clearly identify the source of the tax has already caused confusion to the public and will continue to mislead consumers, who believe that the entire amount collected is a state tax, not a tribal surcharge," Blumenthal wrote in a letter to the tribe, according to a press release.

Get the Story:
Blumenthal speaks out on Foxwoods tax (The Norwich Bulletin 9/10)
Blumenthal says tribe can't hide its sales tax (The New London Day 9/10)
Foxwoods deals its own sales tax (WTNH 9/9)