This Isn't Right

From the Bloomberg:  Most people have probably heard the popular phrase, “the house always wins.”  Indeed, it’s often paired with the familiar and belated advice, “you should have quit while you were ahead.”  The phrase, to the uninformed, typically refers to the sentiment that, no matter how much money a gambler wins, in the end, the casino will come out on top.  As such, it’s no secret that casinos use tricks or incentives to entice people into their establishments.  Whether it’s the draw of a free adult beverage, a voucher for a buffet or a complementary ticket to a show, casinos are keenly aware that the expense of simply getting customers into their doors is ultimately well worth the reward....
Last week, the Nevada Supreme Court tackled the issue of the application of the state’s use tax on four airplanes purchased by Harrah’s, a casino entertainment company registered to do business in Nevada, and delivered outside of the state.  The airplanes’ function?  Transporting Harrah’s executives and customers to and from its establishments worldwide. 
Thus, if you like to gamble or if your bank account is large enough, Harrah’s (as well as many other casinos around the world) will provide you with travel arrangements to ensure that you spend (or lose?) your money at one of their establishments.
Specifically, the case involved four airplanes that were purchased by Harrah’s, two of which were delivered to Harrah’s in Portland, Oregon and the other two to Harrah’s in Little Rock, Arkansas.  After their purchase and delivery, according to the flight logs, the two planes that were delivered to Arkansas flew to Las Vegas on their first flights and the other two planes made their first flights to Arkansas and California. 
Harrah’s paid Nevada use tax on the purchases in the amount of $8.6 million and sought a refund, claiming it was entitled to a presumption of nontaxability, which the Nevada Department of Taxation failed to overcome.   No other sales or use taxes were paid to any other state on the purchase of the planes.Thus, Harrah’s prevailed and it will receive a refund to the tune of roughly $3.7 million.  As such, whether shrewdly or unintentionally, the casino managed to escape tax liability altogether on two of the airplane purchases, a detail which did not escape the court’s awareness.  Indeed, the court, in a footnote and perhaps recognizing that such a ruling may not sit well with some, provided justification for its conclusion.
Specifically, the court noted that “[w]e are aware that, as a result of our interpretation, Harrah’s will not have paid any sales or use tax on two of their aircraft.  Nevertheless . . . [the state] only imposes use tax on goods purchased for storage, use, or consumption in Nevada, not those purchased for use in interstate commerce.  Any expansion of Nevada’s use tax must come from the Legislature, not this court.”
In the end, whether Harrah’s really “won” is debatable, but the fact remains, the casino found a way to keep $3.7 million.  http://www.lasvegassun.com/blogs/elsewhere/2014/mar/28/sales-tax-slice-house-really-does-always-win---las/
So, Harrahs buys a couple of airplanes and they pay no sales tax?  Even as a low tax conservative, this isn't right and the Nevada legislators need to do something about this.
But then again, the Senators and Assembly members, for the most part, are bought and paid for by the casinos.