Note 11 - Refund of Sales/Use Tax

12 Months Ended

Apr. 30, 2019

Notes to Financial Statements

Legal Matters and Contingencies [Text Block]

11. REFUND OF SALES/USE TAX:

On

December 29, 2017,

BHCMC, received a ruling from the Kansas Supreme Court in the Matter of the Appeal of BHCMC, LLC d/b/a Boot Hill Casino & Resort, concerning the request for refund for sales/use taxes paid for slot machines owned by the Kansas Lottery. The Kansas Department of Revenue appealed from a Board of Tax Appeals summary decision granting a compensating use tax refund to BHCMC. The Kansas Supreme Court addressed “whether such a tax can be imposed on Boot Hill (BHCMC) for electronic gaming machines it does not—and, under the law and its management agreement with Kansas Lottery, cannot—own”. The Court ruled that “Boot Hill did

not

exercise a right or power incident to ownership of personal property in order to be subject to a compensating use tax for that property.” Because BHCMC has

not

exercised such a power or right, the Court affirmed Board of Tax Appeals' refund decision and the ruling of the Kansas Court of Appeals panel decision. Management makes

no

assurances related to collection of, or the timeliness of, any actions realizing any direct monetary effects, if any, of the ruling. Therefore, the Company accounted for these sales tax refunds as other income when payment was received from the State of Kansas. The amount of refunds received from the State in

2019

amounted to

$1,995.

No

additional claim or refunds is anticipated.