Peter M. Sarkos was quoted in "6 Tips for Shaving Down A
Hotel Tax Bill." The full article is available in the June 20,
2014 edition of Law360, but a synopsis is provided
below.
Hotels struggle to obtain fair tax assessments as a result of their
complicated revenue streams, so experts predict tax bills for
lodging businesses will rise as the lodging industry booms.
Fox Rothschild litigator, Peter M. Sarkos, who recently helped the
Borgata Hotel and Casino in Atlantic City, New Jersey chop down
years of tax bills, comments on this prediction: "As soon as
the client contacts you, your next phone call should be to retain
an expert. Then start the process of getting all the necessary
financials."
Acknowledging that New Jersey Tax Court cases can sit idly for
years at a time, Sarkos adds: "My attitude is you can't
call them enough. If you think there's an opportunity to
settle, then you can't call them enough."
"My experience has been that the preferred method is not to
drill down in the weeds when you're just negotiating a
settlement. Deal with things in the broader sense and try to reach
a number that the parties are happy with," says Sarkos.
In relation to the settlement flexibility, Sarkos also comments
that, "Swallowing the current tax bill in exchange for those
reductions can often be in a hotel's best interest. Another
option is to take your client's refund as a credit on taxes
moving forward, which also keeps the city or municipality from
having to pull out money right away."
Originally published by Law360.
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