Penn Casino’s Indiana Income Upped by Taxes Paid to Other States

Penn Entertainment Inc. owes Indiana additional corporate income taxes because it must add tax payments it made to 10 other states back to its Indiana tax base, the state tax court ruled.

When calculating adjusted gross income, Indiana’s add-back provision requires Indiana businesses to add deductions allowed by federal law for taxes measured by income paid to other states. Gambling taxes Penn paid to 10 states that are measured based on gross receipts or revenue fall under this provision, Judge John G. Baker wrote for the Indiana Tax Court in an opinion issued Wednesday.

The Indiana Department of State Revenue ...