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Napa Valley Casino owners plead ‘not guilty’ in tax case
MICHAEL WATERSON Napa Valley Register | Wednesday, December 7, 2011
• A hearing in the city’s criminal case is scheduled for Jan. 24.
• No court date has been set for Napa Valley Casino’s civil complaint.
Napa Valley Casino owners entered a “not guilty” plea Tuesday in their two-pronged battle with the city of American Canyon over back taxes. In October the city filed a criminal complaint against the card room owners to collect $108,000 that officials say they owe.
Steven R. Disharoon of Wood, Smith, Henning & Berman LLP, representing Napa Valley Casino owners Brian and Von Altizer and their partner Keith Miller, told Napa Superior Court Judge Monique Langhorne-Johnson that his clients have filed a civil complaint challenging the legality of the card room admissions tax passed by the city’s voters last year.
Altizer and Miller contend that the admissions tax violates state gaming regulations and the state and federal constitution.
Last week Disharoon defended his clients at American Canyon City Hall when the city threatened to revoke the card room’s business license. That issue was resolved when the owners filed a new business license with information matching their state business filing.
After Tuesday’s court appearance, Disharoon reiterated that his clients are within their rights not to pay the tax.
“We entered a plea of ‘not guilty’ because we feel that there was no violation on our part because the underlying law is unlawful,” Disharoon said by telephone. “In the meantime the civil case is continuing as well.”
The card room owners have challenged the admissions tax — a $2 entrance fee — on the grounds it violates state gambling laws and the state and federal constitutions.
“Our clients maintain they will refuse to demand an unlawful entrance fee,” Disharoon said.
Disharoon said no court date has been set for the civil case.
Outside the courtroom, William Ross, attorney for the city of American Canyon, said he thought agreement was still possible.
“We expect progress toward a resolution of the criminal case,” Ross said. “We anticipate a written offer from the defendants.”
The measure passed by the voters said the admissions tax could be superseded by a development agreement, whereby the card room could expand and add a restaurant and lounge in exchange for property improvements and a tax on revenue.
Disharoon said his clients were caught in the middle between city and state statutes.
“If they were to demand a (admission) fee it would violate state law,” Disharoon said.
A hearing in the city’s criminal case is scheduled for Jan. 24.
No court date has been set for Napa Valley Casino’s civil complaint, according to Disharoon.