Nevada state law only requires remittance of room/sales tax if actual MONEY changes hands.

Therefore, in Nevada, you are NOT required to pay tax if using RCs to pay for either your meal (on the spot at the time of dining) or your hotel room.

Again, I'm not saying you can use your RCs for tax. I'm saying you shouldn't be charged tax at all.

I ran into this situation this past weekend at Harrah's Las Vegas, where I stayed and paid RCs for it.

Unfortunately, this wasn't a simple process. I had to pay 1 night in advance on my credit card, and then instruct them upon checkout to credit it back to my card, and charge my RCs instead.

I was in a rush, so I forgot to ask the (relatively new and inexperienced) front desk employee if she charged my RCs for the tax. Turned out she did, which was a mistake.

I called Harrah's today, and dealt with two guest services reps who were 1000% clueless and were stumped by the situation. The first one kept giving me nonsensical answers, then abruptly put me on hold. I hung up on her, got a different rep, who I asked not to put me on hold without permission. She was also very confused, and kept begging to let her put me on hold to "go over the reservation" (lol), despite not understanding what I was even asking. I finally asked for a supervisor, who understood the problem well, told me I was correct, and sent an e-mail to get my RCs adjusted. (Hopefully this really happens.)

So if they try to charge you tax when you pay for your room with RCs in Nevada, tell them it's incorrect, and demand a manager until they do it right. It's better to do this at checkout time, rather than on the phone later.

I assume other states have similar laws, but I can't say for sure, as I only know Nevada well.

On a side note: Do not charge food to your room if you ultimately plan to pay with RCs. The tax WILL be charged, because the system doesn't know which way you want to ultimately pay, and getting it removed is extremely tough. Just pay with RCs on the spot at restaurants if that is your plan for how you want to pay.