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Oct. 13, 2007
Copyright © Las Vegas Review-Journal

POSSIBLE INITIATIVE: Gaming tax hike backed

Voters support more moderate plan, poll finds

By ED VOGEL
© 2007 REVIEW-JOURNAL CAPITAL BUREAU
ON THE WEB
Complete poll information


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CARSON CITY -- By more than a 3-1 margin, likely Nevada voters support the Nevada State Education Association's proposal to increase the gaming tax by 3 percentage points and spend the proceeds on public school education, according to a poll commissioned by the Review-Journal.

But the poll also found only 39 percent of respondents favor another proposed gaming tax petition that might be circulated by Las Vegas lawyer Kermitt Waters.

His petition would increase the tax, now 6.75 percent, to 18.25 percent, which is about the average in states with gaming.

Fifty percent of people surveyed oppose that nearly 300 percent tax increase, while 11 percent are undecided.

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    • Unlike Waters' proposal, the education association petition would increase the tax by about 50 percent, to a rate of 9.75 percent.

    Seventy-six percent of those polled back the teachers' proposal; 22 percent oppose it and 2 percent are undecided.

    "The poll shows people support taxing the big, evil casinos to help little kids in schools," quipped pollster Brad Coker with Washington, D.C.-based Mason-Dixon Polling & Research, Inc.

    But Coker added the gaming industry has the funds to mount an effective campaign against the NSEA petition.

    Coker said the results could be far different a year from now.

    Coker also said that Waters' petition is "dead on arrival."

    "People want to increase the gaming tax, but they don't want to put the casinos out of business," Coker said.

    A total of 625 registered voters in Nevada were surveyed by telephone Tuesday through Thursday for Waters' petition. The results have a margin of error of plus or minus 4 percentage points.

    Pollsters did not begin surveying for the NSEA petition until Wednesday. In all, 406 people were polled. Those results have a margin of error of plus or minus 5 percentage points.

    Lynn Warne, NSEA president, was ecstatic about the support for her group's petition.

    "This is outstanding," Warne said. "We certainly have the support of the public. They want something done, and they are looking to gaming to help us do it."

    She said the teachers association has waited in vain for years for the Legislature to appropriate more money for education. Teachers still receive only 2 percent to 4 percent annual salary increases and Nevada ranks 49th in per capita funding of public education, according to Warne.

    Nevada Resort Association President Bill Bible does not consider the results "anti-gaming," but a reflection of the desire of citizens to improve public education.

    "There always is overwhelming support for increasing support for education," Bible said. "We as employers want an educated work force and, as parents, want our children to get the best education possible."

    But he noted pollsters did not tell respondents that the tax increase was almost 50 percent or ask whether they would support other types of tax increases to raise money for schools.

    Citizens will support increasing taxes for schools as long as they are the type of taxes they do not directly pay themselves, according to Bible.

    The gaming industry has been conducting an ad campaign to show it already pays about one-third of the revenue going to the public schools.

    Bible was not surprised by the opposition to Waters' proposal to nearly triple the gaming tax.

    "People see that number and can figure out in their heads quickly what it does," Bible said. "They are saying 'Wait a minute, that is just too much.' "

    Waters, however, was surprised the poll found more opposition than support for his petition.

    "I can't find anybody who is against it," he said.

    Mason-Dixon poll takers told respondents the 18.25 percent tax would produce about $800 million a year and that revenue would be used to pay property taxes for all single-family homeowners each year.

    Waters said his estimates are the tax would bring in $2 billion a year. He also wants revenue used to give teachers a $10,000 salary increase and to spend about $900 million a year to improve highways. Money also would be spent to cover Millennium Scholarship costs and improve the court system.

    If people polled had been told that, and apprised of the fact that the 18.25 percent is the national average, then Waters said the results would have been far different.

    The state Gaming Control Board issued a report earlier this year that showed combined net profits for all casinos in Nevada in 2006 were $2.1 billion, nearly the amount of money Waters wants to extract from the industry.

    Waters acknowledged he still is drawing up his petition and it will not be submitted for another two to three weeks.

    Before circulating the petition, Waters will conduct his own poll. If he finds people do not want the higher gaming taxes, then he said he will end his efforts. He estimated it would cost him $250,000 to $400,000 to fund a signature-gathering campaign.

    "If I think people don't want it, I won't do it," Waters said.

    The NSEA will begin circulating its petitions in another month.

    The association needs to gather 58,628 valid signatures on petitions by May 20.

    Then the proposal would be placed before voters in the November 2008 election. If approved by voters then and again in 2010, the higher tax would be put into effect in 2011.

    Although the NSEA initially estimated the 3 percentage point tax increase would bring in $250 million a year, the actual increase, according to state revenue reports, would be more than $400 million a year.

    The higher tax rate would apply to casinos with gaming revenues of more than $1 million per month.

    Under the provisions of the petition, 40 percent of the funds raised would be spent on salary increases, 40 percent would go to reduce class sizes and expand the length of the school year, and 20 percent would go toward teacher incentive pay and to compensate them for out-of-pocket expenses.

    Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or (775) 687-3901.



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    Phil wrote on October 13, 2007 07:30 PM: As a teacher, I am tired of reading these comments from people who nothing nothing about teaching the children of Las Vegas. Let me bring out some points:
    1. Nevada is near the bottom, if not at the bottom of all catagories that deal with education. For example, next to last in funding, last in students attending college. If you are a citizen here and think that this is acceptable, you seem more pathetic to me than you already are.
    2. As a citizen of Las Vegas for 10 years, I have seen the out with the old and in with the new as it benefits the casinos- we pay more for entainment and meals than we ever have. Gone are the $4.99 buffets and the $5.99 prime rib dinners. I figured you cheap bastards be upset with the casinos about that.
    3. The casinos are making more now than they ever have. Nongaming revenue from the shows, restaurants, and shopping is trumping gaming revenue for the first time. For their financial rewards casinos are paying "yesterday's taxes" and they are not making up for the expenses of today.
    Before you want to condemn teachers for not being able to show results, I will be the first to tell you that we have been set up to fail through a pitful tax structure; classes are overcrowded and there are not enough resources are available. Many of our kids are the children of casino workers (not executives) mind you that are content with becoming bus boys, housekeepers, porters, and valets. This should make the casinos happy- a plentiful workforce. I know you conservative tightwads are content with this, but with the ways things are going in the casinos today, you will never benefit from it.


    chris wrote on October 13, 2007 04:36 PM: You can tax casinos big time, but at the end the house always wins. It dosent matter weather your a local or tourist casinos will increase their bets on everything and make more money for themselfs and shareholders.


    douglas wrote on October 13, 2007 03:24 PM: has anyone ever seen a position statement from either the gaming control board or the nevada resort association regarding the employment of illegals ?

    would a bolus of tax funds to the state's educational system, regardless of the source, compel gang bangers to:

    discard weapons

    cease drug sales

    stop drive by shootings

    forget car jackings

    return to school ?

    would added funds immediately cause parents to get their whelps to attend classes ? to do the homework ?

    perhaps if some added tax were to be sent directly to a state education fund, that same, exact total should be removed from the "school tax" portion of residential real estate taxes.

    rather, i'd wager that any such added tax would disappear into some educational administration costs and the school tax portion of residential real estate tax bills will stay the same or even go up.


    Mark wrote on October 13, 2007 01:37 PM: When you say"make the casinos pay", do you mean at gunpoint?


    Paul wrote on October 13, 2007 11:21 AM: Well seeing as casinos like to hire illegal aliens and illegal aliens put their kids in our schools, at the expense of our children. I say make the casinos pay for their greed and thirst for cheap labor.


    JD wrote on October 13, 2007 11:21 AM:

    This goose lays eggs, but they are not exactly golden. The people of the state have to put up with the undesirable elements that are attracted by a vice like gambling. For example, prostitution, dug use, fraud mongers, common criminals, high insurance rates, to name a few. We pay for services like police, fire, water, etc.

    Which casinos do you think will walk-away from their multi-billion dollar investments and the structure to support their operations?

    It is time for the casinos to anti-up for education.

    This is the price that should be paid to the people of the state, and it is a very low one at that. It is the lowest gambling tax in the United States, and far below the average tax.


    JD wrote on October 13, 2007 11:14 AM:

    You need to consider that this money will come primarily from tourists who live outside of the state of Nevada. It is a win-win for the people of Nevada as they will benefit from the new education dollars, but will have primarily of state people pay the for it.


    Mark wrote on October 13, 2007 11:10 AM: The greed for other people's money will kill the goose laying he golden eggs. Anyone who thinks the casinos will allowed themselves to be robbed is dreaming.


    Jason Voorhees wrote on October 13, 2007 11:04 AM:

    Looks like the 3% increase should be looking better and better to the gambling industry. After all, 18% is not necessarily outside the realm of possibilities.

    The people of the state can tax the gambling industry at any amount we choose.


    Jason Voorhees wrote on October 13, 2007 11:00 AM:

    Looks like the 3% increase should be looking better and better to the gambling industry. After all, 18% is not necessarily outside the realm of possibilities.

    The people of the state can tax the gambling industry at ant amount we choose.


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