Home Subscribe Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

News
Jan. 05, 2008
Copyright © Las Vegas Review-Journal

Fight vowed in bid to up gaming taxes

By ED VOGEL
REVIEW-JOURNAL CAPITAL BUREAU

CARSON CITY -- A proposed 20.2 percent gaming tax is too much for Nevada casinos to accept without a fight.

The Nevada Resort Association filed legal challenges Friday against two petitions being circulated by Southern Nevada lawyer Kermitt Waters that would allow voters to decide whether to triple the state's current 6.75 percent gaming tax.

In the challenges, the gaming industry states that the petitions would turn the power to set gaming tax rates in Nevada over to politicians in other states, and that represents taxation without representation.

Under the petitions, the gaming tax rate in Nevada would be set at the average maximum rate charged for gaming in the 11 other states with casino gaming. Then, every year, the Nevada rate would be modified by the state treasurer to reflect changes in the average rate charged in those other states.

Most Popular Stories
  • SEX IN LIBRARY! SAY IT AIN'T SO
  • NORM: Dara Torres' ex still seems bitter
  • NORM: Curtain falls on flying body parts
  • NORM: Health put little damper on Carlin
  • EXCOMMUNICATION: Mormons expel LV man
  • SIERRA PACIFIC RESOURCES: As rates rise, exec pay soars
  • Officer in deadly crash held; tests reveal marijuana in blood
  • TAKEN FOR A BUS RIDE
  • NORM: Governor chums with club cronies
  • POLICE INVESTIGATION: Two men shot in the head



    • "This constitutes taxation without representation and is a fundamental revision of the Nevada Constitution -- which is impermissible through the initiative process," resort association lawyer Todd Bice said.

    Waters said he had not had time to review the legal briefs in detail, but Bice "must have gone to a different law school than me."

    He said people may use the initiative process to amend or revise the Nevada Constitution. He also said the gaming industry wants to kill his petitions so the state Legislature can continue to set gaming tax rates.

    "They own the Legislature," he said. "That's why we had to do these petitions."

    Waters said the Nevada gaming rate is the lowest in the country and legislators refuse to increase it enough to provide the services citizens need.

    His petitions would earmark the $2 billion a year raised by the tax increase for a variety of projects, including state highway construction, and teacher salary increases. One of them would remove property taxes from every owner-occupied home in Nevada.

    "I expected it," Waters said about the lawsuits. "They (gaming companies) have a stranglehold on this state that they don't want to give up. They are spoiled."

    The case will be assigned to a district judge in Carson City. A hearing will be conducted within a month.

    The Nevada Resort Association and Las Vegas Sands earlier challenged a Nevada State Education Association's petition to increase the gaming tax rate by 3 percentage points. A hearing on that challenge is scheduled for Jan. 18 before Senior Justice Miriam Shearing, who will be acting as a district judge.

    In legal briefs, Bice also states that Waters' petitions violate a state law that specifies petitions must deal with a single subject. That's the basis of the resort association's challenge to the teachers' petition.

    Bice said Waters' petitions would not only increase gaming taxes, they also would direct the state treasurer to set aside specific percentages of revenue for road construction, teacher salaries, property taxes, Millennium Scholarships and other programs.

    Waters said he filed both petitions to give voters a choice. If they approve the one to end their property taxes, then less money would be available for highway construction, teacher salaries and other programs.

    Even if Waters can fend off legal challenges, his petitions would not go before voters unless he collects 58,628 valid signatures by May 20.

    If he does, they would be placed on the November election ballot. Voters would have to approve them both in November and again in 2010 before the state constitution could be amended. The higher tax rates would begin in 2011.

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



    Leave Your Comment 6 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Tami wrote on January 07, 2008 09:55 AM: Jeez, just tax the Gaming Companies...how ridiculous when they are probably the major employer in the State of Nevada! Of course their taxes are lower than other states because there is more competition for gaming in Nevada. These casinos are struggling to make profits on a decreasing industry...Also, why would you want to put the biggest business in the state...out of business? Idiots!


    Daniel Strauss wrote on January 06, 2008 02:12 AM: They provide how many jobs now for Las Vegas residents? Why do you feel you shouldn't have to pay property taxes? Bash the corporation, is that right? What about this: If you kill the golden goose it will quit laying golden eggs. These resorts are owned by Stock Holders. You raise taxes to 20% (17+% increase) and they don't make as much money. Stocks fall, investors look elsewhere, etc... Simple economics.
    Why don't you complain to the Nevada Government for spending all the money they have to begin with? Why don't you tax investor home buyers (that sit vacant right now) more then locals living there trying to make a living? Why don't you find another job if this employer treats you so bad? 50K-75K dealing cards, cocktail waitress, etc... it's not a bad living. Although you could go pick crops in California, live in housing they provide and make your 10 bucks an hour. Hmmm...or like a lot of other major companies in the U.S.: Send the job overseas. Oh yea, Macau - that is already happening there too. If you tax these folks out of making money, they will look elsewhere. If Mexico were to put up some resorts like this with gambling, etc... along the Baha Peninsula - it is only another 30 minute flight and shorter drive from SOCAL. Be careful what you wish for Nevada - you would lose your Golden Goose. Or at least any new Geese!


    douglas wrote on January 05, 2008 12:15 PM: why on earth would any employee of any company continue to work for an employer who "treated them like dirt" ?

    if the "local" reputation is so bad, why are there 10 times the number of applications for each position at new joints ?

    how many applications will there be for echelon or city center ? could be that between them, there will be one million applications. that sure sounds out of sync with the "bad local reputation".

    so far, those who have used the "it's for the children" spiel for a raise in gaming tax, have an obvious, personal agenda. dishonesty no matter where encountered should be exposed.


    David wrote on January 05, 2008 11:49 AM: If the gaming corporations spent as much time and money taking care if its employees as it does on fighting gaming tax increases, they wouldn't have such a bad reputation with the locals. Treat your children like dirt and they denounce your very being. Treat your employees like dirt and they stab you in the back any chance they get.


    Joan wrote on January 05, 2008 11:15 AM: Where do we sign the petition?????


    Mark D wrote on January 05, 2008 07:34 AM: ""...and is a fundamental revision of the Nevada Constitution -- which is impermissible through the initiative process," resort association lawyer Todd Bice said.""
    Really?, If so, there are several issues that are in our constitution that are 'unconstitutional' as they were intiative based, like the marriage is between a man and a woman article or the abortion article or the government pension article.....