ADVISORY QUESTION: Room tax hike wins support - News

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Oct. 31, 2008
Copyright © Las Vegas Review-Journal

ADVISORY QUESTION: Room tax hike wins support

Washoe, Clark county voters back measure

By SEAN WHALEY
REVIEW-JOURNAL CAPITAL BUREAU

CARSON CITY -- Voters in Clark and Washoe counties are supporting an advisory question that would raise the room tax to generate money for public education, a Review-Journal poll shows.

The poll of 535 likely voters in the two counties where the question is on the ballot support the measure 59 percent to 28 percent with 13 percent undecided.

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The measure has stronger support in Clark County, with 62 percent supporting it and 25 percent opposed, compared with 53 percent in favor in Washoe County and 35 percent opposed.

The poll has a margin of error of plus or minus 4 percentage points.

If the measure wins approval in the two counties on Tuesday, the Legislature is expected to move forward in 2009 with legislation to raise the room tax in the two most populous counties. The increase in Clark County would be to 13 percent, from the current 10 percent.

The room tax increase originally was projected to raise somewhere between $150 million to $185 million for the 2009-11 budget and would be used to offset budget cuts for public education.

But with the delays in opening new rooms, the lower prices being charged for rooms and the vacancy rates because of lower visitor volume, the revenue is now being estimated at $125 million a year.

If for some reason the increase does not win approval from voters, or from the Legislature and Gov. Jim Gibbons next year, the Nevada State Education Association has already turned in petitions to put the measure before voters statewide in 2010 for a binding vote.

Brad Coker, managing partner of Mason-Dixon Polling & Research Inc. of Washington, D.C., which conducted the telephone poll of likely voters, said it appears the measure will win favor from voters.

"The concept is popular," he said. "Tax the tourist, the guy coming in on the airplane from Dallas with all the money in his pocket. It's an easy vote. The tax won't affect too many Nevada residents."

The room tax proposal was announced in May as a compromise between the teachers and some members of the gaming industry. Teachers had been pushing for an increase in the gaming tax to fund education.

In exchange for support from some in the gaming community, most notably Wynn Resorts, Harrah's Entertainment and Station Casinos, teachers abandoned their gaming tax hike proposal.

But gaming industry support is not unanimous. Both the MGM Mirage and the Boyd Gaming Corp. have expressed opposition to the idea.

Alan Feldman, a spokesman for MGM Mirage, said Nevada's economic and revenue problems won't be solved by the room tax proposal.

"The teachers union may be happy that they have some money, but I'm not sure what we're going to say to the firefighters, the police officers, the prison guards or the workers on the roads," he said. "This makes it look simple, like it is all going to be taken care of by tourists."

The realities of Nevada's economy make it clear that the governor and Legislature must get a handle on spending in the upcoming session and not rely on tax increases to try to weather the downturn, Feldman said.

"We don't support any tax increases in this upcoming session," he said. "We have to hold the line on state spending. The state has got to go through the same kind of exercise as every single business, and every family, is going through in Nevada right now."

Lynn Warne, president of the teachers association, said voters she has talked to support the room tax increase as a modest way to help adequately fund public education.

"I'm feeling confident. I think we have a clear mandate for the Legislature to act favorably. The governor has said that if it is the will of the people, he will sign it into law."

Approval would require a two-thirds vote of the Legislature, the same number required to override a veto.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. darrin wrote on October 31, 2008 02:38 PM: Ya know, this has been tried before, and now they want to try it again? Don't take MY word for it. Try this from 2005. http://www.reviewjournal.com/lvrj_home/2005/Oct-21-Fri-2005/news/3936850.html NO MORE MONEY. darrin wrote on October 31, 2008 02:07 PM: Uuughhh... Everyone has their own little angle here. Casinos don't want to pay any more taxes off their profits. The teachers union wants more money for the teachers union. The state wants more money for the state. Improve education for the kids? Oh yeah, right, we'll get to that later, after two years or so! LL wrote on October 31, 2008 11:31 AM: Thats right. Drive away the tourist. What a bunch of stupid people. dandabbs wrote on October 31, 2008 11:09 AM: This tax was agreed upon by the casinos during the negations to eliminate competition by creating a smoking ban on everyone but themselves. They agreed not to oppose this. robert forbuss wrote on October 31, 2008 10:51 AM: Sean Your story on the room tax is off a tad. The tax goes from its current 9% to 12% I think the downtown area has its base at 10% and it would go up to 13% but only in downtown LAS VEGAS. 12% is way below New York, Los Angeles, San Francisco and most other cities in the USA. snow*flake wrote on October 31, 2008 07:59 AM: I voted yesterday to take advantage of early voting. I voted against the room tax. Charging the people who vacation here more money does not make sense. I registered my car yesterday. I couldn't beleive how much it was. I should have kept it registered in Washington. Cheaper registration. If other states can manage their revenues better, Washington and Oregon come to mind, then why can't Nevada? Nevada gives its residents nothing for the gouging they get. Yes, I know if I don't like it I can move back. The good thing is that in other ways the cost of living is less expensive. Property taxes in WAshington are at least twice what they are here. At least the taxes are put to good use in WAshington, though. Beatiful and well maintained freeways, nice parks, etc. Also, state health insurance. Sure, you have to get on a list and qualify, but if you have to get on the list, you probably qualify. The point is, Nevada doesn't seem to know what to do with their tax revenue when they get it. And running off tourists with higher taxes doesn't get it. If the state managed its revenues better then they wouldn't have to resort to killing the goose that lays the golden egg. Jim shoes wrote on October 31, 2008 06:42 AM: That's right, lets bite the hand that feeds us, The TOURIST. Tourist, please stay away from Las Vegas, we treat you bad and want nothing but your money too feed our stupidity. We could care less, all we want is your money and will gouge you as we go. C. Ramsford wrote on October 31, 2008 06:23 AM: Why does the RJ conduct and publish "so called" polls that always favors the views and endorsements of the paper? Next we will see an RJ polls that has McCain leading in the US. It's bull. School district doesn't need any more money. Look at the building that houses the little watched KLVX Channel 10 on Flamingo. THAT'S where tax dollars went. And now they want to drink booze at the opening but can't get permission. Gee, how great they can waste millions of our dollars but can't get approval to chug down booze. Something is wrong with that picture and it starts with that SCHOOL BOARD! scottywrangler wrote on October 31, 2008 04:22 AM: Raising taxes during a huge downturn in revenues has always worked in the past! NOT!