Casino Connection Nevada

Taxing Situation

On raising the gross gaming revenue tax

by Bill Bible

Over the past few months newspapers and leaders throughout the state have discussed a proposed initiative calling for a 44 percent increase in Nevada’s gross gaming tax to support primary and secondary education. The gaming and resort industries share many of the same concerns most are expressing. As employers we want an educated workforce; as parents we want to see good schools and well-paid teachers. But the resort industry feels the burden of funding education and union demands for increases in paying for schools should not be exclusively placed on one industry; especially an industry already responsible for contributing more than $1 billion a year, more than one-third of the total state budget, to Nevada public education.

Arbitrarily targeting gaming to raise tax dollars is extremely reckless and could very well damage the economic engine that drives Nevada and its ability to responsibly fund state programs.

 As I’ve stated in past columns, nearly 50 percent of Nevada’s budget is provided by gaming and tourism. It also employs more than 17 percent of the state’s workers. As many of you remember, after 9/11 the industry was faced with difficult decisions, which included layoffs. In turn, with the reduced tourism dollars coming to Nevada the state legislature was forced to develop a patchwork of taxes, which included an increase on the gaming tax to address the budgetary shortfall the lack of tourism and gaming related taxes provided.

This should have been a wake-up call for not only the legislature but for all Nevadans. Everyone in Nevada depends on the huge amounts of money our industry contributes to the state through taxes. Just this past month, Governor Gibbons called for budget cuts because gross gaming revenue was lower than expected, and, as a result, state tax revenue was below projections.

I think a recent Las Vegas Sun column said it best: “Relying on one industry for state funds is extremely irresponsible. Rejecting such a tax proposal is not a matter of being fair to the gaming industry; it is a matter of being responsible to ourselves.”

As president of the Nevada Resort Association, it is part of my job to not only protect the interests of the gaming companies but also look out for Nevada’s resort workers. There is no doubt that increasing the gaming tax will stall resort industry and general job growth, reduce resort industry health and employment benefits and give other gaming markets an unfair economic advantage over Nevada.

Nevada’s relatively low gaming tax rate has inspired one of the most impressive job growth and development economies in the history of the United States. It also has allowed Nevada’s gaming and resort employees to enjoy some of the best industry wages and benefits in the world. A gaming tax increase threatens that distinction. In turn, Nevada’s ability to reinvent itself has allowed Las Vegas to become one of the most successful tourism destinations in the world. Increasing the gaming tax will discourage future Las Vegas innovation.

A lower gaming tax provides incentive for increased investment not only in casinos but people as well.

It is important we all help inform co-workers, neighbors and public officials about how such initiatives will impact all of us. This is not only for the health of our industry but also to protect those who are unaware of just how important the resort industry is to all of us.

Depending even more on gaming to support all resident services is simply bad policy and will ultimately hurt all Nevadans in the end