While there is no shortage of opposition to the proposal to fund public education in Nevada by nearly doubling the top-tier gaming tax, those whose opinion matters most seem to overwhelmingly support the idea.

The most recent poll by the Reno Gazette-Journal found 68 percent of respondents support the Nevada State Education Association’s initiative to raise the gaming tax for casinos with monthly revenue in excess of $1 million from 6.75 percent to 9.75 percent.

“That’s pretty consistent with our findings as well,” said Lynn Warne, president of the NSEA. “The Las Vegas Review-Journal did a poll that came in with over three-fourths in favor.”

The NSEA conducted its own poll before going forward with the ballot initiative, and learned immediately that this would be a popular proposal. Few people are opposed to the idea of spending more money teaching the children in Nevada, and few people want to pass a tax increase that they would have to pay themselves.
That kind of proposal, however, seems to be what a lot of people think the state needs most. A broad-based business tax, possibly backed with a personal income tax, would create a more stable revenue system for the state.

“You can’t rely on one industry for the solution. It has to be everybody,” said Danny Thompson, executive secretary-treasurer of the ALF-CIO in Nevada.

MGM Mirage Chairman and Chief Executive Officer Terry Lanni has called on Governor Jim Gibbons to drop his pledge not to increase taxes so the public education revenue shortfall can be addressed through a new tax system.

“The time came long ago for the establishment of a business tax paid by every large business that benefits from operating in this state,” Lanni said.

Bill Weidner, COO of the Las Vegas Sands Corp. and a member of the board of directors at the Nevada Policy Research Institute came up with a more radical proposal: disband the Las Vegas Convention and Visitors Authority.

Weidner points out that 200,000 square-feet of convention space at the Sands Expo runs $420,000, and at Mandalay Bay, the same space would cost about $360,000; at the Las Vegas Convention Center it costs $225,000.

“I propose we change the Las Vegas Convention and Visitors Authority to the Las Vegas Visitors Authority and provide this new entity with at least $100 million, increasing with inflation, to continue to promote visitation to Las Vegas. We then release the remaining $120 million of its $220 million operating budget by privatizing the Las Vegas Convention Center,” Weidner proposed.

“It is not acceptable to endorse tax increases just because you would shift the tax burden to someone else. Our state has legitimate challenges and we need intelligent solutions. We must be willing to challenge the status quo and conventional wisdom.”

It should be noted that the Las Vegas Sands Corp. is the only major Strip operator that is not a member of the LVCVA

Not surprisingly, the Las Vegas Convention and Visitors Authority does not seem to like the idea. Convention Authority President and CEO Rossi Ralenkotter said the current system brings more people to Las Vegas, giving operators the chance to lure them to their properties.

“Our model works at filling rooms,” he said. “It’s part of the partnership with the hotels.”

By Casino Connection Staff

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