Teachers submit language for ballot question to county

Monday, June 23, 2008 | 5:19 p.m.

Should be on next commission agenda. County folks wouldn't release it for some reason and say tweaking is being done, but I have obtained what was submitted:

ROOM TAX ADVISORY QUESTION

This question is advisory only: Do you support the imposition of an additional room tax of not more than 3 percent to be used in the first 2 years after imposition to avoid large cuts in the funding of education and other state programs and to be used thereafter to increase the funding of K-12 Education, specifically to improve student achievement and for salaries of non-administrative educational personnel?

EXPLANATION

This ballot question will serve to advise the Nevada Legislature of whether the majority of the voting public in this County would support the imposition of a new room tax. If this question is passed, an additional tax would be imposed on revenue from the rental of transient lodging (commonly known as a “room tax”) anywhere within this County, including all cities and towns, on and after July 1, 2009. The amount of the additional tax imposed would vary depending on the sum of all the room taxes currently being imposed in each particular area, but would not exceed 3 percent in any area. If the sum of all current room taxes in a particular area is less than 13 percent, the amount of the additional room tax would be the difference between 13 percent and the sum of all current room taxes in that area, but not to exceed 3 percent. No additional room tax would be imposed in any area where the sum of all current room taxes is equal to or greater than 13 percent. The imposition of this additional room tax, if any, does not affect any current room taxes imposed in the county and does not limit the ability of a local government entity in the county to impose additional room taxes, if authorized by current law.

The proceeds of the tax would be directed to the State to offset the loss of tax revenue over the next two fiscal years from the downturn in the economy of this State, and after that time to increase the funding of K-12 Education, specifically to improve student achievement and for salaries of non-administrative educational personnel. Those proceeds would not be used to replace or supplant any other available funding for schools.

The question is purely advisory and does not place any legal requirement on the County Commission, any member of the County Commission, any officer of the county or the Nevada Legislature.

GENERAL FISCAL NOTE FOR ALL COUNTIES

The imposition of a new tax on the rental of transient lodging in the county would only affect those individuals that stay in transient lodging, such as hotels and motels. The average annual cost that is expected to be incurred by the affected taxpayer if the new tax is imposed would be approximately $3.51 per night per room, assuming a tax rate of 3 percent and an average room rate of $117.12. The financial impact on the taxpayer would depend on the current total room tax rate imposed in the location in the county where the rental of transient lodging occurred, as follows:

1. There would be no financial impact on individuals who stay in a location in the county where the current total room tax rate is equal to or greater than 13 percent.

2. In those locations in the county where the current total room tax rate is equal to or less than 10 percent, the room tax rate would increase by 3 percent. The cost of the rental of a room would increase by 3 percent of the price of the room, excluding any other taxes or fees imposed by a governmental entity. For example, if the price of the room were $100, then the 3 percent tax would increase the cost of the room by $3 per day the room is rented. A taxpayer who stays an average of two times per year with an average stay of three nights per visit in rooms subject to this additional 3 percent room tax with an average room rate of $100 would pay an additional $18 in room taxes in each year.

3. In those locations in the county where the current total room tax rate is greater than 10 percent, but less than 13 percent, the room tax rate would increase by the difference between the current total room tax rate and the 13 percent maximum rate. The cost of the rental of a room would increase by this percentage multiplied by the price of the room, excluding any other taxes or fees imposed by a governmental entity. For example, if the current total room tax rate were 11 percent, then the room tax would increase by 2 percent. If the price of the room were $100, then the 2 percent tax would increase the cost of the room by $2 per day the room is rented. A taxpayer who stays an average of two times per year with an average stay of three nights per visit in rooms subject to this additional 2 percent room tax with an average room rate of $100 would pay an additional $12 in room taxes in each year.

If approved during the 2009 Legislative Session, the new room tax not to exceed 3 percent would become effective July 1, 2009, and would remain in effect until the statute is repealed. Any tax revenue generated in the county from the imposition of an additional room tax would be transferred to the State to offset the potential loss of General Fund revenue in the 2009-11 biennium (July 1, 2009 through June 30, 2011) and would be dedicated to increase the funding of K-12 Education, specifically to improve student achievement and for salaries of non-administrative educational personnel beginning in the 2011-2013 biennium (July 1, 2011 through June 30, 2013) and every biennium thereafter for as long as the statute remains in effect.

NOTE TO VOTERS: {This table displays the current total room tax rates in effect in each county so that each county can provide its voters with the rates applicable in the county in which the voter resides.}

I have posted the table at right.