Legislator will aim to raise tax on casino profits

Larry Henry

Tuesday, Dec. 9, 1997 | 11:23 a.m.

With news that other states are boosting casino taxes to nationally high levels, Sen. Joe Neal says he'll try again at the 1999 Legislature to raise the tax on Nevada casino profits.

"The quality of life is being affected in terms of growth," said Neal, D-North Las Vegas. "The casinos can afford to pay more."

Casino lobbyist Harvey Whittemore, who helped organize the American Gaming and Lodging Summit at the Las Vegas Hilton through Wednesday, said the casino industry will fight an increase in Nevada.

Whittemore argued that casinos in other states can afford to pay more because competition there is limited by law to a small number of properties.

"You'll see the industry (in Nevada) absolutely coordinated in stopping these sort of efforts," Whittemore said.

The Illinois Legislature recently raised the tax on gaming gross revenues from 20 percent to a sliding scale that tops out at a nation-leading 35 percent. In Detroit, three newly approved casinos will pay up to 24 percent.

Nevada casinos pay 6 1/4 percent on gaming gross revenues, the lowest rate in the nation.

"I think we can bump that rate up to 8 or 9 percent and they won't suffer at all," Neal said.

Senior activist Ken Mahal has said he'll circulate an initiative petition that would more than double Nevada's casino tax rate. Mahal said the petition is necessary because legislators are reluctant to raise taxes on casinos, which contribute heavily to campaigns.

Neal, who is expected to run for governor next year and would be considered a longshot, said he'll push for an increase in the gaming gross revenue tax whether he returns to the Senate or is elected governor.

Neal was re-elected in 1996 to a four-year Senate term and would serve during the 1999 session, which begins a year from next month, even if he runs for governor and is defeated.

He said on Monday that he'll make a formal announcement after Dec. 31, adding, "I don't see anything that's going to kick me out" of the governor's race.

Neal introduced a bill at the 1997 session that would have allowed counties to raise the gaming gross revenue rate by 2 percent, but the measure died on the Senate floor.

MGM Grand Inc. Chairman Terry Lanni, who spoke at the gaming summit Monday, said during an interview that Nevada's low tax rate stimulates the economy and creates jobs.

"Stable, predictable taxes are where you get (business) growth," said Lanni, who serves on the nine-member National Gambling Impact Study Commission.