Miller accused of sleight of hand on tax hikes in state

Tuesday, July 15, 1997 | 8:37 a.m.

That turned out to be the case for the state budget, but in a move that critics say is deceptive, Miller is set to sign legislation allowing counties to raise sales taxes a quarter-cent for growth needs.

He is also expected to sign a separate bill for school construction in Clark County that would boost room taxes, more than double the tax on real estate transactions and could prevent property taxes from rolling back to a lower rate.

"It's a sleight of hand," said Ken Mahal of the Nevada Seniors Coalition. "He's actually supporting an increase in the cost of living."

Miller argues that those taxes aren't being imposed at the state level.

"It allows the authorization for the decision making on growth issues to remain where it should, and that is with local governments," Miller said through a spokesman.

Eric Herzik, political science professor at the University of Nevada, Reno, says elected officials have become skilled at approving "hidden taxes" they later can say they had no hand in raising.

Mahal criticized the Legislature for approving bills to give casinos a $2.5 million annual tax break and to reduce the sales tax for wealthy art buyers. Lobbyists working for Mirage Resorts Chairman Steve Wynn pushed for passage of the art tax reduction. Wynn is planning to display masterpiece paintings at the Bellagio hotel-casino under construction on the Strip.

Miller is reviewing the casino tax and art tax measures, said press secretary Richard Urey. The governor has 10 days after the close of the session last Monday to sign bills.

Mahal said it's obscene for legislators to give casinos a tax break while approving sales and property tax plans. He said that indicates the influence that casino lobbyists wield at the Legislature.

"Casinos deserve representation," he said, "but they don't deserve to put their foot on our throat and shove us down in the mud where we can't breathe."