Neal’s gaming tax bill dies with zero support

Scott Reeder

Friday, April 9, 1999 | 11:22 a.m.

CARSON CITY -- A bill that caused considerable consternation among Nevada gamers only weeks ago died with a whimper Thursday.

Sen. Joe Neal, D-North Las Vegas, wanted to raise the gross gaming tax.

But the measure died Thursday in the Senate Taxation Committee. When Neal moved to pass the bill, not a single senator rose to second the motion.

"I don't really lobby for my bills beforehand," Neal said minutes before the vote. "All that I know for sure is that I have at least one vote in favor -- mine."

Neal, one of the gaming industry's most vocal critics, wanted to raise the gross gaming tax for larger casinos from 6 1/4 percent to 8 1/4 percent. He said this would have generated $113 million more per year in revenues to the state.

Harvey Whittemore, a lobbyist for the Nevada Resort Association, said Neal's legislation, Senate Bill 88, would have had a devastating impact on the state.

"I think the defeat of this bill speaks highly of the senators," he said. "They must have realized what impact raising the gaming tax would have had on our economy."

But Neal maintains that the gaming industry is costing Nevada taxpayers a great deal because it is attracting people to Clark County, which is placing additional stress on infrastructure like schools, water lines and sewers.

Neal has said Nevada taxes its casinos lower than any other state that has legal gambling.

But gaming officials say such comparisons are deceptive because all other states with legalized gambling either restrict the number of gaming licenses they issue or geographically limit where casinos can operate. So operations in those states face less competition.

Neal has said if the Legislature failed to endorse his bill, he would launch an initiative petition to ask voters to approve the gaming-tax increase.

This would be an unfair approach to taxes, said Carole Vilardo, president of the Nevada Taxpayers Association.

"It is unfair because a need for the additional revenue hasn't been shown," she said. "Also the argument has been made that we haven't raised the tax for quite awhile. That argument could be made about a lot of taxes. With that line of thinking, no taxpayer would be safe."