Walters questions denial of tax exemption

Thursday, June 3, 1999 | 10:31 a.m.

CARSON CITY -- Professional gambler Billy Walters can't understand why the Legislature wouldn't give a property tax exemption to his and two other golf courses in Las Vegas that benefit local residents but granted a tax break to the $300 million art exhibit owned by Mirage Resorts Chairman Steve Wynn.

Based on the refusal of the Legislature, Walters said Wednesday he would ask the Las Vegas City Council to amend his contract so greens fees could be increased, probably by $7-$8 a round.

"When we negotiated with Las Vegas, it was predicated on being tax exempt," Walters said, referring to his lease of city land for the Desert Pines Golf Course, which last year paid $97,266 in property tax.

His contract with the city, Walters said, guarantees 51 percent of the tee times on an annual basis be allocated to Las Vegas residents. And they are charged 35 percent of what a tourist pays for greens fees and a cart.

Clark County Assessor Mark Schofield presented a bill to the Legislature that would grant tax exemptions for all four courses located on public property to be tax exempt. The lawmakers agreed only to restore a tax break for Angel Park on the basis it is located in a public park.

Angel Park pays fees, instead of taxes, to the city, which uses the money for park improvements.

"To exempt one and not the other three is a little mind boggling," Walters said.

The other two courses on public property are Las Vegas Municipal and Desert Rose.

"We charge less than the price (for greens fees) and we can't even get a nominal subsidy out of the state," Walters said. "But they gave a subsidy for other businesses that cater to nonlocals," he said. Asked to be specific, Walters mentioned the personal property and sales tax exemption on Wynn's art collection at the Bellagio.

Desert Rose paid $45,404 in property tax last year, Las Vegas Municipal put up $48,733 and Angel Park's tax bill was $230,543.

Angel Park held a tax exemption since it was built in 1987 but lost it two years ago. It had paid the city fees instead of the tax. It is owned by the Minneapolis-based OB Sports.

Bob Ostrowski, lobbyist for Angel Park, said it qualified for a tax exemption because it is in a public park and the others are not. In addition, the fees paid, instead of taxes, go to improve the park.

Ostrowski said Angel Park offers a 25 percent discount to residents, and a further reduction if they buy a $200 card. The card also allows for 10 free rounds on the par-3 course.

Ostrowski said that Walters needs to come to the 2001 Legislature to argue his case, and Walters said he intends to do so. Angel Park, Walters maintained, "is the only golf course that doesn't comply (with discounted rates) and they got the tax break and the other three didn't."

The average rate at Desert Pines for residents is $38, which includes a cart. The highest rate for nonresidents is $145 on weekends. But the rates vary according to the season.

The bill, as originally proposed, called for the tax exemption for all four courses, which would guarantee residents one-half discounted rates and 50 percent of the tee times. The Assembly killed the exemption for the three golf courses but left in the one for Angel Park. There is no provision in the law that Angel Park give a reduced fee.

The Senate accepted the Assembly version, and the bill is awaiting signature by Gov. Kenny Guinn.

On Sunday night, one day before the session closed, lobbyist Harvey Whittemore, representing the Walters Group, tried again to include the exemption in another bill that dealt with economic development tax rebates. The Legislative Counsel ruled the golf tax break could not be included in that bill because it was not on the same topic.