Neal seeks public support for casino tax hike

Monday, March 8, 1999 | 9:56 a.m.

The North Las Vegas Democrat said he already has made preparations to get the issue before voters because his plan is expected to die in the Senate Taxation Committee after a hearing Tuesday.

"Gaming controls everything," he said. "I just want them to pay their fair share. The people of this state should control gaming, not have gaming control them."

Under Neal's bill, the gross revenues tax paid by the state's biggest casinos would climb by 2 percent to 8.25 percent.

The current tax level is one of the lowest in the nation and hasn't been raised for a decade.

Neal, who has unsuccessfully fought to raise it for years, said he would seek a 3 percent tax increase if he's forced to take the issue to voters.

Neal must gather 44,009 signatures from at least 13 of Nevada's 17 counties to qualify the issue for the ballot. The proposal would go to voters in 2002 if legislators reject it in 2001.

Neal cited a recent University of Nevada, Reno poll that found 69 percent of those surveyed preferred an increase in casino taxes over any other tax.

"We need to change the rules of the game," Neal said. "The Legislature's the one who has to rise up and say something. If they don't, you take it to the people."

His proposal is opposed by the powerful Nevada Resort Association, which has no fewer than 16 registered lobbyists at the 1999 Legislature.

"We would hope Sen. Neal would reconsider his effort to put this in a referendum," said lobbyist Harvey Whittemore. "It should be handled in this way through elected representatives. This isn't the type of issue that should be subjected to a political campaign but rather through legislative debate."

Greg Ferraro, another lobbyist and executive with Las Vegas-based R&R Advertising, pledged an all-out fight against Neal's initiative.

"The tax burden is already being borne by this industry," he said. "It's likely that (the tax hike) could put some properties out of business ... We will demonstrate that before singling out one industry, we ought to contemplate the entire tax picture."

Ferenc Szony, president and chief executive officer of the Sands hotel-casino in Reno, said Neal's proposal comes at a bad time, especially in downtown Reno, where six casinos have closed over the last four years.

"Is this really the best time to put additional burdens on the industry?" he asked. "Higher taxes could stagnate the industry and that's what we don't need."