Gambling industry to go far and wide to beat tax increase effort

Tuesday, Feb. 1, 2000 | 9:21 a.m.

NRA president Bill Bible says a key part of the effort will entail traveling to rural counties and trying to get newspapers there to come out against the initiative.

The proposal by Neal, D-North Las Vegas, would increase the tax on gross revenues of casinos that take in more than $1 million a month from 6.25 percent to 11.25 percent.

Bible expects using mail pieces to urge rural Nevadans not to sign the petition. The budget for the "don't sign it" effort and other details of the advertising effort aren't final.

To qualify the initiative for the Legislature in 2001, 10 percent of the voters in 13 of the 17 counties must sign the petition by Nov. 14.

If the petition qualifies, and the Legislature rejects it, it goes on the ballot in 2002 for a decision by the voters.

But if the casino industry can block the initiative from qualifying in five counties, that ends the process.

Bible contends the tax increase is irresponsible and not well thought out. He hopes the rural voters, who tend to be against taxes in general, will block the initiative.

Neal estimates the increase would raise $388 million a year in new taxes. Forty-five percent of the money would go to public schools, 38 percent toward reducing the motor vehicle privilege tax, 8 percent to raising Nevada Highway Patrol employee salaries, 7 percent to economic development and 2 percent to fighting gambling addiction.

Neal said the gaming industry's plan is "a good strategy on their part if they can pull it off, but we're going to be going to the rurals and asking them to sign on, and it takes a fewer number of votes to qualify."

Because few of the rural casinos make $1 million a month, Neal doesn't see how those operations will object to his petition.

Neal said he isn't planning on hiring people to collect signatures, "but we're not ruling it out. If in August and September we come up short, we might hire people to concentrate on those areas."