Neal, Jones to debate gaming tax

Stacy J. Willis

Friday, Feb. 11, 2000 | 11:21 a.m.

State Sen. Joe Neal is honing his populist approach to pushing a gaming tax increase: He's scrawling a tax graph on the back of a paper restaurant menu.

His artwork shows the breakdown of state levies on casino gross revenues.

"They are not paying their share," Neal, D-North Las Vegas, says.

Across town, former Las Vegas Mayor Jan Laverty Jones is making headlines for landing a job as senior vice president of communications at Harrah's Entertainment Corp. -- a position in which she is charged with using her knowledge of politics and gaming to "set the record straight" about the industry.

Jones will be making her arguments against Neal's proposal to raise the tax on gross gaming revenues at large hotels by 5 percentage points when the two appear today on Las Vegas 1's "POV Vegas." The show will air on cable channel 39 at 4:30 p.m., 5:30 p.m. and 8 p.m.

Neal has been pushing to increase taxes on gaming revenues for years -- the Legislature rejected his attempt last year to add 2 percentage points to the tax.

But this time around, he's set the debate in a different forum by approaching the public with a petition initiative -- couching the debate in terms he hopes will circumvent the firm relationship between gaming and politicians.

Jones and Neal have butted heads before: Both made a bid for the 1998 Democratic gubernatorial nomination.

Jones won the nomination with 60 percent of the vote to Neal's 16 percent. Neal got no support from casinos; Jones was heavily backed by the industry.

Neal's tax proposal would increase the levy on gross revenues of casinos that take in more than $1 million a month from 6.25 percent to 11.25 percent.

He estimates the increase would raise $388 million a year in new taxes.

His plan would distribute the purse as follows: 45 percent to public schools, 38 percent to raising Nevada Highway Patrol salaries, 7 percent to economic development and 2 percent to fighting gambling addiction.

Neal needs 44,009 people -- including 10 percent of voters in 13 of the 17 Nevada counties -- to sign the petition by Nov. 14 for it to be sent to the Legislature in 2001. If the Legislature then rejects it, the measure would go to the ballot in 2002 for a decision by voters.

Jones has said that there are areas other than gaming the state can look to for tax increases.

"There are a number of huge companies in Nevada that pay no tax. Other companies aren't building $1 billion properties in Las Vegas," Jones told the Sun last week.

Her allies against the gaming tax say that the public-relations battle will be a challenge. The Nevada Resort Association plans to fight the initiative in rural counties with a strategy that includes trying to persuade rural newspapers to editorialize against the tax.

But few rural casinos make more than $1 million a month, making the small-town battle more difficult for gaming executives.

"Joe's fundamental theory is 'They can afford it,' and he doesn't care who 'they' are," said Alan Feldman, vice president of public affairs for Mirage Resorts Inc. "But the public is much more savvy than Joe thinks.

"The public is fully aware that what an 80 percent tax increase would do is bring this economy to a screeching halt and then drag it backward. It would shut us down," Feldman said.

"To suggest that gaming is not paying its fair share is just absurd. Gaming pays the lion's share (of taxes) in this state," Feldman said.

The state should revise its tax structure rather than fret over Neal's focus on gaming taxes, he said.

Senate Minority Leader Dina Titus, D-Las Vegas, spoke up for Neal's effort, which she suggested could end in a compromise.

"Gaming would like to take the approach of 'kill the messenger' and say Joe is not credible," Titus said. "But I don't think that's the case. He's been very smart about it and he's done his homework. "Now there's a lot of talk that the governor is going to get gaming (lobbyists) to come to the table and go for a 2 percent increase -- I think the governor is hoping to come up with something before the budget this spring.

"I think it's likely that gaming will come to the table with something. If Joe is a player, he'll be sitting at that table. If he's just a noise maker, he'll stay out."