Neal to launch petition to hike tax on gaming

Tuesday, Jan. 25, 2000 | 11:29 a.m.

CARSON CITY -- Sen. Joe Neal, D-Las Vegas, a persistent critic of the clout he says the gaming industry exercises on politicians, was set today to file his initiative petition that proposes a 5 percent increase in the gross gaming tax for Nevada's large hotels.

After a press conference this morning at the West Las Vegas Library, Neal was to leave for another press conference in Sparks before filing his petition in Carson City at the office of Secretary of State Dean Heller.

Andy Barbano, an ally of Neal and the senator's spokesman on many issues, said Monday that Neal "has a good shot" at gathering the necessary signatures. In order to present the petition to the 2001 Legislature, he needs 44,009 signatures by Nov. 14. The goal, Barbano said, is to collect 66,000 signatures in case some are disqualified.

The petition calls for boosting the tax on gross winnings at major casinos from 6.25 percent to 11.25 percent. The additional state income would be shared with public schools, provide raises for some state workers and allow the state to reduce the motor vehicle privilege tax.

Meanwhile, controversy surrounds new rules for circulating the initiative petition. Barbano said regulations adopted by Heller's office put up roadblocks to petitions.

A ruling by the U.S. Supreme Court in a Colorado case said a person who circulates an initiative petition does not have to be a registered voter. That means, Barbano said, that anyone should be able to circulate petitions and sign the required "Affidavit of the Circulator," which affirms that the person collected the signatures and asked if each signer was a registered voter. Nothing else should be needed, he said.

But the Nevada Constitution requires a second "Affidavit of the Document Signer" that must be signed by a registered voter. Heller's new interpretation is that if the circulator is not a registered voter, a voter must be found to sign the second affidavit.

Heller said Monday he consulted with the attorney general's office and the Legislative Counsel Bureau to reconcile how Nevada handles initiative petitions in light of the the Colorado case.

He said Monday that document signers, in a departure from past rules, do not have to be present when other individuals sign and that there is no limit on the number of petitions that the document signer can attest are valid. That means a single registered voter can now vouch for a non-registered circulator's entire collection of petitions.

But Barbano contends that Heller, in requiring a document signer at all, is violating the intent of the U.S. Supreme Court decision.

"That is flamingly unconstitutional," Barbano said. "Nevada is making it more difficult."

To qualify an initiative petition, backers must gather the signatures of 44,009 registered voters, and 10 percent of the voters in 13 of the counties must sign up. To change the Constitution, the signatures must be presented by June 20. For a change in the law, the deadline is Nov. 14.

But not everyone has problems with the new regulations.

Assemblywoman Sandra Tiffany, R-Henderson, said Monday she has already qualified in one county on her petition to change the law to break up the Clark County School District. She said she has enough signatures in Esmeralda County and has gathered 800 so far in Clark County in less than two weeks.

Tiffany said the process is "still cumbersome" but that Heller's new interpretation will help.

Richard Ziser, chairman of the drive for a constitutional amendment to prohibit marriages of people of the same sex, said Heller's new interpretation won't make any difference in his group's plans. It intends to use registered voters to circulate the petitions.

His organization, Ziser said, doesn't have time to go to court because it must get its petitions signed by mid-June.

In Neal's initiative, the senator says the gaming industry has not been paying its fair share to support government services such as schools, water and sanitation projects, roads, police and fire protections.

His tax proposal would be assessed against only 107 casinos statewide and is expected to raise $388 million a year. He argues the casinos deduct the state tax from their federal income tax and that even at 11.25 percent, it will still be among the lowest tax levies in the nation.

If Neal is successful in getting the petition qualified, the Legislature would have 40 days to either pass or reject it. If lawmakers turn it down, it will go on the 2002 election ballot for the voters to decide. The Legislature could pass an alternative plan or put another option before the voters.