Petition formed to oppose Neal gaming tax proposal

Thursday, May 11, 2000 | 10:29 a.m.

CARSON CITY -- A liquor dealer with ties to the gaming industry has formed a committee to gather more than 80,000 signatures opposing the initiative petition by Sen. Joe Neal, D-North Las Vegas, to raise the tax by 80 percent on big casinos.

Larry Ruvo, senior managing director of Southern Wine and Spirits of Nevada, said Wednesday the proposed higher tax would have a "devastating impact" on Nevada's economic foundation.

Ruvo is a partner with Reno lawyer Harvey Whittemore in land ownership at Lake Tahoe. Whittemore represents the Nevada Resort Association, the organization of casinos in Las Vegas.

A spokeswoman for Ruvo said that while he expects some financial help from the association, this is Ruvo's idea and that he's not a front for the resort group. Gail Tuzzolo, who operates a public relations business in Las Vegas, said there are already 200 volunteers who have agreed to help circulate the petition to be presented to the 2001 Legislature.

It is not a legal petition but merely an expression showing opposition to the Neal plan.

Ruvo and Whittemore were involved in a controversy during the 1999 Legislature over a bill they sought to allow them to build a pier at Lake Tahoe for their property. Other homeowners opposed the project and the controversy gained the nickname of "Piergate."

Neal could not be reached for immediate comment about Ruvo's petition.

The Neal plan would raise the tax on gross revenue from 6 1/4 percent to 11 1/4 percent and would hit the estimated 107 casinos that collect more than $1 million a month. It would raise about $338 million, with the revenue going to public schools, for tax breaks for car owners and pay increases for some state employee groups.

To qualify the petition to submit to the 2001 Legislature, Neal is required to gather 44,009 signatures by next November with 10 percent of the voters in 13 of the 17 counties signing the documents. Tuzzolo said the goal is to gather twice the signatures gained by Neal.

"Citizens from all over the state, some seriously impacted by the gaming tax increase and others simply concerned about overburdening our already shaky financial foundation, are just beginning to stand up and be counted against this radical proposal," Ruvo said.

"The more people come to know about it, the more they are motivated to work against it."

The petition also calls on the Legislature to develop an economic blueprint for the next 20 years for Nevada. It says "Nevada must take immediate steps to diversify the economy and attract new business to the state."

And he said government must increase its efficiency and provide greater accountability to the taxpayers of the state.

Ruvo wants the Legislature to establish a committee on the economic future to hold meetings in every county between February and May next year to allow taxpayers to offer ideas and plans for the economic future of the state.

This committee, he said, should then conduct a statewide summit on the economic future of Nevada.

Gov. Kenny Guinn, who also opposes the Neal initiative, held an economic summit last week in Las Vegas in which he outlined the tight financial situation the state would find itself in the years ahead. Guinn also opposes the Neal petition.