Neal’s petition to raise casino tax fails

Thursday, Nov. 9, 2000 | 11:07 a.m.

CARSON CITY -- Sen. Joe Neal's initiative petition to raise the tax on major casinos by an estimated $388 million a year has failed.

With a week before the deadline, Neal, D-North Las Vegas, said Wednesday he won't get the necessary 44,009 signatures of registered voters to qualify the petition for presentation to the 2001 Legislature. It also would require 10 percent of the registered voters in 13 of the 17 counties to sign the petition.

"We won't make it," Neal said. "They (the casino industry) cut us out of getting signatures in the small counties that we needed." He did not give an estimate on how far he was short.

But the fight isn't over. Neal intends to introduce a bill in the next session to raise the tax.

The initiative petition would have increased the gross gaming tax from 6 1/4 percent to 11 1/4 percent on casinos that gross more than $1 million a month. There are more than 100 of these clubs, most of them in Las Vegas.

Bill Bible, president of the Nevada Resort Association, said he was not surprised the Neal petition failed. When it was presented to the voters, they realized how destructive it was, imposing an 80 percent tax increase on the casinos, he said.

He said workers and businessmen realized this would not be in the best interest of the state. People understood the contribution the industry makes and that other businesses are taxed at a far lesser rate, he said.

Bible predicted Neal's bill, if introduced in the Legislature, would meet the same fate. He said lawmakers will "reflect the same judgment as Nevadans" who rejected the petition.

Neal said an unidentified lawmaker has asked for a bill to raise the gaming tax by 1.75 percent to 8 percent of the gross. That would mean a 28 percent increase in taxes.

Neal said he will seek a lot higher than the 1.75 percent increase.

His volunteers, he said, did "very good" in Clark and Washoe counties gathering signatures. But in rural Nevada, he said he couldn't muster the volunteers. And he said he received reports that some of his volunteers who were circulating the petition were given $200 to quit and go home.

Bible said he doubted that occurred. He also said Neal made statements that some of the petition circulators in Las Vegas were intimidated. But Bible said he also questioned that allegation.

If Neal fails to get an "adequate" raise in the gaming tax through the Legislature, Neal said he would hire a professional firm to gather the signatures.

If Neal had been successful, the petition would have been presented to the 2001 Legislature that would have been required to act within 40 days. If the lawmakers rejected or changed the petition, it would have gone on the 2002 election ballot for the voters to decide.

The petition called for 45 percent of the new money to go to the public schools; 38 percent to be used to reduce the motor vehicle tax in Nevada; 8 percent to increase salaries of the Nevada highway Patrol; 7 percent for economic diversification and 2 percent to finance gaming addiction programs.

The deadline for submitting the initiative petition is Nov. 14.

The initiative petition to ban prostitution in Nevada will also fall short. John Reese, who has launched several drives to close the legal houses of prostitution in rural Nevada, could not be reached for comment.

His wife, Susan, said he was visiting a sick sister in California. She said she "doubted" Reese has gathered the required signatures for the petition to qualify.

So far the initiative petition to impose a 4 percent net profits tax on business has qualified for the ballot. But businesses, including chambers of commerce, have filed suit and hearings are set for next week in Carson City on the issue.

Sen. Sandra Tiffany, D-Henderson, submitted her petition to break up the Clark County School District. County clerks are verifying the signatures but Tiffany said there are enough names to qualify the document for a place on the ballot. County clerks have until today to certify there are enough signatures on the ballot.