Funds sought from car rentals

Erin Neff

Monday, June 2, 2003 | 11:15 a.m.

CARSON CITY -- The rental car tax should be increased in Clark County to generate millions of dollars for renovations at Cashman Field, the relocation of the culinary institute and construction of a performing arts center in downtown Las Vegas, Assemblywoman Chris Giunchigliani, D-Las Vegas, is arguing.

She persuaded the Ways and Means Committee to back a measure late Sunday that would do all of that. The bill, which was to be introduced today and faces an uncertain future given the ticking clock toward midnight's adjournment, would increase the car rental tax by 2 percent.

"I borrowed the idea from Raggio," Giunchigliani said in reference to a measure Senate Majority Leader Bill Raggio, R-Reno, brought to increase the Washoe County car rental tax to help fund construction of a minor league baseball stadium.

The bill will specify that 1.5 percent of the revenue generated from the rental tax increase be earmarked for refurbishment of Cashman Field near downtown Las Vegas and that another 0.5 percent be designated for construction of a performing arts center on the former Union Pacific Railroad yards adjacent to downtown.

The bill also calls for up to $3 million of the tax increase revenue to go to construction of a new Culinary Arts Training Center.

City officials are hopeful they can get the measure through both houses in the dying hours of the session, but admit it will be a difficult task.

The proposal faced an uphill battle today because it is not contained in Raggio's bill and because lawmakers will vote today for the largest tax increase in state history.

"We have 15 hours to work toward the success of passing both houses, but it is a toss-up on these last-minute bills," said Las Vegas Deputy City Manager Betsy Fretwell, the city's lobbyist who had been working to get the performing arts center included in the bill.

"If this bill passes, it will be fabulous for Southern Nevada because it addresses three major needs for this community."

The city has been working with performing arts officials for the past month for use of 5 acres of the old railroad land, part of the 61 acres the city owns.

"Funding is critical for this project, otherwise they will have to rely on charity contributions and other means," Fretwell said. " This (car rental tax funding) method would jump-start a performing arts center."

Fretwell said the changes to Cashman Field are necessary because Major League Baseball's standards for AAA stadiums have changed, requiring some renovation.

Also, she said, the Culinary Arts training facility, currently located downtown, wants to move next to the Nevada Partners site on Lake Mead Boulevard. The Culinary Union had pitched for an appropriation earlier in the session in Ways and Means, the committee on which Giunchigliani serves as vice chairwoman.

Raggio's bill for Washoe County, Senate Bill 497, passed the Assembly Government Affairs Committee on Sunday afternoon and was to come to the Assembly floor for a vote today.

Car rental agency representatives lobbied against SB497, saying the rental car tax increase in Washoe should not be increased to pay for something tourists, in large part, would not visit.

The rental car tax, with airport, county and sales taxes included, hovers around 28 percent in Clark County, car rental lobbyists said.

SB497 gives Washoe the authorization to increase the rental car tax, requiring more than just legislative approval before the measure takes effect. Raggio is seeking a 3 percent increase in the tax in Washoe.

Giunchigliani had originally wanted to amend her Las Vegas projects onto SB497, but Raggio asked her to generate a new bill to allow his to win legislative approval on its own merits.

"I decided that since everyone agreed that it was okay for Washoe, then I could pursue this revenue source, which won't impact our taxes, but (would) be great for Southern Nevada," Giunchigliani wrote in an e-mail response to a question on the bill.