Station leaving Vegas chamber

Liz Benston and Richard N. Velotta

Wednesday, June 4, 2003 | 11:09 a.m.

Station Casinos Inc. has pulled its membership from the Las Vegas Chamber of Commerce, claiming the chamber has refused to work with the gaming industry to come up with a tax plan to solve the state's budget crunch.

Nevada casinos support a broad-based business tax on gross receipts, a plan the chamber has criticized on the basis that it would hurt smaller or low-margin businesses.

The chamber has instead supported other tax proposals, such as a tax on services and a payroll tax that would tax businesses on the number of employees and their wages.

"We haven't felt like (the chamber has) been dealing in good faith to work on the tax situation," Station Casinos spokeswoman Lesley Pittman said. "It doesn't make sense to be a paying member of an organization that is actively working against our industry and our company on a topic that is important to the state of Nevada."

The company has supported a "unified business tax" that would give businesses the option to take a tax on gross receipts or to cap the tax at 1 percent of the cost of goods sold.

"Now they are talking about a payroll tax," Pittman said of the chamber. "That's a disincentive to good jobs and jobs that pay well."

Kara Kelley, president and chief executive officer of the chamber, said she regretted the decision Station officials reached, but hopes there would be an opportunity to talk to the company after the special session of the Legislature about reconsidering membership.

"It has been a contentious legislative session," Kelley said today while shuttling between Las Vegas and Carson City for the special session called by Gov. Kenny Guinn.

"It is regretful that Station Casinos' management had to make this decision and that the tax issue has become so problematic between our position and theirs. I hope once this all gets handled and settled, there will be an opportunity to address chamber membership with the company again."

Kelley said that while she did not want to underplay the importance of a company with as many employees as Station has, she said the chamber routinely gains 140 members, but loses 120 members every month.

"With 7,000 members, there's a natural ebb and flow of membership, but the reason given most often for dropping is financial," she said.

She said she has heard of no other chamber members canceling membership over the tax issue.

Other casino companies indicate they won't follow Station's lead.

MGM MIRAGE, which operates MGM Grand, The Mirage, New York-New York, Treasure Island, the Golden Nugget and has a half interest in the Monte Carlo in Las Vegas, has had no discussions on pulling out of the chamber.

"Everything we are doing is focused on trying to find a reasonable and fair solution to the quagmire that politicians have gotten us in," MGM MIRAGE spokesman Alan Feldman said.

Harrah's Entertainment Inc., which operates Harrah's on the Strip and The Rio hotel-casino, said today that it wouldn't leave the chamber over the tax issue.

Park Place Entertainment Corp., which owns Caesars Palace, Paris-Las Vegas, Bally's, the Flamingo and the Las Vegas Hilton in Las Vegas, isn't a member of the chamber.