Sandoval: No probe planned on tax lobby

Wednesday, Oct. 15, 2003 | 9:18 a.m.

CARSON CITY -- State officials are steering clear of the controversy involving possible undue lobbying pressures exerted during the tax debate in the 2003 Legislature.

"I know nothing about it," Gov. Kenny Guinn said Tuesday. "I read about it in the newspaper."

Attorney General Brian Sandoval said his office has not started an investigation and no formal complaint has been filed with his office.

The FBI has started asking questions about actions taken by at least one member of the gaming industry against a business that opposed a favored tax plan.

Harrah's and Harvey's, two major hotels at Lake Tahoe, canceled their contracts with Capital Beverage of Carson City, the supplier of Budweiser to the hotels, owned by Harrah's Entertainment Inc.

The gaming industry had backed a plan for a broad-based business tax. Kurt Brown, owner of Capital Beverage, had backed an alternative plan in which employers would be taxed based on their payroll.

Brown refused to support the casino plan and lost his casino contract to sell Budweiser, the biggest seller in the nation. He could not be reached for comment.

Gary Thompson, spokesman for Harrah's, said the hotels did not violate the law. He said the company sent Brown a letter in July, signed by Harrah's Chairman Phil Satre, that said the gaming company would not do business with a company that supported a plan that was detrimental to the firm.

The FBI last week questioned Sen. Mark Amodei, R-Carson City, who had included in his tax package a plan similar to the one supported by Brown. Amodei said he did not have any first-hand information if there was any illegal lobbying pressures exerted during the session.

Sandoval said his office usually acts if a complaint is filed, but nothing has been submitted in this case so far.

"Nobody has talked to us except the news media," Sandoval said.

Harrah's initially said it made a business decision that it received a better price from Coors and would realize more profits than if it kept dealing with Budweiser. But later it disclosed in the letter that it was canceling its business with Capital Beverage because of the disagreement over taxes.

Bob Crowell, lobbyist for Anheuser-Busch, which makes Budweiser, said no one from that company has been questioned by the FBI.

The FBI said no formal investigation has been started. FBI Special Agent Jim Stern said information is being reviewed to determine whether an investigation is warranted.