Restaurant pianists exempt from tax

Erin Neff

Friday, Sept. 5, 2003 | 11:14 a.m.

Restaurants wouldn't have to pipe in taped music to avoid a new tax under guidelines being considered by the state Gaming Control Board.

Control Board Chairman Dennis Neilander said he is hopeful attorneys for the board will approve regulations he has drafted in a letter that would provide an exemption from the new entertainment tax for establishments with musicians providing ambient or background music.

"We went and looked at the legislative intent and how the conduct of background music played in to other exemptions to the tax," Neilander said.

The 10 percent tax on live entertainment that took effect in July already had exemptions for strolling musicians and casual assemblies.

"If you're providing purely ambient music, then the tax should not be applicable and would not be under the letter I'm drafting," Neilander said.

If his draft is approved and the Gaming Control Board is authorized to interpret the tax law in that manner, the move could return piano players, guitar duos and other musicians that do not sing to a number of strip casino restaurants.

The Eiffel Tower Restaurant at Paris Las Vegas fired four pianists last month rather than have the restaurants' patrons subject to the tax.

Arthur and Linda Schroeck were both part-time pianists at the Eiffel Tower Restaurant who were let go because of the tax.

Arthur Schroeck said he hopes the whole thing "was just a misunderstanding of the law."

"We worked very hard to try to get the piano jobs back because for two of the players those jobs were their bread and butter," Schroeck said. "We were also worried about it becoming a rolling stone with musicians at other properties being fired."

The Schroecks and Michael Close wrote a letter to the Tax Commission in August after they were fired saying the expectation that the tax would be passed on to restaurant patrons cost them their jobs.

Today, Frank Leone, president of the Musicians Local 369, heralded Neilander's action as "great news" and said the move would protect musicians who perform at the Bellagio, Paris, Bally's, Caesars Palace and at downtown's Plaza.

"The real important thing here is when a restaurant wants to have background or ambient music for atmosphere, the live performer can still provide that," Leone said. "We don't want the state of Nevada forcing restaurants to hire tape recorders."

Neilander said he expected to receive legal counsel's input on the draft letter today. The guidance for those who provide ambient music contained in his chairman's letter will be posted on the agency's website: www.gaming.state.nv.us