Wednesday, March 2, 2005 | 11 a.m.
State tourism leaders are gearing for a legislative fight against a bill they say will short-change the state of tax revenue that helps fund the state's tourism initiatives.
The Nevada Commission on Tourism on Tuesday received a report on the status of several pieces of legislation working their way through the Nevada Legislature in Carson City. One of those bills, Senate Bill 84, would exempt certain uses of time-share units from the state's 9 percent tax on hotel rooms.
The bill was introduced by the Committee on Government Affairs and was referred to the Assembly Government Affairs Committee after its introduction Friday. Tourism commissioners say the exemptions would result in a loss of revenue -- as much as $3 million a year, one commissioner said.
"This could erode the amount of dollars to the state by $2 million from Las Vegas alone," Commissioner Van Hefner said.
Hefner said time-share units no longer could be considered residential units when an owner trades his time and the unit is placed in a pool for rental.
"They're basically competing with hotels at that point," he said. "They should have to pay the room tax."
A representative of the time-share industry could not be reached for comment after Tuesday's meeting.
The Nevada Commission on Tourism is funded by three-eighths of 1 percent of the tax revenue generated by the room tax. The commission is seeking approval of an $18.1 million budget for the 2006 fiscal year and a $17.5 million budget for 2007.
The time-share legislation is the only measure currently under consideration that the commission feels it should oppose. Commissioners have agreed to support some other bills affecting the tourism industry and not opposing others.
The commission submitted a bill that was introduced as Assembly Bill 138 that revises the manner in which the legal maximum width of recreational vehicles is determined. Executive Director Bruce Bommarito explained that state law allows a maximum width of 102 inches for an RV -- but the way the law is written, the measurement includes awnings that are erected when a vehicle is parked.
The bill would exempt awnings from the calculation. A hearing is schedule on the bill Thursday.
Another bill the panel supports would give the commission discretion to allow or deny the use of data generated by the state through its marketing efforts. Commissioners said they wanted to maintain the privacy of people who made inquiries for state travel brochures through the state's Web site and telephone calls. The board said the database developed by the state should not be treated as a public document.
Commissioners also said they would not oppose the creation of a new state park in Esmeralda County about 35 miles north of Tonopah in an area known as Monte Cristo's Castle. They also would not oppose a plan to install information stations in rest areas marking the California Emigrant Trail, nor a proposal to re-establish a $5 million contribution to the restoration of the historic Virginia City and Truckee Railway.
In other business, the board agreed to a one-year contract extension on advertising and public relations, reviewed the agency's budget request and received an update on efforts to recruit nonstop air service to and from China.
After viewing the newest "Nevada Wide Open" television commercial produced by DRGM Advertising, the commission voted to extend the agency's contract, which is due to expire June 30. The board also extended its public relations contract with R&R Partners. The marketing and advertising budget for 2006 is $8.8 million with only $145,000 allocated for public relations.
Within the Commission on Tourism budget are requests added by Gov. Kenny Guinn -- requests the commission is reluctant to oppose because they came from the governor's office. Guinn asked the commission to transfer $465,000 to the state parks budget for the proposed new park and $75,000 to develop a bid to host the 2014 Winter Olympic Games in the Reno-Lake Tahoe area.
Commissioners were told there was no progress in securing nonstop flights between China and Nevada. Aviation officials authorized the expansion of flights from 52 to 249 a week. Last week, American Airlines and Continental Airlines were awarded new China routes, joining United and Northwest as U.S.-based carriers serving the Asian nation.
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