Editorial: Time to evaluate room tax

Sunday, Dec. 3, 2006 | 7:44 a.m.

Of the tax that tourists pay on the cost of their hotel rooms while staying in Clark County, the biggest share reverts to the Las Vegas Convention and Visitors Authority.

This fiscal year the LVCVA expects to receive approximately $213 million from the tax.

Two Las Vegas legislators, Senate Minority Leader Dina Titus and freshman Assemblyman Richard "Tick" Segerblom, both Democrats, say they will seek to revise the tax's distribution formula during the Legislature's 2007 session. Both question why the LVCVA cannot surrender a small portion of its share so that other entities - Segerblom suggests Clark County museums - might share in the revenue.

Although the idea of tinkering with the tax is guaranteed to be controversial, there is at least some support for it. Sen. Warren Hardy, R-Las Vegas, told Las Vegas Sun reporter Cy Ryan that, "It's time to have a discussion." Sen. Bob Coffin, D-Las Vegas, said if the economy continues to grow, and along with it the tax revenue for the LVCVA, that he would be "open to suggestions."

The base room tax of 9 percent in Clark County (downtown resorts charge 11 percent, with the extra 2 percent going to fund the Fremont Street Experience) supports not only the LVCVA, but also Clark County, local cities, the School District, road construction and transportation and the state Tourism Commission.

Of these beneficiaries, the LVCVA takes the largest share of the tax revenue by far - 46.5 percent.

The LVCVA's mission is to attract people from around the world to Clark County, whether through conventions or enticements to families and individuals. We believe the organization is vital to our economy. But we also believe that tax distribution formulas should not be set in stone. Periodic reviews to ensure that recipients' percentages are currently fair, or to discuss adding recipients, most definitely should take place. The last review of the room tax, in 1999, resulted in a slightly larger share for the School District.

We hope a majority of legislators approach this issue with an open mind.