LEGISLATURE:

Nevada Assembly OKs bill to raise room tax

Bill passes 35-7, now goes to Senate

Published Tuesday, Feb. 24, 2009 | 1:05 p.m.

Updated Tuesday, Feb. 24, 2009 | 2:26 p.m.

See the vote of each lawmaker

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The Nevada Assembly passed the initiative petition that will raise the room tax, sending it to Senate for a possible showdown next week.

The bill passed 35 to 7, with all seven votes against coming from Republicans. But the caucus split.

Seven Republicans voted for the bill, signaling a more pragmatic approach than was indicated late last year, when the hard-line conservative caucus took hold during a special session.

The bill's passage would be a victory for Speaker Barbara Buckley, who helped negotiate the compact between the teacher's union and Station, Harrah's and Wynn last year.

It would also help fill the budget hole, though perhaps not as much as Gov. Jim Gibbons thought.

Gibbons projected the room tax increase of as much as 3 percent, to a maximum of 13 percent, would raise $292 million over the biennium. Legislative staff analysis said it would raise $232 million.

It now goes to the state Senate, where Senate Majority Leader Steven Horsford remains uncommitted.

"Until I hear the testimony and hear all sides on the public policy, I don't have a firm decision one way or the other right now," he said. Seven Republicans voted for the bill, saying that while it was not palatable to raise taxes right now, voters in Clark and Washoe counties approved of it in an advisory question and that the money was needed to fill the budget hole.

"Constituents expect us to be at the table, and to help make the tough decisions," said Assembly Minority Leader Heidi Gansert, R-Reno.

"We hope this is a bargaining chip when other taxes come up," said Assistant Minority Leader Lynn Stewart, R-Henderson.

Assemblyman Joe Hardy, R-Boulder City, noted that while he didn't like the bill, his constituents voted for it and Gibbons had included it in his budget.

"The governor, known for his thrifty approach to taxes -- and here’s where I smile -- put it in his budget," Hardy said. Democrats began circulating a list of how constituents voted on an advisory question according to precincts.

After the vote, Assembly Democrats noted that the district of Assemblyman Chad Christensen, R-Las Vegas, had voted 68 percent in favor. Christensen voted against the bill.

Tom Grady, R-Yerington, stood up and said he didn't support the bill, but noted that he was working to undo some of the governor's cuts.

"I don’t like this bill at all, but I'm facing rural health clinics, three in my district, are ready to close," Grady said. "If we don't close that hole, we lose clinics. I will reluctantly support it."

Assemblywoman Sheila Leslie, D-Reno, said she was glad that Republicans were making a connection between taxes and services. She noted the three weeks of painful testimony at Assembly Ways and Means Committee.

Assemblyman Ty Cobb, R-Reno, said he didn't support the bill because it would lead to fewer visits from visitors.

Discussion: 5 comments so far…

By goingbust

2/24/09 at 1:46 p.m.

Suggest removal

How can you write an article like this and not even note what the tax increase would be? It would take, at most, one sentence to add that important information to your article.
By jfnance32

2/24/09 at 2:16 p.m.

Suggest removal

This room tax will help the hotels and casinos big time.

Expect the returning business from visitors to really really pick up after the room tax increase goes into effect.

This will trigger a hiring boom in the casino business.
By daytrader44

2/25/09 at 8:02 a.m.

Suggest removal

As an out of state visitor who comes to Las Vegas a couple times a year . I am saddened to hear you want to suck more money out of the hands that feed you.
With the highest rate of taxes on rental cars in the nation , now an increase in room taxes .
I will think twice before coming back again .
There are many other places to spend my
money .
By cisea

2/25/09 at 10:23 a.m.

Suggest removal

going from what amount to what amount?
By deviousmind

2/26/09 at 11:54 a.m.

Suggest removal

The current hotel tax rate is 9% one of the lowest in the country. This would put us on par with other major travel destinations like Orlando who's Hotel Room tax is 12%. This increase would still be lower than other major convention cities. Chicago is 15.4% New Orleans is 13% San Francisco is 15.5%. Now if we would only tax mining and brothels.

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