Las Vegas Sun

March 29, 2024

County hesitant to press online travel site tax issue

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Chris Giunchigliani

Clark County commissioners have decided to hold off initiating lawsuits in an attempt to collect hotel room taxes from online travel companies.

Commissioner Chris Giunchigliani at Tuesday’s meeting proposed directing the District Attorney to gather bids from law firms on the potential suits, but other commissioners said they felt the court battles would be unsuccessful and potentially damaging.

The commission, however, did request the county staff to investigate the matter further and report back with potential legislation to clarify the tax issues.

At issue is the tax collected by Web sites that sell hotel rooms and collect the associated room tax. The tax on the portion of the price that goes to the hotel is paid to the county, but the tax on the mark-up that goes to the travel site is not.

Some other cities and counties have had success in court collecting taxes on the full price of the rooms, but some commissioners were worried that Clark County might not win an expensive legal battle and that going after travel companies could hurt the travel-centered economy here.

“My priority is to protect the gaming industry and, by extension, that visitor. That visitor is what is making Las Vegas get through this recessionary time,” Commissioner Larry Brown said.

Brown also said the money that would come to the county would be minimal and the law firms involved in the litigation would be the major beneficiaries of any lawsuits.

“I’m not sure it is in our best interest right now,” he said. “Although we are looking for revenue sources in this recessionary time, I think we may be stepping over dollars to get pennies.”

Commission Chairman Rory Reid said he thinks the current law is adequate and companies that sell rooms online benefit the county by getting visitors here and employing people in the area.

“I think the last thing we should do is suggest to anyone that there’s a problem here,” he said. “This relationship is good. It fills rooms; it puts people in beds in Vegas, so our people can work and so tax revenues are generated.”

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The commission passed a resolution supporting the designation of the Upper Las Vegas Wash as a national park in Tuesday’s meeting.

The wash has significant paleontological fossils from the Pleistocene Ice Age, according to scientists.

The exact area of the park is still to be determined, but the wash is in the northwest part of the Las Vegas Valley, north of the Las Vegas Beltway and east of U.S. 95.

The resolution passed by the board calls on Congress, the Department of the Interior and the National Park Service to protect the area.

Similar resolutions are scheduled to be considered by the Las Vegas and North Las Vegas city councils this week.

Nellis Air Force Base, which is nearby, and the Las Vegas Paiute Tribe support the park proposal.

Commissioners said the park would be a good way to diversify Las Vegas’ appeal as a tourist destination, and students will benefit from the park, which is located near a proposed north UNLV campus.

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Rory Reid

Sun Archives

McCarran International Airport isn’t much closer to getting a lounge for active-duty members of the military, despite the support of commissioners.

The airport is one of the largest in the nation without a military lounge, and veterans have been trying to establish one for years.

In Tuesday’s discussion, Chairman Rory Reid said the board supports the idea of a lounge, but the supporters need to present solid capital and operating plans before the board can take any action.

Space at McCarran recently vacated by an airline is available, and supporters say the cost to convert the area would be low. But they have failed to get the proper nonprofit recognition needed to begin raising money and organizing volunteers for the project.

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