Initiative filed to raise casino taxes

CARSON CITY -- A group backed by a conservative businessman took aim at Nevada's highest-earning casinos Tuesday, filing an initiative to raise gambling taxes in a move that could intensify tax battles and test alliances going into next year's legislative session.

The measure filed by Nevadans for a Fair 9 Percent Gambling Revenue Tax is backed by conservative businessman Monte Miller. It would raise the top tier of gambling taxes to 9 percent for casinos that make more than $250,000 a month.

Existing rates are 6.75 percent on monthly revenues in excess of $134,000.

According to state regulators, it would affect about 170 of Nevada's 443 license holders.

Opposition from the casino industry came quickly.

"This initiative represents a 33 percent tax increase on the gaming industry, which would be reckless and irresponsible," Virginia Valentine, president of the Nevada Resort Association, said in an email. "We are currently reviewing the language. If this effort is indeed legitimate, we will oppose it vigorously."

Miller said the proposal to change state law would not apply to all casino activity, such as room rates, shows, shopping venues or restaurants, only revenue from wagers.

He cited an American Gaming Association report that said casinos in other states have higher tax rates, as much as 50 percent in Illinois and 26.5 percent in Louisiana. In Indiana, Miller said the tax rate ranges from 15 percent to 40 percent. In 2010, that state's 11 casinos paid nearly $875 million in gambling revenue taxes, more than the $835.4 million Nevada casinos paid in the same year.

Miller said his motive is fairness.

"Nevada's individuals and small businesses are overtaxed," Miller said. "By fairly taxing the billions of dollars that big casinos win from high-rolling gamblers, we can lower taxes and fees on individuals and small businesses who are struggling."

It's also a counterpunch to a union-backed tax initiative that has yet to be filed but is widely anticipated.

That measure, being organized by a coalition led by Nevada AFL-CIO Secretary-Treasurer Danny Thompson, is modeled after a failed margins tax on businesses that Democrats pushed in the 2011 session.