Nevadans say let tourists pay

Nevada voters favor increasing the room tax, paid primarily by tourists, to increase funding to the state's public school system, a Review-Journal poll shows.

The idea of increasing the room tax from 10 percent to 13 percent to raise money for education was supported by 58 percent of those surveyed. Another 30 percent were opposed to it, and 12 percent were undecided.

"Voters always like the opportunity to tax somebody else, especially tourists," said Brad Coker, managing partner of Washington, D.C.-based Mason-Dixon Polling & Research Inc., the firm that conducted the poll. "They have no problem going along for the ride on this."

The odds of the measure passing are pretty good, given the strong level of support, he said.

Support, or at least neutrality, from the gaming industry would make the proposal even more popular, Coker said.

"I don't know if the casino industry will fight this tooth and nail," he said. "The room tax is something they will pass right through to their customers. Other proposals were on the table that would have damaged them a whole lot more."

The proposal to increase the room tax for public education, now expected to be limited to hikes in Washoe and Clark counties, was announced last month as a compromise by the Nevada State Education Association and some members of the gaming industry.

In exchange for support from some in the gaming community, most notably Wynn Resorts, Harrah's Entertainment and Station Casinos, teachers abandoned an initiative petition to raise the gaming tax instead.

The language of the advisory ballot question, expected to be in front of voters in the November general election, is still being drafted.

But gaming industry support is far from unanimous. The chief executives of MGM Mirage and Boyd Gaming Corp. have expressed opposition to the idea.

The room tax increase would raise between $150 million and $185 million for the 2009-2011 budget. It would be used to offset the need for budget cuts for public education if approved by voters and then the Legislature next year.

Coker's company surveyed 625 registered Nevada voters by telephone Monday through Wednesday, making sure the number of Republicans and Democrats surveyed reflect voter registrations.

The results have a margin of error of plus or minus 4 percentage points.

"I think those figures confirm what we know and have said all along, that education is a top priority of voters in Nevada," said Lynne Warne, president of the teachers association.

"They are looking for a fix to resolve the funding crisis for K-12 education."

Warne said the numbers show strong support for the idea, which will only grow when teachers begin to communicate with voters about the need for the increase.

Alan Feldman, a spokesman for MGM Mirage, said he thought support would be stronger for the measure.

"If anything, I'm surprised the opposition is so high," he said. "I almost expected more overwhelming support. It may indicate the public's belief we need to do something more broad-based."

Feldman said the company's concern with the teacher plan is the proposed tax does not raise enough money to address key needs in education, public safety and social services.

Looking only at the room tax is too narrow, he said.

New tax revenue should not be earmarked to one program or area of need, either, Feldman said.

MGM Mirage officials are meeting with business leaders, lawmakers and others to determine if another approach can be devised for the start of the legislative session in February, he said.

One potential target is the modified business tax, as long as protections for small business can be built in, Feldman said.

While new revenues are seen as part of the solution to the state's current economic woes, some budget cutting is also in order, he said.

"There will have to be some belt-tightening. We can't fill the gap 100 percent."

Contact Review-Journal Capital Bureau reporter Sean Whaley at swhaley @reviewjournal.com or 775-687-3900.