Room tax hike wins support

CARSON CITY -- Voters in Clark and Washoe counties are supporting an advisory question that would raise the room tax to generate money for public education, a Review-Journal poll shows.

The poll of 535 likely voters in the two counties where the question is on the ballot support the measure 59 percent to 28 percent with 13 percent undecided.

The measure has stronger support in Clark County, with 62 percent supporting it and 25 percent opposed, compared with 53 percent in favor in Washoe County and 35 percent opposed.

The poll has a margin of error of plus or minus 4 percentage points.

If the measure wins approval in the two counties on Tuesday, the Legislature is expected to move forward in 2009 with legislation to raise the room tax in the two most populous counties. The increase in Clark County would be to 13 percent, from the current 10 percent.

The room tax increase originally was projected to raise somewhere between $150 million to $185 million for the 2009-11 budget and would be used to offset budget cuts for public education.

But with the delays in opening new rooms, the lower prices being charged for rooms and the vacancy rates because of lower visitor volume, the revenue is now being estimated at $125 million a year.

If for some reason the increase does not win approval from voters, or from the Legislature and Gov. Jim Gibbons next year, the Nevada State Education Association has already turned in petitions to put the measure before voters statewide in 2010 for a binding vote.

Brad Coker, managing partner of Mason-Dixon Polling & Research Inc. of Washington, D.C., which conducted the telephone poll of likely voters, said it appears the measure will win favor from voters.

"The concept is popular," he said. "Tax the tourist, the guy coming in on the airplane from Dallas with all the money in his pocket. It's an easy vote. The tax won't affect too many Nevada residents."

The room tax proposal was announced in May as a compromise between the teachers and some members of the gaming industry. Teachers had been pushing for an increase in the gaming tax to fund education.

In exchange for support from some in the gaming community, most notably Wynn Resorts, Harrah's Entertainment and Station Casinos, teachers abandoned their gaming tax hike proposal.

But gaming industry support is not unanimous. Both the MGM Mirage and the Boyd Gaming Corp. have expressed opposition to the idea.

Alan Feldman, a spokesman for MGM Mirage, said Nevada's economic and revenue problems won't be solved by the room tax proposal.

"The teachers union may be happy that they have some money, but I'm not sure what we're going to say to the firefighters, the police officers, the prison guards or the workers on the roads," he said. "This makes it look simple, like it is all going to be taken care of by tourists."

The realities of Nevada's economy make it clear that the governor and Legislature must get a handle on spending in the upcoming session and not rely on tax increases to try to weather the downturn, Feldman said.

"We don't support any tax increases in this upcoming session," he said. "We have to hold the line on state spending. The state has got to go through the same kind of exercise as every single business, and every family, is going through in Nevada right now."

Lynn Warne, president of the teachers association, said voters she has talked to support the room tax increase as a modest way to help adequately fund public education.

"I'm feeling confident. I think we have a clear mandate for the Legislature to act favorably. The governor has said that if it is the will of the people, he will sign it into law."

Approval would require a two-thirds vote of the Legislature, the same number required to override a veto.