Tax initiative case appeal unsettled, resort official says

CARSON CITY — Nevada Resort Association President Bill Bible said Friday that no decision has been made by the gaming industry on whether to appeal a court decision that allowed the state teachers union to begin circulating a petition to increase gaming taxes.

“We are reviewing the court decision and looking at all our options, including an appeal,” said Bible, who heads the organization that includes most major casinos.

Senior Supreme Court Justice Miriam Shearing, acting as a district judge, threw out lawsuits Thursday filed by the Resort Association and Las Vegas Sands Inc. in an effort to derail the Nevada State Education Association petition.

After that decision, NSEA President Lynn Warne said her organization would begin immediately collecting signature for its petition.

It needs to collect 58,836 valid signatures by May 20 to put the proposal before voters in November.

Under the petition, the gaming tax rate, now 6.75 percent, would be increased to 9.75 percent.

The 3 percentage point increased would bring in $250 million to $400 million a year.

The petition specifies the additional money would be used to increase pay of teachers and other school workers, except administrators, and on programs to improve student achievement.

Warne said the NSEA must start collecting signatures quickly because the deadline is six weeks away.

If the Supreme Court hears an appeal and decides to change even a single word in the petition, then any signatures collected would be void.

While Bible expects the industry will decide rather quickly to appeal the decision to the Supreme Court, he said it doesn’t have the same time constraints as the NSEA.

He pointed out that the Supreme Court twice has thrown out petitions where supporters had finished collecting signatures and seemingly qualified them for the ballot.

In 2002, justices threw out a teachers association petition to levy a corporate tax on gaming.

Then in 2006, they threw out one that would have limited government spending increases to the combined rate of population growth and inflation.

Warne said Thursday night that she expects the gaming industry will challenge the Shearing decision and do everything possible to prevent voters from deciding whether to increase gaming taxes.

She is convinced voters will back the proposal if it ever goes on the election ballot.

A poll by the Review-Journal in the fall found more than 2-to-1 support for the increase. Similar polls over the years also have shown overwhelming public support for gaming tax increases.

Even if voters did approve the tax increase in November, they also would have to approve it again in 2010 for the increase to go into effect.

The NSEA has proposed changing the constitution, a step that requires public approval at two consecutive general elections.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.