Bill to undercut plan to raise sales tax for stadium on Strip delayed

CARSON CITY – The Senate Committee on Revenue cut short plans to consider and possibly vote on a measure that would compete on the ballot against a proposal to increase sales taxes for a stadium on the Las Vegas Strip.

The decision came after key players, including Dale Erquiaga, senior policy adviser to Gov. Brian Sandoval, were already in the legislative committee room for a work session on Senate Bill 495.

The bill is a legislatively proposed alternative to a ballot measure that will ask Nevada voters whether sales taxes along the Strip should increase to pay for a sports stadium on property owned by Caesars Entertainment, the company that owns Caesars Palace, Paris Las Vegas and many other resorts in Nevada and around the country.

Boyd Gaming, MGM Resorts International and other Las Vegas gambling companies oppose the idea, saying a stadium should be financed with private money.

The opposing casino companies are backing SB495, a competing measure that would require sales taxes within Nevada counties to be uniform, a requirement that would undercut Caesars’ plan.

Both houses of the Legislature voted overwhelmingly weeks ago to reject the Caesars proposal, resulting in matter going to the people for a vote.

The alternative, to appear on the ballot as a competing measure, also has bipartisan support.

It was heard in Senate Revenue with no action on March 31 before being scheduled on short notice for a work session and possible vote in the same committee Thursday afternoon.

But while the committee was handling other business Erquiaga suddenly left the room for the office of Senate Majority Leader Steven Horsford, D-Las Vegas, and was joined by Heidi Gansert, Sandoval’s chief of staff.

Although Horsford and Erquiaga had little to say about the topic, people familiar with the issue said Senate Majority Leader and the Republican governor’s staff disagreed over a technical matter about how the bill should proceed.

Sandoval’s team suggested a provision in the constitution requires the governor to be a participant with the Legislature in proposing such a measure.

Horsford’s interpretation is that the Legislature has the right to put forth the measure and Sandoval’s role is to sign or veto.

Sandoval’s team produced a letter outlining the governor’s take on the issue, but it wasn’t officially delivered to the committee.

After the meeting in Horsford’s office Sandoval officials were said to be working on a new draft that could satisfy everyone and allow the bill to proceed.

Sandoval and Horsford appear to be in agreement the measure should move forward and that a tax increase shouldn’t fund a sports stadium.

The bill is still expected to return for approval before the April 15 deadline for bills to clear committees.

“It is just some technical issues,” said Sen. Sheila Leslie, D-Reno, chairwoman of the Senate Revenue Committee. “It will be overcome.”