Judge Dismisses Nevada Casino Tax Hike Petitions
A radical series of proposals in Nevada which would more than triple taxes paid by most casinos on gambling revenue was thrown out Friday by a district judge in Carson City. Las Vegas attorney Kermitt Waters had introduced two petitions seeking to, among other things, raise the tax levied against casinos grossing more than $1 million monthly from the current 6.75% to an average of the maximum tax charged by other states with casinos, an amount that presently would be about 22%.
The Nevada Resort Association contested the petitions on the grounds that both contained false and misleading language, dealt with more than one issue (forbidden under state law) on a single ballot, and would relinguish Nevada's right to set its own tax rates to other states. Judge Bill Maddox agreed with the objections, and gave Waters one week to file for appeal. Waters is expected to pursue the case to the State Supreme Court.
Waters had proposed using the increased revenue to eliminate property taxes within Nevada; however, the judge found that the tax bump and the plan to ditch property tax were two separate issues, and as such needed to be on separate referendums. The same was true of specifics as to how new funds would be allocated.
Further, Maddox ruled that using the average of other states' tax plans would be an improper delegation of the legislature's power to set taxes, and the designation of funds to certain areas would infringe upon legislative responsibility over public spending.
Nevada needs to worry about killing the golden goose. Considering the massive revenues generated by the casino business directly, and the tourist industry which indirectly provides for an economic boost unrivaled by any other state, one would think the state would be thankful for its blessings, as opposed to trying to wring more pennies from the source.
