Nevada Teachers' Union Casino Tax Gets Legal Approval
A Nevada judge has found that a petition by the state's teachers' union to raise casino taxes is properly written and may proceed to the next step, collecting signatures. Judge Miriam Shearing rejected opponents' claims that the current proposal had the same flaws as a previous petition that Shearing had tossed out.
The Nevada State Education Association has filed to increase the state levy against casinos grossing more than $1 million monthly from 6.75% to 9.75%, a 44% jump. The extra income would be earmarked for teachers' salaries and school improvements.
Pollsters agree that if the petition reaches the ballot, it is likely to pass. Nevada is underfunded in basic services, and the governor was elected on a platform promising not to raise taxes on individuals.
The next step for the union is to collect 58,628 signatures by May 20th. If this deadline is met, the proposal would appear on the November ballot as a potential constitutional amendment. It would then need to pass both then and again in 2010 to reach constitutional status.
The Nevada Resort Association, which represents the casino industry, and Las Vegas Sands have jointly fought the petition, claiming the language is confusing and the proposal is not specific enough. That argument worked on the first attempt by the union, but Shearing, a former state Supremem Court judge, found that the changes made in the rewrite were enough to satisfy legal requirements.
Considering that most states have much higher gambling taxes, with some as high as 50% of revenue, Nevada casinos must admit they are relatively well off. Although they are not protected by exclusivity as other states do, the tax increase is minimal in the eyes of the public. This is especially so as, while most citizens have to suffer the effects of the troublesome world economy, multibillion dollar casino projects pop up almost monthly along the Las Vegas Strip.
It would probably be wise to for the gaming industry to accept this small increase, and use it as a buffer to defeat other proposals for much higher rate jumps.
