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New tactic on casino tax

Posted At : January 21, 2008 03:31 PM | Posted By : D McKee
Related Categories: Election

A source in the Lege informs me that, now that the Teachers Union's initiative to raise the gaming tax has been drop-kicked whittled down by Justice Miriam Shearing, a new stratagem is afoot. (I'd link you to the appropriate R-J story about Justice Shearing's verdict but their Web site is FUBAR, as usual.) 

Sayeth the source:

"In order to work around the two-subject rule [they] are considering circulation [sic] two petitions, one proposing a lottery, not a tax (the voters will more readily support a lottery, and so will more members of the legislature), and another indicating where the lottery money will go. In the language of the second initiative is a proviso that all collected monies given to schools will go to teacher salaries and material above and beyond all others currently provided. This prevents a California style move that replaced other funds with the lottery. The casino lawyers will kick and scream, but there is no law anywhere saying that this type of petition cannot be done. And, if anyone pays attention to recent history, the California lottery has not affected their tribal casinos one iota."

So we're talking about a two-pronged approach: Vote in a lottery and, discretely, vote for how the lottery lucre would be spent. It's a clever move because now companies like MGM Mirage (most vocal opponent of an increased privilege tax) would have to shift their argument to something along the lines of, "Don't vote in a lottery! It would hurt us." That plays in Carson City, but among the electorate ... ? I dunno. You might say the union has employed the Phil Jackson precept that by yielding to your opponent's greatest strength, you render him powerless.

At the very least, a lottery would keep in Nevada all those dollars (a few of mine included) that are trickling across the border and into California's lottery pool. Yes, it's a regressive form of taxation but that's the only type of taxation for which Nevada politicians have any stomach.

Besides, Gov. Jim Gibbons can sign it without violating his "no new taxes" pledge (the lone plank of his campaign platform -- hey, it worked) because it's not explicitly a tax, just another form of gambling. Heck, if the casinos can find a way to get in on the action (such as providing lottery-ticket kiosks), everybody can declare victory. Smooth move, teachers.

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