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Gaming
Tax: a "Cheap" Ride for Casinos?
"Gaming
Tax"
On March
9th the NCDA testified before the Senate Taxation Committee in
favor of SB88, raising the Gross Gaming Tax (GGT) to 8.25%, as
proposed by Sen. Joe Neal. At first glance it seems
conflicting that your Association would support a tax increase,
and thereby, bite the hand that feed us. It is our position,
however, that there is no conflict. Nevada's 6.25% GGT is so
outrageously low compared to gaming taxes paid by other States
that it is truly an embarrassment.
Some examples:
Colorado
18%
Louisiana
18.5%
Michigan
19.5%
Missouri
20%
Iowa 20%
Illinois
20%
Notwithstanding the argument that "Nevada is a much
more competitive gaming environment," the spread between our
6.25% and the high double-digit tax everywhere else is still
beyond reason.
The costs of growth, i.e. roads, water and sewage, police
and fire, to name a few, are being imposed on us by the demands of
the expanded population needed to support all those new resorts we
see popping up every day. The impact from the likes of Citibank
and Ocean Spray are negligible. The conclusion is inescapable:
gaming does not pay its fair share.
Since the March hearings, SB88 has been derailed. In an
angry response, Sen. Joe Neal has proposed a petition drive to
raise the tax rate into the double digits. We feel this is an
unreasonable position and oppose it. A double digit tax would be
counter-productive and would damage Nevada's competitive edge in
an increasingly tough marketplace.
It may be that
Neal is simply jockeying for a better negotiating position, but in
any case we reject any proposal above the original 8.25%. Indeed,
in light of the legislature's poor performance on this issue, it
is clear that Sen. Neal should undertake his petition drive with
the more realistic and achievable goal of an 8.25% GGT.
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