Room tax passes

As my friends Anjeanette Damon (RGJ) and Jon Ralston (Las Vegas Sun) have already reported, the Senate passed the 3% room tax increase this afternoon.

The vote was 16-5, with the no votes all coming from Republicans (Amodei, Cegavske, Hardy, McGinness, and Washington). The vote finally came a day after five hours of an off and on hearing was held on Monday. It was assumed as late as last night that there were not enough votes to pass the petition.

Most of the opponents of the bill complained that taxation should not be done by initiative petition, but through the legislative process. The Chamber could not agree more.

We opposed this bill when it appeared on the ballot last November in the form of WC-6. We said then that we have elected officials for a reason. We delegate decision making authority on taxes, spending, and other matters to our councilmen, commissioners, and state legislators. We do not live in a direct democracy. We live in a republic. (I have been informed that since the initiative petition process is outline in the Nevada State Constitution, that we do, in fact, have a form of direct democracy. So, I stand corrected. But it doesn't mean I have to like it!)

Even the supporters of this bill admitted that this is not the process that they would have preferred, that their hands were tied and could not improve the language.

The proponent of this measure (the teachers union) has been telling the Legislature that Nevada needs new "broad-based" tax sources that are more stable than our current revenue. (In other words, they support taxing businesses more.)

I fail to see how an increase in the room tax (a percentage of the total room rate, not a fixed dollar amount) meets this definition, but why let good policy get in the way of cold, hard cash?

At least room rates are stable right now, right?

After this biennium, the money raised from this measure will go to teacher salaries and to improve student achievement. We should hold the teachers union to this. We better see improved student achievement.

Finally, the Chamber opposed this because there is no nexus to room tax and education. Our tourists will pay for the education of our children.

And did I mention that this law limits the room tax in Clark and Washoe counties to 13%? And that most of our hotels in Washoe are above 13% already? Meaning that Clark County tourists will pay 99% of the freight.

To: The Tourists of Clark County
From: The People in the Rest of Nevada

Thank you.