Casino industry avoids tax hike to support gaming board

By Cy Ryan

Wednesday, April 13, 2011 | 10:13 a.m.

CARSON CITY – In an initial legislative test, Nevada’s casinos escaped a tax increase that would bring in $28 million more a year.

The 2009 Legislature asked the state Gaming Control Board to make recommendation on fee increases to support the state’s general fund, but the Assembly Ways and Means Committee shied away Wednesday from passing those recommendations.

Assemblywoman Maggie Carlton, D-Las Vegas, said the extra $28 million from casinos would fully support the control board, which regulates the industry. She said this could lead to “possible conflicts down the road.”

Nevada’s control of gaming has a high reputation not only in the nation, but worldwide, Carlton said.

The recommendations from the Gaming Control Board called for fees on slot machines, independent gaming agents, poker tables and the cost for processing shipments of out-of state slot machines. Committee staff said many of the fees charged in Nevada were lower than in other states.

The fee increase wasn't recommended by Gov. Brian Sandoval.

Assemblyman Randy Kirner, R-Reno, said there was only one slot machine manufacturer in Nevada and imposing a tax on shipments out of state would create a disadvantage.

Kirner is retired from IGT, the major maker of slot machines in Nevada.

The committee agreed it might consider the added tax on gaming later.

Committee members debated over levying a $5 charge on a casino employee who changes locations. This would bring in $65,000 more a year to the state and is included in the budget of Gov. Brian Sandoval.

Employees now pay $75 for a registration card and the 2009 Legislature recommended it be raised $5 when a worker switches casinos. But the control board has yet to levy the $5 fee.

Carlton said employees already are paying $75 for a work card and this added fee “is pushing folks over the cliff.”

Assemblywoman April Mastroluca, D-Henderson, also expressed opposition.

But this $5 fee is already in the law and the governor’s budget includes the revenue. If the committee failed to approve it, it would leave a $120,000 hole in the budget.

On a split vote, the committee agreed to keep the $120,000 in the budget and the Gaming Control Board can go forward with plans to impose the $5.

The committee approved the governor’s recommendation to eliminate 18 Control Board positions, including four investigators and four auditors.

The elimination, according to the board, would delay audits of casinos and the collection of unpaid taxes. Carlton opposed the elimination and said it would “be ripe for mischief.” Others agreed and the committee said it would return to consider these agents if more money turns up.