Las Vegas voters will decide new hotel room tax plan

The Las Vegas voters will have to decide next November if the Las Vegas hotels should have to take care of funding local schools though a new tax that will collect a total $260 million in the next two years. Clark County commissioners have approved a ballot question for the November 4^th election that will ask voters if the support or not a room tax of up to 3% on hotels. The straw ballot and proposed tax are part of a cooperative effort between three of the biggest casino operators in Las Vegas (Harrah's Entertainment, Wynn Las Vegas and Station Casinos) and an education employees' union.

Education supporters hope to get enough votes to persuade the governor and state lawmakers to support the measure. If voters and the governor approve the tax, it would go into effect July 1^st, 2009.

"We face tough times. But we cannot say we cannot change or improve, or that there is nothing we can do. This is a first step." said Terry Hickman, executive director of the Nevada State Education Association.

The income generated from the tax will initially compensate the estimated 14% cut in the school’s budget during the next two-year state budget cycle. After that, the money will be used for other educational and student’s programs and to cover teachers' salaries. If the voters approve the tax, the Las Vegas hotel owners would pay a maximum rate of 3%. The total taxes cannot go over 13% of the hotel revenue. That means that if a hotel pays 10%, it could be charged and extra 3% under this plan. If the hotel pays 11%, then no more than 2% could be added.

“It's vital to ensure teaching jobs aren't lost as the Clark County School District continues to grow. The room tax proposal would get money to schools three years sooner without the political turmoil” said John Jasonek, executive director of the Clark County Education Association.

Education activists and supporters recently pushed to make corrections to the state constitution as a way to increase taxes on gaming receipts; however, the project was not very well received by gaming companies and was dropped.