Gaming operators in Nevada were breathing easier last week when Carson City District Court Judge James Wilson ruled that a measure that would have raised gaming taxes in the state to 9.75 percent from the current 6.75 percent does not qualify for the November ballot. Wilson also rejected an effort to raise the sales tax in the state to 8.75 percent, which would have been one of the highest in the nation.
Both referendums were to be included on the ballot when the Clark County Education Association gathered enough ballots. Both gathered nearly 200,000 signatures, far above the 97,000 needed to be placed on the ballot. Worse for gaming, polls showed the public in favor of a gaming tax increase by almost 60 percent. The sales tax increase, however, was opposed by more than 50 percent of respondents.
Wilson’s rejection was technical, overturning a decision by state Attorney General Aaron Ford that the wording and number of signatures were enough to make the ballot. Secretary of State Barbara Cegavske had fought to keep them on the ballot despite language in the state constitution that made that questionable, and Wilson rejected her attempts.
The move saves the gaming industry millions of dollars that would have been spent on a campaign against the gaming tax increase.