The Nevada Commission for the Reconstruction of the V&T Railway approved Mayor Marv Teixeira's proposal to trade train profits for sales tax revenue from Carson City today.
Teixeira said he plans to put the proposal on the November ballot as a non-binding advisory question.
Carson City would give the commission $10 million through a one-eight of a cent sales tax increase in exchange for 5 percent of the ticket sales if city supervisors approve the proposal following voters response to the advisory question.
Carson City has so far given $21 million in sales and room taxes to the project that is expected to cost $55 million and be finished in 2011.
Teixeira said the plan would not only recoup the money the city has invested but eventually begin to generate a significant profit.
The 18-mile tourist railroad is under construction and will run from Virginia City to Carson City when completed.
Teixeira said he expects that 200,000 riders a year will eventually ride the train, which will likely be run by a private operator.
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