Senate passes room tax increase


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The Senate Tuesday approved the initiative petition raising room taxes in Clark and Washoe County by a 16-5 vote.

The five no votes were from Republican members who said they were being boxed in by the constitutional requirements that don't allow any amendments to the plan authored by teachers' union and three casino corporations. They especially objected to the language mandating the money raised go first to teacher salaries.

Four other Republicans voted for the increase.

According to latest estimates, the 3 percent increase in the room tax will generate about $233 million over the biennium, all but about $3 million from Clark County. It doesn't apply to the other 15 counties in Nevada.

For the coming two years, that money will go to the General Fund. After that, the money will go to K-12 education.

The Assembly approved the plan last week so it now goes to Gov. Jim Gibbons who included the money raised by the tax increase in his proposed budget. But a spokesman said after the vote the governor will allow the petition to become law without his signature.

"He won't sign it based on principal," said Dan Burns. "He didn't support the tax hike and he doesn't support tax increases. He will not veto it because he will not stand in front of the will of the people."

Under the Nevada Constitution, the petition will become law after five days.