WC #6
Do you support the imposition of an additional hotel and motel room tax of not more than 3 percent to be used in the first 2 years after imposition to avoid large cuts in the funding of education and other state programs and to be used thereafter to increase the funding of K-12 Education, specifically to improve student achievement and for salaries of non-administrative educational personnel?
Explanation: This ballot question will serve to advise the Nevada Legislature of whether the majority of the voting public in this County would support the imposition of a new room tax. If this question is passed, an additional tax would be imposed on revenue from the rental of transient lodging (commonly known as a "room tax") anywhere within this County, including all cities and towns, on and after July 1, 2009. The amount of the additional tax imposed would vary depending on the sum of all the room taxes currently being imposed in each particular area, but would not exceed 3 percent in any area. If the sum of all current room taxes in a particular area is less than 13 percent, the amount of the additional room tax would be the difference between 13 percent and the sum of all current room taxes in that area, but not to exceed 3 percent. No additional room tax would be imposed in any area where the sum of all current room taxes is equal to or greater than 13 percent. The imposition of this additional room tax, if any, does not affect any current room taxes imposed in the county and does not limit the ability of a local government entity in the county to impose additional room taxes, if authorized by current law.
The proceeds of the tax would be directed to the State to offset the loss of tax revenue over the next two fiscal years from the downturn in the economy of this State, and after that time to increase the funding of K-12 Education, specifically to improve student achievement and for salaries of non-administrative educational personnel. Those proceeds would not be used to replace or supplant any other available funding for schools.
This question is purely advisory and does not place any legal requirement on the County Commission, any member of the County Commission, any officer of the county or the Nevada Legislature.
Argument "In Favor" of WC #6
Despite the need for quality schools, safe highways and other public services in Nevada, revenue shortfalls have recently required the Governor and the Legislature to cut more than $1 billion from the state budget. Nevada schools, which already receive less money than schools in most other states, will fall further behind. Our children deserve a chance to gain job and life skills that will ensure the capable workforce essential to our state's future. Unless we act now, the lack of money for schools and other essential public services will hurt our children, our families, our communities and our state.
This question gives you the opportunity to express your opinion on whether a new source of money, a room tax on the cost of staying in a hotel or other place of public lodging in Washoe County, should be created and used to provide money for education and other basic services. Based on the current combined rates of existing room taxes in various areas of the county, the proposed room tax would be imposed at the rate of 1 percent in the unincorporated areas of the county and in Reno outside downtown. The money from the room tax would be used in the first 2 years (2009-2011) to restore some of the money recently cut from the state budget. Thereafter, the money would be used to improve student achievement in our schools and to help pay for teachers, classroom aides and other school employees. Because room taxes are largely paid by tourists and other visitors to Reno/Tahoe, the proposed tax would have little or no impact on the average resident of Washoe County.
It is important to understand that this question is advisory only. It does not require the Governor or the Legislature to adopt the proposed tax or do anything else. But it allows you to express your opinion on whether education and other vital public services should be funded at a more adequate level with this new source of money. Please join us in voting YES on Question WC-6.
Rebuttal to Argument "In Favor" of WC #6
Business is slow and jobs are in danger. This is not the time to burden anyone - even outsiders - with additional taxes.
Nevada depends on tourism. To say that "the proposed tax would have little or no impact on the average resident of Washoe County" is naive. Our economy lives or dies by selling hotel nights. Visitors will not be endlessly forgiving of Nevada's tendency to add another tax for outsiders whenever we need something.
As Nevada's economy shrinks, its population boom is also curbed for now. That means a break from surging public school enrollment while government works on reorganizing the budget.
Question 6 suggests that Washoe County voters are relieved of responsibility for the consequences of this decision, because it's an advisory question. The "opinion" from this vote will be passed along to the legislature.
But a yes vote is more than your "opinion." A yes vote is your permission for the legislature to raise the room tax, and then spend the money at will, since there is no specific direction about how to use the money. A yes vote will hand Carson City a blank check to use money that should be controlled by Washoe County.
Vote NO.
Argument "In Opposition" to WC #6
The Legislature already has authority to raise room taxes and allocate the resulting money without this question. This question is designed to give the Legislature an excuse to implement a deal made this spring between the Teachers Union and some gaming interests.
This advisory question has many effects that aren't obvious or fair to taxpayers in Washoe County. Here are the most important:
First - Tourism is the largest economic engine in Nevada. Adding additional taxes to hotel room prices at a time when tourism is down is misguided. Hotels have reduced room rates to attract business, and this tax would undermine their marketing efforts. Slowing the hotel business will also cause further job loss in Nevada at a time when more of our residents are out of work than any time since 1994.
Second - This question is appearing only on the Washoe County and Clark County ballots. The additional revenue will come from just these two counties, but will be spent statewide. Washoe County hotel business will suffer the effect of the tax, but Washoe County will not decide where and how it's spent.
Third - According to this question, after the first two years the revenue is to be used to "... increase the funding of K-12 education...." This will be extremely difficult to track and enforce. Any future Legislature is free to spend the revenue without regard to what is promised here. Note that this question is "purely advisory," and "does not place any legal requirement" on lawmakers.
Fourth - This revenue is supposed to be used to improve student achievement and increase teacher salaries, but there is no explanation or definitions of "improvement in student achievement." Nor are there accountability provisions.
Although advisory questions that pass almost always become the basis for a statute there is no specific language to show what the real impact of voting "yes" will be.
Washoe County voters should protect this potential revenue source for the needs we have in the County and the local governments in the County. Just vote NO!
Rebuttal to Argument "In Opposition" to WC #6
Based on current room-tax rates, the proposed room tax would not be imposed at all in downtown Reno or in Sparks. In other areas of Washoe County, the tax would add 1 percent to the cost of a hotel or motel room. On a room costing $100 per night, that's a dollar. The opponents want you to believe that this dollar will discourage tourists from visiting visit Reno or North Lake Tahoe. We think that's wrong, and so do the leaders of the gaming industry who support this question.
It's also wrong to suggest that the proposed tax threatens "local governments" in Washoe County. On a per-student basis, the fact is that our school district and every other district and charter school in the state will receive the same amount of money from the room tax, even though most of the money will come from visitors to Las Vegas. Our community will be helped, not harmed, by the proposed tax.
This question is only advisory. It simply asks you for your opinion on the basic question: Do you believe that tourists should help support our state and our schools? If you do, please vote "Yes" on WC-6.
Description of Anticipated Financial Effect: The imposition of a new tax on the rental of transient lodging in the county would only affect those individuals that stay in transient lodging, such as hotels and motels. The average annual cost that is expected to be incurred by the affected taxpayer if the new tax is imposed would be approximately $3.51 per night per room, assuming a tax rate of 3 percent and an average room rate of $117.12. The financial impact on the taxpayer would depend on the current total room tax rate imposed in the location in the county where the rental of transient lodging occurred, as follows:
1. There would be no financial impact on the individuals who stay in a location in the county where the current total room tax rate is equal to or greater than 13 percent.
2. In those locations in the county where the current total room tax rate is equal to or less than 10 percent, the room tax rate would increase by 3 percent. The cost of the rental of a room would increase by 3 percent of the price of the room, excluding any other taxes or fees imposed by a governmental entity. For example, if the price of the room were $100, then the 3 percent tax would increase the cost of the room by $3 per day the room is rented. A taxpayer who stays an average of two times per year with an average stay of three nights per visit in rooms subject to the additional 3 percent room tax with an average room rate of $100 would pay an additional $18 in room taxes in each year.
3. In those locations in the county where the current total room tax rate is greater than 10 percent, but less than 13 percent, the room tax rate would increase by the difference between the current total room tax rate and the 13 percent maximum rate. The cost of the rental of a room would increase by this percentage multiplied by the price of the room, excluding any other taxes or fees imposed by a governmental entity. For example, if the current total room tax rate were 11 percent, the room tax would increase by 2 percent. If the price of the room were $100, then the 2 percent tax would increase the cost of the room by $2 per day the room is rented. A taxpayer who stays an average of two times per year with an average stay of three nights per visit in rooms subject to this additional 2 percent room tax with an average room rate of $100 would pay an additional $12 in room taxes in each year.
If approved during the 2009 Legislative Session, the new room tax not to exceed 3 percent would become effective July 1, 2009, and would remain in effect until the statute is repealed. Any tax revenue generated in the county from the imposition of an additional room tax would be transferred to the State to offset the potential loss of General Fund revenue in the 2009-11 biennium (July 1, 2009 through June 30, 2011) and would be dedicated to increase the funding of K-12 Education, specifically to improve student achievement and for salaries of non-administrative educational personnel beginning in the 2011-2013 biennium (July 1, 2011 through June 30, 2013) and every biennium thereafter for as long as the statue remains in effect.