Former state official submits two petitions for room tax allocation

CARSON CITY -- Former state Treasurer Bob Seale filed two petitions Friday that would give voters an opportunity to decide whether to use money raised by room taxes to fund public education or pay for public safety improvements.

Seale said he filed the petitions with the secretary of state's office because they would pay for needed improvements without raising taxes, not because he wants to grab revenue now going to support the Las Vegas Convention and Visitors Authority.

"It doesn't take away any money that already exists, but only takes future increases," said Seale, a former assemblyman and state Republican Party chairman.

Under his plan, the convention authority would receive its current allocation of slightly more than $200 million per year, plus annual increases to cover inflation.

Any funds above that amount would be forwarded to the state's distributive school fund under one petition, or to pay for public safety improvements under the other.

The shift would only apply to room taxes in Clark County.

"I think in these economic times it doesn't make any sense to raise taxes when there is a way to do it that doesn't require them," Seale said.

To qualify for the November election ballot, Seale needs to secure 58,836 valid signatures for each petition by May 20.

Since the petitions would amend the state constitution, voters must approve them in November and again in 2010 before they could go into effect.

Convention authority spokesman Vince Alberta offered no comments on the petitions.

"We are aware they have been filed and reserve any comments until we review and analyze them," he said.

Seale said the petitions represent his thinking and not that of the Las Vegas Sands Corp., which owns The Venetian, Palazzo and the Sands Expo and Convention Center.

The company's executives long have objected to room taxes funding the convention authority, which competes with the gaming company for convention business.

Reports surfaced in May that the Sands was behind Gov. Jim Gibbons' plan before the Legislature that would have raised $2.5 billion to construct roads. That plan included taking more than $50 million a year in room taxes going to the convention authority.

Like Seale's proposal, the governor's plan would have allowed the convention authority to keep its current allocation and earmarked future increases to highway construction.

Convention authority representatives maintained that proposal would prevent them from paying the debt service on an existing $680 million loan to renovate the convention center.

Gibbons backed off from his initial plan and the convention authority eventually agreed to pay $20 million a year in room taxes as part of a $1 billion state road building plan. During the legislative debate on the room tax plan, state officials released reports that showed the amount of revenue available for highway construction could reach $200 million in 15 years.

Seale said his plan would have the same effect -- not much money would be available for a few years, but then revenues would increase dramatically as additional hotel rooms are opened in Las Vegas.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or (775) 687-3901.