Bill to keep tax rebates from casinos killed

Lobbyists swiftly thwarted an effort by state senators to cancel tax rebates given to the gaming industry on Friday, according to reports by the Las Vegas Sun and the Reno Gazette-Journal.

At issue was a Nevada Supreme Court decision that stated Casinos did not have to pay tax on free meals for their employees or comped meals for guests, which led to casinos filing requests for refunds that could reach over $100 million. The legislation introduced yesterday would have clarified the definition of a meal for tax purposes, preventing them from collecting a rebate.

When word got out about the bill, and its "unanimous" support, they descended on the offices capital, according to the Sun. Despite the visible presence of lobbyists, many lawmakers did not acknowledge any impact they might have had on the Republican majority's decision not to consider the bill and Governor Gibbon's public statement retracting his support for it.

Bill Bible, head of the Nevada Resort Association, denied doing any lobbying himself and said that the bill's death owed more to partisan bickering than industry action, according to the Sun.

"Quite frankly, I thought the bill would be approved and passed out," he told the Sun. "It appears to me it was bogged down in partisan wrangling at the tail end of the day."

However, one lawmaker - state Sen. Randolph Townsend (R-Reno) -- told the Gazette-Journal some of what was happening behind the scenes:

Townsend said he didn't want the Legislature to meddle in pending litigation. He acknowledged talking to gaming lobbyists throughout the day who were worried about the bill's potential cost.

"This was a major hit on them without dialogue or discussion," Townsend said. "It just came flying out of the other house without a hearing."