Nevada Gov. Jim Gibbons backs off casino tax plan
CARSON CITY ” Facing opposition from resorts, Gov. Jim Gibbons has backed off his plan to require casinos to pay gambling taxes more quickly on “markers,” or credit extended to players.
Taxes on markers currently are paid when the casino collects for the credit that has been extended to patrons.
The governor had estimated the state could secure an additional $31 million by requiring immediate payment of the 6.75 percent tax.
Gibbons’ spokesman Daniel Burns says the governor will not submit the marker proposal to legislators in light of the continued economic decline of the state’s gambling industry.
Nevada Resort Association President Bill Bible compared the marker plan to requiring individuals to pay taxes on their 2009 income on their 2008 tax forms.
Bible also says the proposal would have been counterproductive because casinos probably would have reduced their lending of credit and that could have led to a drop in total play.