April 13, 2005

CARSON CITY, Nev. (AP) - Amid some figurative nose-holding and literal blushing, Nevada lawmakers on Wednesday considered imposing the state's first tax on legal prostitution.

The tax proposal was sought by Nevada Brothel Association lobbyist George Flint, who asked lawmakers to give his industry the "privilege of participating" in the state's tax system.

Although brothels pay local government taxes and fees, the state has never levied a tax against the 28 bordellos that legally operate in 10 rural counties.

Aside from the honor of inclusion, Flint was blunt about the motivation for his request.

"Candidly, I think it will give us some added acceptability. I think it will probably become money the state will be able to use and appreciate," he said.

"I know there are some of you that have philosophical problems, and maybe moral problems (with prostitution). I hope you can look beyond that and see the overall good that can be accomplished."

Assemblywoman Sheila Leslie, D-Reno, says she falls into the "philosophical problems" category. She's also the bill's sponsor.

Leslie said she opposes prostitution, but believes that as long as it's legal the brothel owners should pay their share.

She pitched the proposal to an Assembly committee as a revision of a tax on live entertainment passed last session. Leslie said that bill inadvertently exempted brothels.

AB317 would put a 10 percent tax on food and drink served in bordellos and a $2-per-customer fee. Prostitutes are independent contractors, generally splitting their earnings with the house. They would not shoulder any additional tax burden.

The new bill would deliver about $3.2 million to the state over the next two years, Flint said.

The proposal's hearing was a subdued affair, compared with the previous lobbying efforts. At a 1991 hearing, Flint brought a former prostitute to appeal to lawmakers.

"We were the only industry that came out in support of the tax on services," he said Wednesday.

The brothels are again standing alone. With the state facing a surplus of more than $300 million, legislative debate has focused on rebating taxes, not raising them.

Republican Gov. Kenny Guinn has said he will veto any tax increase that lands on his desk. He has not said whether he considers Leslie's bill a tax increase or revision of last year's bill.

Lawmakers made quick work of hearing the bill, asking few questions and staying away from details.

"Let me say, any question I ask is out of total ignorance of the industry," Assemblyman Bob Seale, R-Henderson, said before giggling, blushing and asking about the industry's sales tax burden.

Commerce Chairwoman Barbara Buckley, D-Las Vegas, did not call for a vote on the bill.

"This is such a weighty issue. I'm going to let the members think about it," she said. "And no calling me Madame Chair, either."

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