Nevada Considers More Bothels and Taxes

State Hit by Economic Slowdown Looking to Brothels for Revenue

Jan 31, 2009 Jon Pike

Nevada has been hit hard by the country's economic slowdown. One possible source of more income could come from increasing and taxing the number of brothels.

Some Nevada officials are seriously proposing expanding the legalization of prostitution in that state. Currently, Nevada is the only state in the United States that allows prostitution on a limited basis. Prostitution is only legal in state-licensed brothels and only in counties whose population is below 400,000. Prostitution is illegal in the state’s most populous counties such as Clark County, which is home to Las Vegas, and Washoe County, which is home to Reno. The mayors of Carson City (the state capital in which prostitution is illegal, even though there are legal brothels in its home county of Lyon) and Reno are opposed to legalized prostitution in their cities.

The state is currently facing a $1.8 billion deficit fueled, in part, by a depressed housing market and a decline in tourism, both of which the state has depended on for a lot of its economic growth. Nevada does not have a general business tax and has very low income personal income taxes. Republican Governor Jim Gibbons has submitted a state budget, which includes big cuts for higher education and pay cuts for public school teachers. That budget has been rejected by the state legislature.

The state’s legal brothels pay a $100 yearly business license to the state. The bulk of this business sector’s estimated $400 million economic impact on the state is in the form of tax revenue the brothels provide to local governments.

There is no legal male prostitution in the state. The women who work as independent contractors for the state’s legal brothels have to agree to a criminal background check and mandated health exams. Condom use is also a requirement in the state’s legal brothels.

More brothels and wider legalized prostitution may not be an economic panacea for the state, as some of the brothels are experiencing a slowdown in business.

Nevada Officials Who Favor Increased Prostitution for the State

Some of Las Vegas' prominent officials, including its mayor and a state senator are advocates of legalized prostitution in the state's largest city.

  • Las Vegas Mayor, Oscar Goldman, Jr.-“We kid ourselves and we’re very disingenuous if we pretend that there isn’t rampant prostitution now that is unsafe for which we get no tax revenue.”
  • State Senator Bob Coffin, Chair of the Senate Taxation Committee-"It's almost de facto legal. It's running unregulated,"

Partial List of Legal Nevada Brothels

  • Elko County-Carlin-Dovetail Ranch
  • Lander County-Battle Mountain-Donna’s Ranch
  • Lyon County-Mound House-Kit Kat Guest Ranch
  • Nye County-Crystal-Cherry Patch Ranch
  • County-Patrick-Wild Horse Ranch
  • White Pine County-Ely-Big 4 Ranch

The copyright of the article Nevada Considers More Bothels and Taxes in American Affairs is owned by Jon Pike. Permission to republish Nevada Considers More Bothels and Taxes in print or online must be granted by the author in writing.
Nevada's Bunny Ranch Brothel, wikimedia commons Nevada's Bunny Ranch Brothel
   
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