MINUTES OF MEETING

      ASSEMBLY COMMITTEE ON TAXATION

 

      Sixty-seventh Session

      January 28, 1993

 

 

 

The Assembly Committee on Taxation was called to order by Chairman Robert E. Price at 2:04 p.m., Thursday, January 28, 1993, in Room 332 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda, Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

      Mr. Robert E. Price, Chairman

      Mrs. Myrna T. Williams, Vice Chairman

      Mr. Rick C. Bennett

      Mr. Peter G. Ernaut

      Mrs. Joan A. Lambert

      Mr. John W. Marvel

      Mr. Roy Neighbors

      Mr. John B. Regan

      Mr. Michael A. Schneider

      Mr. Larry L. Spitler

 

 

COMMITTEE MEMBERS ABSENT:

 

      Mr. Ken Haller (Excused)

 

GUEST LEGISLATORS PRESENT:

 

      None

 

STAFF MEMBERS PRESENT:

 

      Mr. David P. Pursell, Division of Assessment Standards, Department of Taxation, State of Nevada

 

      Mr. Ted Zuend, Deputy Fiscal Analyst, Legislative Counsel Bureau, State of Nevada

 

OTHERS PRESENT:

 

      See Exhibit B, attached

 

 

Chairman Price announced amendment of the agenda for February 2, 1993.  The committee will meet jointly with the Senate to receive an update of ("fair share bill") AB 104 of the Sixty-sixth session.  This would bring the new members up to date and refresh everyone's memory.

 

Chairman Price then assigned AB 136 and AB 137 to a sub-committee.  Mr. Neighbors was appointed Chairman of the sub-committee, Mr. Marvel and Mr. Regan were also assigned.

 

ASSEMBLY BILL 136 -     Revises provisions governing assessment of agricultural and open space land for property taxation.

 

ASSEMBLY BILL 137 -     Makes various changes concerning assessment of property for taxation.

 

Chairman Price opened testimony on AB 1.

 

ASSEMBLY BILL 1 -Prohibits increase in assessed valuation of real or personal property of business when improvements are made to remove certain barriers for persons with disabilities.

 

Mr. John Marvel, Assembly District 34, spoke as sponsor of AB 1 from prepared testimony attached as Exhibit C. 

 

Mr. Marvel introduced Mrs. Carole Vilardo, Executive Director, Nevada Taxpayers Association, to the committee.  

 

Mrs. Vilardo suggested time frames be added to AB 1, to comply with the requirements of The Americans with Disabilities Act (ADA).  She will provide information relative to the ADA implementation dates to the committee.

 

Mr. Regan thanked Mrs. Vilardo for clearing up the confusion.

 

Mrs. Williams commended Mr. Marvel and Mrs. Vilardo on AB 1, stating she felt it was a fair proposal and needed to be addressed. 

 

Mr. Richard D. Franklin, Principal Appraiser Analyst, Office of Washoe County Assessor, spoke in support of the general concept of AB 1.  He was concerned, however, with when such an exemption might expire.  He stated it would be very difficult to keep track of a ten year sunset period on each exemption.  He felt it would be more feasible to pick a date ten years from 1995 and end all exemptions at once, regardless of the exact date the application was approved.

 

Mr. Franklin's second concern was with existing language on page 1, line 4, "A residence owned and occupied by a [handicapped] person with a disability".  He questioned whether the concept was to apply to family members who might be handicapped or just the "owner."  He suggested the language might be broadened to cover the family of either owner or occupant. 

 

David P. Pursell, Chief of the Division of Assessment Standards, Department of Taxation, State of Nevada, stated concern was with page 1, lines 9, 10 and 11, "A person who claims the benefit of this section shall file with the county assessor an affidavit setting forth the nature of the improvement, its cost and the date or dates of making."  Mr. Pursell noted county assessors use the Marshall Swift Manual in determining the cost of increase and those figures might not compare to actual costs on affidavits.

 

Mr. Franklin stated another concern of the assessors was whether they should reduce the valuation of businesses that do not accommodate the handicapped.  Currently, a square foot approach is used when they assess a business or a residence.  Once the area of the building is established, a quality class is assigned to arrive at the Marshall Swift valuation.  If a business added a ramp outside, then there would be some extra costs but no adjustment would currently be made to allow for interior equipment or space.

 

Mrs. Lambert asked Mr. Pursell if some of the application standards could be implemented through regulation.  Mr. Pursell felt it could be clarified through policy statements as long as the department knew the intent.

 

Mrs. Vilardo suggested the business application show the improvements made and the date those changes were made, without taking into consideration the dollar value.  Mrs. Vilardo stated she would come back to the committee with suggested language for valuation purposes.

 

Mr. Marvel asked if there would be anything wrong with putting in a ten year sunset period.  Mrs. Vilardo did not advise a sunset.

 

Mr. Regan questioned Mr. Franklin on how he would evaluate two new homes; one developed for the handicapped, and one which was not.  Mr. Franklin answered it was sometimes difficult to make a comparison, but what they had been doing was getting the plan checked at rehabilitation so compliance was assured before making the assessments. 

 

Mr. Regan acknowledged that would solve the problem for either an individual or a business.  Yet, it would be up to the homeowner or the business owner to seek the exemption by making application to the assessor's office. 

 

Mr. Neighbors asked if there were any problems with the date shown on page 2, line 2.

 

Mr. Zuend suggested to Mr. Chairman the bill be amended to reflect the exact dates in public law.

 

Mr. Chairman requested that Mr. Marvel and Mrs. Vilardo submit proposals for amendments. 

 

Mr. Chairman asked if there was anyone who would like to speak regarding AB 136 or AB 137.

 

Mr. Bill Bartlett, Churchill County Assessor, sponsor of AB 136 and AB 137, announced he would refer any testimony to the sub-committee.

 

Mr. Bartlett gave an overview of the Assessors Association to the committee.

 

Mr. Doug Busselman, Executive Vice President, Nevada Farm Bureau, stated he would refer his testimony to the subcommittee regarding AB 137.

 

Mr. Zuend distributed the Revenue Reference Manual, Exhibit D, which may be referenced in full at the Research Library.

 

Mr. Zuend had also provided each committee member with bill summaries of AB 1, AB 136 and AB 137, Exhibit E.  See Exhibit G, "What Went Wrong" attached.

 

Mr. Chairman passed to the committee a list of Taxation related BDR's compiled by the Legal Division, Exhibit F. 

 

Mr. Zuend explained the contents of the Revenue Reference Manual.

 

Mr. Chairman thanked Mr. Zuend for the manuals provided to the committee.

 

 

 

 

 

There being no further business to come before committee, the meeting was adjourned at 2:55 p.m.

 

      RESPECTFULLY SUBMITTED:

 

 

                             

      SANDI MACHADO

      Committee Secretary

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Assembly Committee on Taxation

January 28, 1993

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