MINUTES OF MEETING
ASSEMBLY COMMITTEE ON TAXATION
Sixty-seventh Session
May 20, 1993
The Assembly Committee on Taxation was called to order by Chairman Robert E. Price at 1:30 p.m., Thursday, May 20, 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
Mr. Rick C. Bennett
Mr. Peter G. Ernaut
Mr. Ken L. Haller
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:
Mrs. Myrna T. Williams, Vice Chairman (Excused)
GUEST LEGISLATORS PRESENT:
None
STAFF MEMBERS PRESENT:
Mr. Ted Zuend, Deputy Fiscal Analyst, Legislative Counsel Bureau
OTHERS PRESENT:
None
Following roll call, Chairman Price opened the hearing on AB 567.
ASSEMBLY BILL 567 - Provides manner of assessing value of certain possessory interests for imposition of property taxes. (BDR 32-779)
Ted Zuend, Deputy Fiscal Analyst, Legislative Counsel Bureau, provided committee members with a Bill Explanation for AB 567 attached hereto marked Exhibit C.
Chairman Price indicated the committee had been requested to indefinitely postpone AB 567 because the subject matter was going to be rewritten and handled in another bill.
ASSEMBLYMAN MARVEL MOVED TO INDEFINITELY POSTPONE AB 567.
ASSEMBLYMAN LAMBERT SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.
Chairman Price opened testimony on SJR 21 of the sixty-sixth session.
SENATE JOINT RESOLUTION 21
OF THE 66TH SESSION -
Proposes to amend Nevada constitution to authorize reduction in tax on property of business or industry that locates its hazardous operations at site or sites designated by legislature. (BDR C-2161)
Ted Zuend, Deputy Fiscal Analyst, Legislative Counsel Bureau, provided committee members with a Bill Explanation for SJR 21 of the sixty-sixth session attached hereto marked Exhibit D.
There being no one present to testify on behalf of SJR 21 of the sixty-sixth session, Chairman Price disclosed the Assembly Taxation Committee had passed the bill last session. Discussion ensued between committee members.
ASSEMBLYMAN MARVEL MOVED DO PASS SJR 21 OF THE SIXTY-SIXTH SESSION.
ASSEMBLYMAN NEIGHBORS SECONDED THE MOTION.
THE MOTION PASSED UNANIMOUSLY BY THOSE PRESENT.
* * * * * * * * *
Mr. Regan asked if the subcommittee on the casino entertainment was ready to report back. Mr. Zuend responded Harlan Elges, Chief of Administration, State Gaming Control Board, was supposed to clarify some fiscal information to the subcommittee before the subcommittee would report. Chairman Price indicated the committee would not discuss the casino entertainment tax today and would wait for the report from Mr. Elges. Some discussion followed, but Chairman Price reiterated a report in full would be given upon the receipt of information from Mr. Elges.
Chairman Price asked for committee action on AJR 21.
ASSEMBLY JOINT RESOLUTION 21 -
Proposes to amend Nevada constitution to require two-thirds majority of each house of legislature to increase certain existing taxes or impose certain new taxes.
(BDR C-166)
ASSEMBLYMAN MARVEL MOVED DO PASS AJR 21.
ASSEMBLYMAN ERNAUT SECONDED THE MOTION.
THE MOTION CARRIED.
* * * * * * * * *
Chairman Price asked for committee action on AB 331.
ASSEMBLY BILL 331 - Requires annual prepayment of tax on insurance premiums. (BDR 57-1714)
ASSEMBLYMAN ERNAUT MOVED TO INDEFINITELY POSTPONE AB 331.
ASSEMBLYMAN NEIGHBORS SECONDED THE MOTION.
Chairman Price explained AB 331 was part of the Administration's budget. The committee discussed impact and duration of AB 331.
Mr. Spitler was concerned with AB 331 because the proponents of the bill could not explain what would happen in the next biennium. AB 331 created another "fiscal responsibility that was a vacuum."
Mr. Neighbors added AB 331 would be passed along to the consumer.
Mr. Bennett recalled the hearing on AB 331 and commented he did not think a case was made at the hearing where there was any precedence for AB 331. He agreed with Mr. Spitler about the problem remaining in the next budget span. It was just bad policy. Mr. Bennett would not support AB 331.
Mr. Ernaut echoed Mr. Bennett's sentiments. All AB 331 did was pass the cash flow problems of the state onto the insurance companies, which would in turn be passed onto the consumer. It was bad tax policy and bad budgetary policy and would leave a hole in the next biennium.
Mrs. Lambert agreed with everything previously said and reiterated AB 331 was poor public policy and bad budget policy. She questioned what the Taxation Committee would do during the next session. Would the Taxation Committee require prepayment of one of the sales taxes? When was passing the buck to the next session going to stop?
There being no further discussion,
THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.
* * * * * * * * *
Chairman Price asked if any member wanted to take any action on the Indian fuel tax bill. Mr. Ernaut alluded to the pictures presented at the hearing displaying the train running next to the school. He wanted to point out that Schurz sued Southern Pacific six years ago because the train ran so close to the school. Schurz was awarded $6 million, none of which went toward the school. Mrs. Lambert was told the money went to the individual property owners and not the tribe. Mr. Ernaut communicated the property owners were tribal members. Mr. Ernaut believed at least it would have shown some intent if the money would have been put back into the school to move it further away from the tracks.
Mr. Neighbors said he was working on a proposal with Carole Vilardo. Mr. Neighbors said the Indian fuel tax bill was extremely bad tax policy.
Chairman Price asked for action on AB 102.
ASSEMBLY BILL 102 - REVISES PROCEDURES FOR RECEIVING TAXES ASSESSED UPON REAL PROPERTY TAX ROLL.
(BDR 32-485)
Mr. Ernaut mentioned there were proposed amendments to AB 102. Following discussion of the amendments, Chairman Price stated he would check with Mr. Mark Aston and make sure the amendments were appropriate.
ASSEMBLYMAN MARVEL MOVED AMEND AND DO PASS AB 102.
ASSEMBLYMAN REGAN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY BY THOSE PRESENT.
There being no further business to come before committee, the meeting was adjourned at 1:57 p.m.
RESPECTFULLY SUBMITTED:
DIANNE LAIRD
Committee Secretary
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Assembly Committee on Taxation
Thursday, May 20, 1993
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