MINUTES OF THE

      SENATE COMMITTEE ON TAXATION

 

      Sixty-seventh Session

      January 26, 1993

 

 

 

The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 2:10 p.m., on Tuesday, January 26, 1993, in Room 224 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

Senator Dean A. Rhoads, Chairman

Senator Ann O'Connell, Vice Chairman

Senator Randolph J. Townsend

Senator Sue Lowden

Senator Bob Coffin

Senator Raymond C. Shaffer

Senator Ernest E. Adler

 

STAFF MEMBERS PRESENT:

 

Kevin Welsh, Deputy Fiscal Analyst

Billie Brinkman, Committee Secretary

 

OTHERS PRESENT:

 

Lorne J. Malkiewich, Legislative Counsel, Legislative Counsel Bureau

Daniel G. Miles, Senate Fiscal Analyst

 

Chairman Rhoads called for introduction of a bill draft request (BDR).

 

BDR 32-957:Allows importation without license of wine by certain persons for personal use.

 

      SENATOR COFFIN MOVED FOR COMMITTEE INTRODUCTION OF

      BDR 32-957.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

       *****

 

Chairman Rhoads announced a "housekeeping" item was necessary at this time.  He explained during the meeting of January 21, 1993, Carole Vilardo, President of the Nevada Taxpayers Association, had presented a letter and a statement to the committee which referred to the governor's veto message on Senate Bill 295  of the Sixty-sixth Session.

 

      S. B. 295:  Requires registration of pharmacy technicians with

                  state board of pharmacy and requires board to

                    adopt regulations concerning pharmacy technicians.

 

Chairman Rhoads explained the error was in the bill number.  Ms. Vilardo should have referred to Senate Bill 660 of the Sixty-sixth Session.

 

      S. B. 660:  Provides certain exemptions from increase in rate

                    of Local School Support Tax pursuant to Assembly

                    Bill No. 295 of this session. (BDR 32-2323).

        

Chairman Rhoads called for a motion to correct the minutes of January 21, 1993, to refer to S. B. 660 rather than S. B. 295.

 

      SENATOR TOWNSEND MOVED FOR THAT CORRECTION.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      *****

 

Chairman Rhoads introduced Lorne J. Malkiewich, Legislative Counsel, who came forward to explain bills which have been introduced this legislative session.

 

Mr. Malkiewich firstly remarked on a hand-out, "Inadvertently Delivered" (Exhibit C).  He explained there was nothing wrong with the bills listed, it was just that the department which requested the bills no longer supported them, so the bills should not have been delivered to the Senate Committee on Taxation.  Therefore, Mr. Malkiewich said he would not be discussing those particular bills.

 

Mr. Malkiewich turned to a document entitled, "Summaries" (Exhibit D), which outlined bill draft requests assigned to the committee.  Topics covered on the "Summary" included:

 

      I.    Business License Fee

      II.   Sales and Use Taxes

      III.  Property Tax

      IV.   Taxes on Cigarettes and Alcohol

      V.    Tax "Shifts"

      VI.   Mining Taxes

      VII.  Transportation; Gas Taxes

      VIII. Indian Reservations and Colonies

      IX.   New Taxes

      X.    Administration

      XI.   Miscellaneous

 

Mr. Malkiewich gave a brief synopsis of each BDR listed.

 

Chairman Rhoads introduced Daniel G. Miles, Senate Fiscal Analyst.

 

Mr. Miles informed the committee members that a team from the fiscal analysis division had presented state revenue estimates the day before to a joint meeting of Assembly Committee on Ways and Means and Senate Committee on Finance.  And that on this date, the budget director [Judy Mateucci] had presented her revenue projects to support the Governor's budget.

 

And with that, Mr. Miles said he would walk the committee through the revenue estimates made by the fiscal analysis division and outline what those estimates are based on.

 

Mr. Miles said a member of the fiscal staff, an economist, tracks economic activity. He said a great deal of information is gathered from national, regional and local sources concerning the direction of the economy and that information provides some basis for the budget recommendations.  Initially, each agency which collects tax revenue gives the fiscal division an estimated balance they expect to collect.  He said the Department of Taxation and the Gaming Control Board are the two major entities with those capabilities. Mr. Miles said the same type system for revenue projections is used by the budget office of the Executive Branch.

 

Mr. Miles said during the past interim, a California consulting firm was engaged to prepare a computerized modeling capability for the major revenue sources for the state of Nevada.  He stated the information provided by that firm is used by the budget office of the Executive Branch and the fiscal division.  He said the fiscal division subscribes to Wharton Economic Forecast Associates (WEFA), a national economic forecasting firm.  Mr. Miles pointed out all revenue estimates, for any state, have to start with some kind of assumptions of what the national economy is doing, thus the purpose of WEFA.  Other consensus forecasts used include The Wall Street Journal, Standard and Pores, and First Interstate Bank analysis.

 

Mr. Miles called attention to a  "hand out" (Exhibit E) and walked the committee members through the document.   Subjects included in Exhibit E, which Mr. Miles stated was the same package presented to the "money" committees on the prior day, were:

 

      United States Economic Indicators (1979 to 1992 and Forecasts)

      California Economic Indicators (1980 to 1992 and Forecasts)

      Nevada Economic Indicators (1979 to 1992 and Forecasts)

      Nevada Taxable Sales & Gaming Win Growth Rates

      Taxable Sales Percent Changes

      General Fund Revenue

      Unappropriated General Fund Balance

      Nevada General Fund Revenues

      Comparison of General Fund Taxes

 

In his discussion of the topics, Mr. Miles requested the members note that the fiscal division anticipates the gaming percentage fees  will be a little lower than the present 6.7 percent by the end of the fiscal year.  He explained this was because there were some very good months a year ago that are not expected this year.  The estimate for the rest of this fiscal year has been slackened as double-digit percentage months are not expected, according to Mr. Miles.

 

Mr. Miles called attention to the "General Fund Revenue" regarding Low Level Surcharge, funds which were generated from the Beatty Dump Site.  He said there would be no more surcharge money coming to the general fund as the Beatty Dump Site was closed December 31, 1992.

 

Mr. Miles then went to the next handout,"Summary Comparison of General Fund Revenue and Reversions for Fiscal Year 1993, Fiscal Year 1994, and Fiscal Year 1995, Budget Division and Fiscal Analysis Division" (Exhibit F), which he quickly "walked" the committee members through.

 

Chairman Rhoads thanked Mr. Malkiewich and Mr. Miles for their informative presentations.

 

The meeting was adjourned at 3:40 p.m.

 

                         RESPECTFULLY SUBMITTED:

 

 

 

                                                     

                         Billie Brinkman

                         Committee Secretary

 

APPROVED BY:

 

 

 

                                

Senator Dean A. Rhoads, Chairman

 

 

DATE:                           

??

 

 

 

 

 

 

 

Senate Committee on Taxation

January 26, 1993

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