MINUTES OF THE

      SENATE COMMITTEE ON TAXATION

 

      Sixty-seventh Session

      February 23, 1993

 

 

 

 

 

The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 1:35 p.m., on Tuesday, February 23, 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 Sue Lowden

Senator Bob Coffin

Senator Raymond C. Shaffer

 

COMMITTEE MEMBERS ABSENT:

 

Senator Randolph J. Townsend (Excused)

Senator Ernest E. Adler (Excused)

 

STAFF MEMBERS PRESENT:

 

Kevin Welsh, Deputy Fiscal Analyst

Billie Brinkman, Committee Secretary

 

OTHERS PRESENT:

 

Douglas R. Bell, Manager, Community Resources Management, Clark

      County Finance Department

John Sherman, Management Analyst, Washoe County

Bill Whitney, Planner, Washoe County Department of Comprehensive

      Planning

Perry Comeaux, Executive Director, Department of Taxation, State of

      Nevada

David Morton, Reno Housing Authority

C. O. Watson, Executive Director, Nevada Association of Tobacco

      & Candy Wholesalers

 

 

Chairman Rhoads opened the hearing on Senate Bill (S.B.) 33.

 

SENATE BILL 33:   Revises provision governing sales of cigarettes  between wholesale dealers.

           

            

C. O. Watson, Executive Director, Nevada Association of Tobacco & Candy Wholesalers, submitted written testimony (Exhibit C)  in support of S.B. 33 which he read to the committee. He answered questions from committee members as he explained Exhibit C.   In summation, Mr. Watson said the purpose of S.B. 33 was to put the wholesalers in Nevada on the same "level playing field" that begins from  the manufacturer, making the costs the same.

 

Chairman Rhoads reported he had received a phone message from the DiGrazia Wholesale Company, Wells, Nevada, indicating they support S.B. 33.

 

 

Chairman Rhoads closed the hearing on S.B. 33.

 

      *****

 

Chairman Rhoads opened the hearing on Senate Bill (S.B.) 35.

 

SENATE BILL 35:   Authorizes acquisition of certain property by local government for open-space use without paying delinquent taxes on property.

 

John Sherman, Management Analyst, Washoe County, and Bill Whitney, Planner, Washoe County Department of Comprehensive Planning, came forward to testify in support of  S.B.  35.

 

Mr. Whitney presented written testimony (Exhibit D)  which he read to the committee.

 

Senator O'Connell inquired if S.B. 35 would exempt payment of delinquent taxes on property if such property was designated as "open space."  Mr. Whitney replied in the affirmative, explaining passage of S.B. 35 would exempt property placed in the "open space program" from paying delinquent taxes and assessments and the property would be taken from the tax rolls.

 

Douglas R. Bell, Manager, Community Resources Management, Clark County Finance Department, came forward in support of S.B. 35 and submitted written testimony (Exhibit E) which he read.

 

Chairman Rhoads inquired if this particular program would be used very much in Clark County.  Mr. Bell replied it would be a special benefit to the cities who are engaging in neighborhood rehabilitation programs.

 

Chairman Rhoads closed the hearing on S.B. 35.

 

      *****

 

Chairman Rhoads opened the hearing on Senate Bill (S.B.) 36.

 

SENATE BILL 36:   Requires certain persons for whom audits outside of state are necessary to pay travel and other actual expenses incurred by the department of taxation in conducting the audit; and providing other matters properly relating thereto.

 

Perry Comeaux, Executive Director, Department of Taxation, State of Nevada, came forward to explain  S.B. 36.  He said it would correct the language of Section 2, Nevada Revised Statutes (NRS) 372.740.  He stated S.B. 36 would allow the tax department to require the taxpaying non-retailer as well as the consumers of tangible personal property, to pay actual costs of an audit when that audit is conducted outside of Nevada.  He said  for example, in fiscal 1992, the total billable out-of-state travel for audits was $67,848., and the tax department was able to collect only 45 percent of that figure.  He said the new language proposed in S.B. 36 would allow the department to basically become reimbursed for almost all of the out-of-state travel that is related to audits of the non-retailers and the consumers.

 

In reply to Senator Lowden's inquiry concerning who would be audited out-of-state,  Mr. Comeaux replied there are many retailers and consumers who do business in Nevada, however the records are maintained out-of-state.  He  indicated national retailers (chain stores) and/or construction companies were among those who would be likely to maintain records outside Nevada.

 

Chairman Rhoads closed the hearing on S.B. 36.

 

      *****

 

Chairman Rhoads adjourned the meeting at 2:03 p.m.

 

 

 

 

                        RESPECTFULLY SUBMITTED:

 

 

                                                      

                                Billie Brinkman,

                                Committee Secretary

 

                             

 

 

APPROVED BY:

 

 

 

 

                                 

Senator Dean A. Rhoads, Chairman

 

 

DATE:                           

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Senate Committee on Taxation

February 23, 1993

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