MINUTES OF THE
SENATE COMMITTEE ON TAXATION
Sixty-seventh Session
March 18, 1993
The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 2:00 p.m., on Thursday, March 18, 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
GUEST LEGISLATORS PRESENT:
Senator William Raggio, Senate District No. 3
Senator Raymond D. Rawson, Senate District No. 6
STAFF MEMBERS PRESENT:
Kevin Welsh, Deputy Fiscal Analyst
Billie Brinkman, Secretary
OTHERS PRESENT:
Donna Wadey, Assistant Chief, Registration Division, Department of
Motor Vehicles & Public Safety
John Sherman, Washoe County
Andy Goodrich, Washoe County Health Department
Marvin Leavitt, Lobbyist, City of Las Vegas
Kirby Burgess, Lobbyist, Clark County
M. Douglas Miller, President, Nevada Miners and Prospectors
Association
T. J. Day, Cattle Rancher
Tim Vince, Pahrump
Mary Walker, Carson City Finance Director
Charlie Joerg, Lobbyist, Eureka County
Bobbie Gang, Lobbyist, Nevada Pharmacists Association
Perry Comeaux, Executive Director, Department of Taxation,
State of Nevada
David Mello, Chairman, Nevada Board of Dispensing Opticians
Barbara McKenzie, Lobbyist, City of Reno
Max Page, President, Downtown Renovation Association, Reno
Richard Kirkland, Chief of Police, City of Reno
David Howard, Vice President of Legislative Affairs, Reno/Sparks
Chamber of Commerce
Chairman Rhoads opened the work session on the agenda.
Chairman Rhoads called for a motion on Senate Bill (S.B.) 33.
SENATE BILL 33 : Revises provision governing sales of cigarettes between wholesale dealers.
SENATOR SHAFFER MOVED TO DO PASS S.B. 33.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (Senator Townsend and Senator O'Connell were not present for the vote.)
*****
Chairman Rhoads called for a motion on Senate Bill (S.B.) 95.
SENATE BILL 95: Authorizes certain persons to waive their exemptions from motor vehicle privilege tax and designate additional amount paid to be credited to fund for veterans' homes.
SENATOR SHAFFER MOVED TO DO PASS S.B. 95.
SENATOR ADLER SECONDED THE MOTION.
THE MOTION CARRIED. (Senator Townsend and Senator O'Connell were not present for the vote.)
*****
Chairman Rhoads called for a motion on Assembly Bill (A.B.) 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.
SENATOR SHAFFER MOVED TO DO PASS A.B. 1.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED. (Senator Townsend and Senator O'Connell
were not present for the vote.)
*****
Chairman Rhoads called for a motion on Assembly Bill (A.B.) 32.
ASSEMBLY BILL 32:Allows counties to issue general obligation bonds for sewerage projects.
SENATOR COFFIN MOVED TO DO PASS A.B. 32.
SENATOR SHAFFER SECONDED THE MOTION.
THE MOTION CARRIED. (Senator Townsend and Senator O'Connell were not present for the vote).
*****
Chairman Rhoads opened the hearing on Senate Bill (S.B.) 46.
SENATE BILL 46: Requires vehicle to be registered in county where owner of vehicle resides.
Senate William Raggio, Senate District No. 3, sponsor of S.B. 46, explained the measure. He pointed out that it had been the original legislative intent that persons residing within a county who owned or operated a motor vehicle, would register that vehicle in the county of their residence. He said there are two reasons why residents of Washoe County choose to register their vehicle in one of the adjoining counties: 1) Washoe County has a higher motor vehicle privilege tax; and 2) Washoe County mandates a smog inspection test for a fee. Simply, the reason for S.B. 46 is to mandate the resident of a county to license their vehicles in the county of their residence. He said in some instances a stated exemption could be suitable.
Discussion ensued.
Donna Wadey, Assistant Chief of the Registration Division, Department of Motor Vehicles and Public Safety, informed the committee the division is currently working on the fiscal note for S.B. 46. She said there are many issues to be dealt with in this fiscal note.
She indicated the division is analyzing the data that has been collected and the fiscal note should be ready soon.
John Sherman, representing Washoe County, and Andy Goodrich, Washoe County Health Department, testified in support of S.B. 46. Mr. Goodrich read a prepared text (Exhibit C).
Marvin Leavitt, Lobbyist, City of Las Vegas, indicated support of S.B. 46.
Senator Adler remarked the original statute says a person may only register their vehicle where it is primarily stored and maintained. He added testimony says people are now violating the current statute. He questioned why the counties are not enforcing the current law rather than changing the law.
Discussion followed.
Kirby Burgess, Lobbyist, Clark County, came forward in support of S.B. 46.
M. Douglas Miller, President, Nevada Miners and Prospectors Association, opposed S.B. 46. He reiterated Senator Adler's statement that a law is already in place, it just needs to be enforced.
T. J. Day, Cattle Rancher, testified in opposition to S.B. 46.
Tom Vince, Pahrump, spoke in opposition to S.B. 46.
Mary Walker, Carson City Finance Director, spoke on S.B. 46. She said the theory behind changing the current law so that the taxes go back to where the taxpayer resides, is a valid argument. Ms. Walker indicated Carson City had asked the Department of Motor Vehicles and Public Safety for an impact report on Carson City. She said the report was not complete, however, they did know Carson City was importing $350,000 from vehicles with owners living in another county. She said that kind of "hit" on Carson City would be tremendous. She requested that when the numbers do come out, the counties are given an opportunity to look at it. Also, if there is a loss, she would like to be able to increase the Carson City taxes to compensate for the loss.
Charlie Joerg, Lobbyist, Eureka County, said he thought the concept of S.B. 46 is not a problem. However, he said the problems it may create in rural areas needs to be addressed.
Chairman Rhoads closed the hearing on S.B. 46.
Chairman Rhoads opened the hearing on Senate Bill (S.B.) 255.
SENATE BILL 255: Proposes to expand exemption for certain medical equipment, products and supplies from taxes on retail sales.
Senator Raymond D. Rawson, Senate District No. 6, sponsor of S.B. 255,
explained the measure is meant to be a clarification, and he pointed out the fiscal note is more serious than he had supposed. It is estimated at $11.2 million. He commented the taxes add to the already high costs of medical care. He explained S.B. 255 simply cuts out all the lengthy explanations and substitutes in place of that, any medical equipment, product or supplies, including any medicine. He added medicine is basic to the individual, just as is food.
Bobbie Gang, Lobbyist, Nevada Pharmacists Association, said that association wishes to echo Senator Rawson's comments. She said although S.B. 255 would have an impact, they felt there are people in Nevada who would benefit from the exemption from sales tax for medical equipment.
Chairman Rhoads requested Perry Comeaux, Executive Director, Nevada Tax Commission, State of Nevada, to come forward so that he could answer questions from the committee. Mr. Comeaux said in the opinion of the commission, the fiscal impact which has been stated is a fairly conservative estimate of what the fiscal impact would be, because of the way the estimate was made. Most of the impact is due to the sale of non-prescription, over-the-counter type preparations. He said the main effect is the change in the definition of "medicine." Mr. Comeaux pointed out that under the current law, medicine has to be prescribed by a physician or furnished to a patient by a physician. He said S.B. 255 would provide for all over-the-counter medications to be exempt and that is the main portion of the fiscal impact.
Senator Rawson said the original intent of S.B. 255 was to get at items that are dispensed within a medical facility, not a store.
David Mello, Chairman, Nevada Board of Dispensing Opticians, testified in support of S.B. 255. He submitted a suggested amendment in written form (Exhibit D).
Mr. Comeaux came forward again to state an objection to S.B. 255. He said he basically objected to the general language in the measure, as it would be difficult for the department to administer. And he said he thought the fiscal impact of S.B. 255 would be severe.
Mr. Leavitt stated opposition to S.B. 255 because of the fiscal impact.
Chairman Rhoads closed the hearing on S.B. 255.
Chairman Rhoads opened the hearing on Senate Bill (S.B.) 267.
SENATE BILL 267: Repeals prospective expiration of certain provisions allowing creation of taxing district for additional police protection or for maintenance of improvements.
Barbara McKenzie, Lobbyist, City of Reno; Max Page, President, Downtown Renovation Association; and Richard Kirkland, Chief of Police, City of Reno, came forward to comment on S.B. 267.
Ms. McKenzie presented written testimony (Exhibit E).
Mr. Page presented written testimony (Exhibit F).
Chief Kirkland testified in support of S.B. 267.
David Howard, Vice President, Legislative Affairs, Reno/Sparks Chamber of Commerce, came forward to fully endorse S.B. 267.
Chairman Rhoads closed the hearing on S.B. 267.
Chairman Rhoads indicated there was a request for a Bill Draft Request.
Intent of Proposed Bill: To provide an allowable credit taken by an employer towards the minimum wage for tips or gratuities received by an employee. Effective July 1, 1991 up to a 50 percent credit is allowed towards the minimum wage when a signed written report of tips received is furnished by the employee.
SENATOR COFFIN MOVED FOR COMMITTEE REQUEST FOR A BILL DRAFT.
SENATOR TOWNSEND SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
There being no further business to come before the committee, Chairman Rhoads adjourned the meeting at 3:08 p.m.
RESPECTFULLY SUBMITTED:
Billie Brinkman,
Committee Secretary
APPROVED BY:
Senator Dean A. Rhoads, Chairman
DATE:
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Senate Committee on Taxation
March 18, 1993
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