MINUTES OF THE
SENATE COMMITTEE ON TAXATION
Sixty-seventh Session
March 30, 1993
The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 2:03 p.m., on Tuesday, March 30, 1993, in Room 224 of the Legislative Building, Carson City, Nevada. Exhibit A is the Meeting Agenda. There was no 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:
Janice Wright, Deputy Executive Director, Department of Taxation
Chairman Rhoads announced Senate Bill 326 would be rescheduled.
SENATE BILL 326: Provides exceptions to statutory limit on tax rate ad valorem.
Chairman Rhoads opened a work session on Senate Bill (S.B.) 189.
SENATE BILL 189: Exempts sales through vending machines from city-county relief.
Chairman Rhoads announced he believed S.B. 189 should be re-referred to the Senate Committee on Finance because it has a fiscal note of approximately $300,000. He asked the pleasure of the committee on the bill.
Senator O'Connell said she would like to discuss the philosophy of the committee as far as tax exemptions, adding taxes or deleting any present taxes. She continued, saying if there is going to be any area where taxes are deleted or exemptions are made, then the committee should have in mind in which areas those changes would be countered.
Discussion ensued.
Senator Adler spoke in defense of S.B. 189.
Senator Townsend commented on the philosophy of the committee and suggested a discussion be held by the committee, perhaps in a work session, on the philosophy of taxation in general. He said every problem which comes to the committee is special and should be addressed on the basis of some kind of philosophy and foundation. He indicated such a philosophy might assist in shifting the emphasis which has traditionally been put on the taxation committee at the end of a legislative session, and perhaps send a message to those on the finance committee that the taxation committee would like to look at tax policy which could be more of a driving force than the tax-users side.
SENATOR TOWNSEND MOVED TO DO PASS S.B. 189 AND RE-REFER IT
TO THE SENATE COMMITTEE ON FINANCE.
SENATOR ADLER SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Chairman Rhoads opened the work session 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.
SENATOR O'CONNELL MOVED TO DO PASS S.B. 267.
SENATOR COFFIN SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Chairman Rhoads opened the work session on Assembly Bill (A.B.) 101.
ASSEMBLY BILL 101: Authorizes department of taxation to waive payment of interest on certain taxes.
Senator Coffin discussed the lowering of the interest rate through an amendment on A.B. 101. However, he said there was opposition to an amendment, so he requested support from the committee to ask for a bill draft request which would serve the same purpose as the proposed amendment. The committee was amenable to the request.
SENATOR COFFIN MOVED FOR A BILL DRAFT REQUEST TO REDUCE THE
AMOUNT OF INTEREST CHARGED ON DELINQUENT TAXES.
SENATOR TOWNSEND SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
Chairman Rhoads asked for a motion on A.B. 101.
SENATOR O'CONNELL MOVED TO DO PASS A.B. 101.
SENATOR TOWNSEND SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
*****
Chairman Rhoads opened the work session on Assembly Bill (A.B). 136.
ASSEMBLY BILL 136: Revises governing assessment of agricultural and open space land for property taxation.
Senator Coffin stated that Dick Franklin, Lobbyist, Nevada Assessors' Association, had requested an amendment.
Chairman Rhoads said A.B. 136 would be processed when the amendment was completed.
Chairman Rhoads closed the work session on A.B. 136.
Chairman Rhoads opened the work session on Assembly Bill (A.B.) 137.
ASSEMBLY BILL 137: Makes various changes concerning assessment of property for taxation.
SENATOR ADLER MOVED TO DO PASS A.B. 137.
SENATOR O'CONNELL SECONDED THE MOTION.
MOTION CARRIED UNANIMOUSLY.
****
Chairman Rhoads opened a work session on Assembly Bill (A.B.) 173.
ASSEMBLY BILL 173: Proposes to exempt horses from certain taxes on retail sales.
SENATOR COFFIN MOVED TO DO PASS A.B. 173.
SENATOR TOWNSEND SECONDED THE MOTION.
Discussion followed.
Senator Lowden inquired if A.B. 173 should be re-referred to the Senate Committee on Finance. Chairman Rhoads replied he would check with Senator William Raggio, Chairman of the Senate Finance Committee, however, he believed the fiscal impact would not be substantial.
Senator O'Connell indicated she thought if this particular tax collection was enforced that there could be a substantial amount of money collected.
Janice Wright, Deputy Executive Director, Department of Taxation, came forward to remark on this particular tax. She said currently there are eight companies located in Nevada that are registered in the fiscal note. She said the Department of Taxation anticipated that if there was an exhaustive study, there would be more companies. However, she explained, it is difficult to know how many people are actually selling more than two horses in a 12-month period. She said the fiscal impact is understated, just because of what the search brought out.
Chairman Rhoads inquired if A.B. 173 was not processed, would the Department of Taxation put on extra staff to ferret out others selling more than two horses a year. Ms. Wright replied that expense is not included in the budget.
Senator Lowden said she had a hard time supporting A.B. 173 because she said other animals were not exempt and if horses were exempt then where "do we draw the line."
Senator Coffin pointed out previous testimony had shown that other
animals for consumption are exempt.
Chairman Rhoads called for the vote.
THE MOTION CARRIED. (SENATORS O'CONNELL AND LOWDEN VOTED NO.)
*****
There being no further business, Chairman Rhoads adjourned the meeting at 2:25 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 30, 1993
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