MINUTES OF THE

      SENATE COMMITTEE ON TAXATION

 

      Sixty-seventh Session

      April 20, 1993

 

 

 

The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 2:04 p.m., on Tuesday, April 20, 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 Walsh, Deputy Fiscal Analyst

Billie Brinkman, Committee Secretary

 

OTHERS PRESENT:

 

Carole Vilardo, Lobbyist, Nevada Taxpayers Association

Janice Wright, Deputy Executive Director, Nevada Tax Commission

Jim Weishaupt, Manager, Walker River Irrigation District

 

Chairman Rhoads opened the hearing on Senate Bill (S.B.) 372.

 

SENATE BILL 372:  Exempts child-care establishments from business tax.

 

Senator Ernest E. Adler, Capital Senatorial District, sponsor of S.B. 372, explained the point of the measure is basically the business tax structure.  He said the people using the child-care centers are usually low income residents and the tax is passed on to the customers of the child-care centers.  Senator Adler referred to a pamphlet (Exhibit C, the original is on file in the Research Department) prepared by the Child Care Resource Council in further explanation of S.B. 372.                   

 

Senator Rhoads expressed the concern that one approved tax exemption would cause other businesses to request similar treatment.

 

Senator Adler said he thought this particular type of problem where a service such as child care is provided should be looked at by the committee because the tax cost is directly passed on to the consumers who cannot afford to do without the services.  Senator Adler said he would be open to any suggestions or amendments in order to provide relief to such consumers.

 

Discussion ensued.

 

Senator Townsend indicated he would support this type measure if it could be suitably amended.  He said he had served on an interim committee for child care and he saw the need for keeping child care costs affordable.  He said he thought this problem is part of the overall public policy issue.

 

Senator O'Connell stressed the need for the committee to examine all requests for exemptions.  She said she thought the committee should establish some criteria for businesses to meet when asking for any exemption and that a policy for review of exemptions should be established.

 

Chairman Rhoads said it was his position that measures requesting exemptions would be held until such policies can be established by the committee.

 

Senator Shaffer remarked that when an exemption is made, he would like to have some assurance that the customer be the beneficiary rather than the proprietor of the respective business.

 

Further discussion ensued.

 

Carole Vilardo, Lobbyist, Nevada Taxpayers Association, came forward in opposition to S.B. 372.  She said her concern was the erosion of the tax base.

 

Janice Wright, Deputy Executive Director, Department of Taxation,  clarified the Fiscal Note on S.B. 372.  She explained that information had been gained from the Employment Security Division which revealed there are 166 child care firms,  with each firm averaging a little over 13 employees per firm.  In the fiscal note which was prepared for Fiscal 1992, an amount of $235,875 is shown, and $4,500 was incorrectly  included which was not a cost to the Department of Taxation.  Ms. Wright indicated that $4,500 should be deleted from the fiscal note.

 

Chairman Rhoads closed the hearing on S.B. 372.

 

Chairman Rhoads opened the hearing on Assembly Bill (A.B.) 305.

 

ASSEMBLY BILL 305:      Authorizes levy of property tax for costs of protecting supply and distribution of water of irrigation districts.

 

Jim Weishaupt, Manager, Walker River Irrigation District, read a prepared statement (Exhibit D) in support of A.B. 305.

 

A question and answer period followed the statement by Mr. Weishaupt.

 

Chairman Rhoads closed the hearing on A.B. 305.

 

There being no further business to come before the committee, Chairman Rhoads adjourned the meeting at 2:30 p.m.

 

 

 

 

                  RESPECTFULLY SUBMITTED:

     

 

 

                                          

                  Billie Brinkman,

                  Committee Secretary

 

 

 

APPROVED BY:

 

 

 

 

                                

Senator Dean A. Rhoads, Chairman

 

 

DATE:                           

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Senate Committee on Taxation

April 20, 1993

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