MINUTES OF THE
SENATE COMMITTEE ON TAXATION
Sixty-seventh Session
June 15, 1993
The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 3:20 p.m., on Tuesday, June 15, 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 Ernest E. Adler
COMMITTEE MEMBERS ABSENT:
Senator Raymond C. Shaffer (Excused)
OTHER LEGISLATORS PRESENT:
Assemblywoman Jan Evans, Assembly District No. 30
STAFF MEMBERS PRESENT:
Kevin Welsh, Deputy Fiscal Analyst
Billie Brinkman, Committee Secretary
OTHERS PRESENT:
Sue Wagner, Lieutenant Governor, State of Nevada
Cecilia Colling, Deputy Director, Commission on Economic
Development
Pat Coward, Lobbyist, Economic Development Authority of Western
Nevada
Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association
Joan Clements, Administrator, Department of Commerce,
Manufactured Housing Division
Kit Weaver, Carson City Assessor
Raymond L. Sparks, Chief, Registration Division, Department of
Motor Vehicles and Public Safety
Patrick V. Fagan, Lobbyist, Yellow-Checker-Star Cab Companies
Perry Comeaux, Executive Director, Nevada Department of Taxation
Tom Atkinson, Chief, Law Enforcement Division, Department of
Wildlife
Al Boardman, Administrative Services, Department of Wildlife
Jim Weishaupt, Manager, Walker River Irrigation District
Chairman Rhoads opened the meeting by requesting committee introduction of four bill draft requests. The first being Bill Draft Request (BDR) 53-1865.
BDR 53-1865: Provides credit for tips against minimum wage.
SENATOR ANN O'CONNELL MOVED FOR COMMITTEE INTRODUCTION OF
BDR 53-1865.
SENATOR TOWNSEND SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE).
*****
The next request for a committee introduction was for Bill Draft Request (BDR) 32-1948.
BDR 32-1948: Revises provisions governing distribution of revenue from supplemental city-county relief tax.
SENATOR COFFIN MOVED FOR COMMITTEE INTRODUCTION OF
BDR 32-1948.
SENATOR TOWNSEND SECONDED THE MOTION.
Kevin Welsch, Deputy Fiscal Analyst, gave an explanation of the BDR.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE).
*****
A committee introduction for Bill Draft Request (BDR) 32-1493 was called for by Chairman Rhoads.
BDR 32-1493: Provides exemptions from increases in certain taxes for labor and materials used for construction contracts executed before increase is adopted.
SENATOR O'CONNELL MOVED FOR COMMITTEE INTRODUCTION OF
BDR 32-1493.
SENATOR TOWNSEND SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE).
*****
Chairman Rhoads ask for a committee introduction of Bill Draft Request
(BDR) R-2115.
BDR R-2115:Expresses Nevada Legislature's support of decision of President of United States to abandon "BTU" tax and expresses opposition to any federal tax on energy.
SENATOR TOWNSEND MOVED FOR COMMITTEE INTRODUCTION OF
BDR R-2115.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS ADLER AND COFFIN VOTED NO.
SENATOR SHAFFER WAS ABSENT FOR THE VOTE).
*****
Chairman Rhoads opened the hearing on Senate Bill (S.B.) 519.
SENATE BILL 519: Revises exemption from business tax for proposed businesses.
Chairman Rhoads explained this bill came about because a similar assembly measure, Assembly Bill (A.B.) 448 supposedly had been killed.
ASSEMBLY BILL 448: Revises exemption from business tax for proposed businesses.
Chairman Rhoads continued, saying S.B. 519 and A.B. 448 have both been received by this committee. He informed the committee the assembly version would also be heard at a later date.
Sue Wagner, Lt. Gov. of the State of Nevada, and Cecilia Colling, Deputy Director, Commission on Economic Development, came forward to explain S.B. 519.
Ms. Wagner read a prepared statement (Exhibit C) in support of the measure and explained the attachments. Ms. Wagner informed the committee that she was speaking on behalf of the Commission on Economic Development whose members fully support the legislation.
Ms. Colling answered questions asked by the committee members and explained S.B. 519.
Pat Coward, Lobbyist, Economic Development Authority of Western Nevada, and speaking on behalf of the Nevada Development Authority, Las Vegas, came forward in support of S.B. 519.
Assemblywoman Jan Evans, Assembly District No. 30, spoke briefly in support of S.B. 519.
Chairman Rhoads closed the hearing on S.B. 519 and opened the hearing on Assembly Bill 482.
ASSEMBLY BILL 482: Establishes procedure whereby certain mobile homes may be converted from real to personal property for purpose of taxation.
Charlie Joerg, Lobbyist, Nevada Manufactured Housing Association, explained the measure. He said the Nevada Revised Statutes (NRS) presently allow a manufactured mobilehome to be converted to real property from personal property. He explained A.B. 482 would permit, in such circumstances where a manufactured mobilehome has been converted to real property, to re-convert that mobilehome back to personal property in very limited circumstances. He cited examples of such circumstances which had occurred. Mr. Joerg pointed out there is a provision in A.B. 482 that would allow only a transfer of title to a different owner to be effected.
Chairman Rhoads inquired if there was a fiscal note attached to A.B. 482. Mr. Joerg said the measure had been amended so the fiscal note was eliminated.
Joan Clements, Administrator, Manufactured Housing Division, indicated she supports A.B. 482 as amended.
Kit Weaver, Carson City Assessor, said the Assessor's Association of Nevada strongly supports A.B. 482.
Discussion followed.
Chairman Rhoads closed the hearing on A.B. 482.
Chairman Rhoads opened the work session with Senate Bill (S.B.) 455.
SENATE BILL 455: Eliminates conversion factor for liquefied petroleum gas used in calculation of tax on special fuel.
Ray Sparks, Chief, Registration Division, Department of Motor Vehicles and Public Safety, talked and outlined a prepared packet (Exhibit D, the original is on file in the research library) which outlined the legislative history of the conversion formula for compressed natural gas and liquified petroleumn gas, now codified in NRS 366.197. Mr. Sparks said the Department of Motor Vehicles and Public Safety is concerned about administration of the conversion factor.
Discussion followed.
Patrick Fagan, Lobbyist, Yellow-Checker-Star Cab Co., came forward to answer questions asked by the committee.
Chairman Rhoads entertained a motion on S.B. 455.
SENATOR O'CONNELL MOVED TO INDEFINITELY POSTPONE S.B. 455.
SENATOR LOWDEN SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
*****
Chairman Rhoads opened the work session on Senate Bill (S.B.) 465.
SENATE BILL 465: Revises definition of "liquor" for purposes of taxation.
Perry Comeaux, Executive Director, Nevada Department of Taxation, informed the committee that through research it had been determined there is no product currently available in Nevada which would be affected by this measure.
SENATOR ADLER MOVED TO INDEFINITELY POSTPONE S.B. 465.
SENATOR C'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR SHAFFER WAS ABSENT FOR THE VOTE.)
*****
Chairman Rhoads opened the work session on Senate Bill (S.B.) 486.
SENATE BILL 486: Makes changes in taxing sale and use of motorboats.
Tom Atkinson, Chief Law Enforcement Division, Department of Wildlife, and Al Boardman, Chief Administrator of Services, Department of Wildlife, came forward to oppose S.B. 486. Mr. Atkinson said there are five major areas in the measure which concern the Department of Wildlife and he outlined those areas.
SENATOR COFFIN MOVED TO INDEFINITELY POSTPONE S.B. 486.
SENATOR O'CONNELL SECONDED THE MOTION.
THE MOTION CARRIED. (SENATORS SHAFFER AND TOWNSEND WERE ABSENT FOR THE VOTE).
*****
Chairman Rhoads opened the work session 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, came forward in support of A.B. 305, and gave a further explanation of the measure.
He suggested an amendment to the measure and Chairman Rhoads asked Senator Adler to work with Mr. Weishaupt on the amendment.
Further discussion ensued.
Chairman Rhoads closed the hearing on A.B. 305.
Chairman Rhoads opened the work session on Assembly Bill (395).
ASSEMBLY BILL 395: Establishes maximum rate of ad valorem tax levied for support of jail for Washoe County and cities of Reno and Sparks.
Chairman Rhoads said the committee would not take action on this measure at this time.
There being no further business to come before the committee, the meeting was adjourned at 4:15 p.m.
RESPECTFULLY SUBMITTED:
Billie Brinkman,
Committee Secretary
APPROVED BY:
Senator Dean A. Rhoads, Chairman
DATE:
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Senate Committee on Taxation
June 15, 1993
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