MINUTES OF THE

      SENATE COMMITTEE ON TAXATION

 

      Sixty-seventh Session

      June 22, 1993

 

 

 

The Senate Committee on Taxation was called to order by Chairman Dean A. Rhoads, at 2:50 p.m., on Tuesday, June 22, 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:

 

Assemblywoman Jan Evans, Assembly District No. 30

 

STAFF MEMBERS PRESENT:

 

Kevin Welsh, Deputy Fiscal Analyst

Billie Brinkman, Committee Secretary

 

OTHERS PRESENT:

 

Sue Wagner, Lt. Governor, State of Nevada

Cecilia Colling, Deputy Director, Commission on Economic Development

Peter D. Krueger, Lobbyist, Western Petroleum Marketers Association

Janine Hansen, Lobbyist, Nevada Eagle Forum

Bonnie James, Lobbyist, Las Vegas Chamber of Commerce

Carole Vilardo, Lobbyist, Nevada Taxpayers Association

Joanna Davis, Private Citizen, Lander County

Robyn Etchinek, Private Citizen, Lander County

 

Chairman Rhoads requested a committee introduction for Bill Draft Request (BDR) 20-1973.

 

BDR 20-1973:      Facilitates enforcement of taxes upon transient lodging.

 

      SENATOR TOWNSEND MOVED FOR COMMITTEE INTRODUCTION OF BDR 20-1973.

 

      SENATOR LOWDEN SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATORS SHAFFER AND ADLER WERE ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads opened the hearing on Assembly Bill (A.B.) 448.

 

ASSEMBLY BILL 448:      Revises exemption from business tax for proposed businesses.

 

Chairman Rhoads informed the committee this measure is the same issue as Senate Bill (S.B.) 519 which had been heard by the committee June 15, 1993.

 

SENATE BILL 519:  Revises exemption from business tax for proposed businesses.

 

Sue Wagner, Lt. Governor, State of Nevada, and Assemblywoman Jan Evans, Assembly District No. 30, came forward to discuss A.B. 448, and to reiterate testimony given when the bill was previously heard June 15, 1993.

 

Ms. Colling answered questions posed by the committee members.

 

Chairman Rhoads closed the hearing on A.B. 448 and opened the hearing on Senate Joint Resolution (S.J.R.) 29.

 

SENATE JOINT RESOLUTION 29: 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.

 

Chairman Rhoads announced there would be a press conference concerning S.J.R. 29 at 10:30 a.m., July 23, 1993, in the press room.  He said the press conference would be attended by experts from Washington, D.C., who would talk on statistics that would show the impact the energy tax presently in the "Clinton Budget" will have on the state of Nevada.  He told the committee that although some think the "BTU" tax is dead, that he understands from people he has spoken with in Washington, D. C., there is a likelihood it could be renewed through pending legislation.  Chairman Rhoads informed the committee the reason for the press conference and the rush placed on S.J.R. 29 is the fact the energy tax would be voted on in the U. S. Senate on Thursday, June 24, 1993.  He explained because of the miles one necessarily has to travel in Nevada, the energy tax would create a real fiscal impact on the state.

 

Peter D. Krueger, Lobbyist, Western Petroleum Marketers Association, came forward in support of S.J.R. 29.  He testified that an increase of 4.3 cents per gallon,  whether it is through a British Thermal Unit (BTU) tax or the motor fuel excise tax, which is currently being talked about in Washington, D.C., is a tax strictly on motor fuels--diesel and gasoline.  He reiterated that because of the distances in Nevada it would create a hardship on motor vehicle type transportation.  He concluded his remarks by saying the association he represents strongly urges the adoption of S.J.R. 29.

 

Janine Hansen, Lobbyist, Nevada Eagle Forum, spoke in support of S.J.R. 29.  She said she feels it would  "send a message to the President and the Congress of the United States that American people are burdened with excessive taxation and that spending should be cut rather than increasing taxes."

 

Bonnie James, Lobbyist, Las Vegas Chamber of Commerce, said that she supports the philosophy of this type of legislation basically due to the miles necessary to travel in Nevada.

 

Chairman Rhoads asked for a motion on Senate Joint Resolution 29.

 

      SENATOR TOWNSEND MOVED TO DO PASS S.J.R. 29.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED. (SENATORS SHAFFER AND ADLER WERE ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads opened the hearing on Assembly Bill (A.B.) 282.

 

ASSEMBLY BILL 282:      Authorizes local governments to impose property tax for "pay as you go" financing of public works upon approval of voters.

 

Carole Vilardo, Lobbyist, Nevada Taxpayers Association, explained the measure. She said A.B. 282 provides the local governments with flexibility to get funding for capital projects and yet does not present an element of competition for tax rates within local government entities.  Ms. Vilardo referred to (Exhibit C) explaining there was an obscure provision in the Nevada Revised Statutes (NRS) which had never been used, which allows any county to levy up to 25 cents property tax for 14 years without going to a vote of the people.  Ms. Vilardo referred to a newspaper article which appeared in the Battle Mountain Bugle, June 8, 1993 (Exhibit D).  She then talked on proposed assessed valuations of Lander County (Exhibit E).

 

Ms. Vilardo completed her testimony by urging the committee to favorably process A.B. 282.

 

Joanna Davis, Private Citizen, Lander County, came forward in support of A.B. 282.

 

Robyn Etchenek, Private Citizen, Lander County, indicated she supports A.B. 282.

 

Chairman Rhoads closed the hearing on A.B. 282.

 

Chairman Rhoads  opened the work session on the agenda and called for a motion on Assembly Bill 448.

 

      SENATOR TOWNSEND MOVED TO DO PASS A.B. 448.

 

      SENATOR SHAFFER SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads asked for a motion on Senate Bill (S.B.) 446.

 

SENATE BILL 446:  Reduces rate of interest on delinquent taxes.

 

      SENATOR TOWNSEND MOVED TO DO PASS AND RE-REFER S.B. 446 TO THE SENATE COMMITTEE ON FINANCE.

 

      SENATOR LOWDEN SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Senate Bill (S.B.) 449.

 

SENATE BILL 449:  Imposes excise tax on handguns and certain cartridges sold in Nevada.

 

      SENATOR ADLER MOVED TO INDEFINITELY POSTPONE S.B. 449.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Senate Bill (S.B.) 480.

 

SENATE BILL 480:  Increases taxes on alcohol, cigarettes and other tobacco products and provides for distribution of increased taxes.

 

      SENATOR TOWNSEND MOVED TO INDEFINITELY POSTPONE S.B. 480.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Senate Bill 502.

 

SENATE BILL 502:  Requires department of taxation, under specified circumstances, to provide credit or refund to retailer who has paid taxes on property sold by him but who has been unable to collect sales price.

 

      SENATOR LOWDEN MOVED TO DO PASS AND RE-REFER S.B. 502 TO THE SENATE COMMITTEE ON FINANCE.

     

      SENATOR TOWNSEND SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on S.B. 519.

 

      SENATOR TOWNSEND MOVED TO INDEFINITELY POSTPONE S.B. 519.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Assembly Bill (A.B.) 103.

 

ASSEMBLY BILL 103:      Authorizes counties to increase rate of tax imposed for public mass transportation and construction of public roads upon approval by registered voters of county.

 

Chairman Rhoads informed the committee he had an amendment to A.B. 103.

 

Ms. Vilardo came forward to remark the language in the amendment is "fine."

 

      SENATOR ADLER MOVED TO AMEND AND DO PASS A.B. 103.

 

      SENATOR O'CONNELL SECONDED THE MOTION.

 

Senator Townsend indicated he was disturbed by A.B. 103 because of the language which states "primary or general election."  He said bond issues or special interest issues  should be dealt with only in general elections when the greater amount of people take the opportunity to vote.  And he said he did not care for the language which states, "it can be used for mass transportation and for public roads."  He stated the public clamor in Washoe County has been for roads rather than mass transportation.  Senator Townsend said he thinks the language is not narrow enough.

 

Chairman Rhoads called for the vote.

 

      THE MOTION FAILED.  (SENATORS O'CONNELL, TOWNSEND AND LOWDEN VOTED NO.  SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Assembly Bill (A.B.) 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.

 

      SENATOR ADLER MOVED TO DO PASS A.B. 395.

 

      SENATOR SHAFFER SECONDED THE MOTION.

 

Senator Townsend indicated the traditional problems in bond issues is that they  are manifested within and in especially in this particular situation outlined in the A.B. 395.

 

Senator Adler made remarks in support of A.B. 395.

 

Chairman Rhoads called for the vote.

 

      THE MOTION FAILED.  (SENATORS O'CONNELL, TOWNSEND AND LOWDEN VOTED NO.  SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion 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.

 

      SENATOR TOWNSEND MOVED TO DO PASS A.B. 305.

 

      SENATOR ADLER SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATORS O'CONNELL AND LOWDEN VOTED NO.  SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Assembly Bill (A.B.) 482.

 

ASSEMBLY BILL 482:      Establishes procedure whereby certain mobile homes may be converted from real to personal property for purpose of taxation.

 

      SENATOR ADLER MOVED TO DO PASS A.B. 482.

 

      SENATOR TOWNSEND SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

Chairman Rhoads called for a motion on Assembly Bill 282.

 

      SENATOR TOWNSEND MOVED TO DO PASS A.B. 282.

 

      SENATOR SHAFFER SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR COFFIN WAS ABSENT FOR THE VOTE.)

 

      *****

 

There being no further business to come before the committee, the meeting was adjourned at 3:45 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 22, 1993

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