MINUTES OF THE Meeting

of the

ASSEMBLY Committee on Taxation

 

Seventy-First Session

June 1, 2001

 

 

The Committee on Taxationwas called to order at 2:38 p.m., on Friday, June 1, 2001.  Chairman David Goldwater presided in Room 3142 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Agenda.  Exhibit B is the Guest List.  All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

 

 

COMMITTEE MEMBERS PRESENT:

 

Mr.                     David Goldwater, Chairman

Mr.                     Roy Neighbors, Vice Chairman

Mr.                     Bernie Anderson

Mr.                     Morse Arberry Jr.

Mr.                     David Brown

Mrs.                     Vivian Freeman

Mr.                     John Marvel

Mr.                     Harry Mortenson

Mr.                     David Parks

Mr.                     Bob Price

 

 

COMMITTEE MEMBERS ABSENT:

 

Mr.                     Greg Brower - Excused

Ms.                     Sandra Tiffany - Excused

 

 

GUEST LEGISLATORS PRESENT:

 

Assemblyman Lynn Hettrick, Assembly District 39

 

 

STAFF MEMBERS PRESENT:

 

Ted Zuend, Fiscal Analyst

Cheryl O'Day, Committee Secretary

 

 

OTHERS PRESENT:

 

Madelyn Shipman, Assistant District Attorney, Washoe County

Barbara Byington, Assessor, Douglas County

 

 

Assembly Bill 668:  Temporarily limits annual increase in taxable value of property in certain areas for assessment of property taxes. (BDR 32-1551)

 

Assemblyman Lynn Hettrick introduced himself as representing Assembly District 39.  He advised that he took the bill and the proposed amendment to bill drafting.  As crafted, the proposed legislation would have required the use of multiple statutes and would have been almost impossible to structure.  The language had since been revised accordingly.

 

Assemblyman Hettrick advised that the language was brought back to its original form in S.B. 376.  As revised with the assistance of bill drafting, the proposed legislation was now not unconstitutional on its face (Exhibit C).  He allowed the language might be unconstitutional but, as revised, a court case would be required to ascertain such determination.  Assemblyman Hettrick confirmed that he had agreed to the cap, it began with the current tax year, was not retroactive, and would be set at 6 percent until its sunset date in 2 years.  He believed S.J.R. 11 of the Seventieth Session would pass the ballot by that time.  If it did, the committee would then address the composition of appropriate language at the next legislative session.  If it did not pass the ballot, the language would continue as written and sunset.

 

Madelyn Shipman, an Assistant District Attorney for Washoe County, had worked with Assemblyman Hettrick to minimize the impact to Washoe County, given its assessment process with respect to Lake Tahoe properties.  She believed the point should be clarified that the cap was for a two-year period but would affect only one tax year, the 2002 through 2003 tax year.  Washoe County’s 5-year assessment would not take place until the following tax year.  After allowing that postponements ultimately increased taxable values, she confirmed she supported the bill as long as the language was not changed.

 

Mr. Neighbors asked if most counties “factored up” each year based on comparable sales.

 

Ms. Shipman confirmed that Washoe County did so in the Tahoe Basin on an annual basis to minimize the ramifications of the 5-year reappraisal.

 

Barbara Byington, the Douglas County Assessor, stated they had worked very hard to get the language in shape and it was acceptable to her.  Ms. Byington advised there was one problem in Douglas County with the 5-year appraisal of the Upper Kingsbury area.  Nevertheless, the actions set in motion by A.B. 668 would be a definite improvement over the existing situation.

 

Mr. Anderson inquired what the dollar loss was going to be in Washoe County due to the short delay and what the similarity to Douglas County was in terms of anticipated tax revenue.

 

Ms. Shipman reminded the committee that a 6 percent increase was provided for in the bill.  Some areas had been increasing as a rate as low as 1 percent, while others were increasing by as much as 15 percent annually.  She assured the committee that the 6 percent increase was within a very acceptable range.

 

Assemblyman Hettrick informed the committee he had contacted the Legal and Research Divisions of the Legislative Counsel Bureau (LCB).  The Tahoe Basin had averaged a 5.6 percent increase over the last 10 years.  The 6 percent increase should not have a negative impact overall.  Assemblyman Hettrick stated one goal was to get away from spikes created by the sales of properties on adjoining land.

 

Mr. Marvel reminded the Assemblyman Hettrick that money would be lost over “the long haul.”  As property taxes rose, taxpayers would be forced to sell to a non-taxable entity and thereafter fall off the tax rolls.

 

ASSEMBLYMAN MARVEL MOVED FOR AN AMEND AND DO PASS ON A.B. 668.

 

ASSEMBLYMAN ARBERRY SECONDED THE MOTION.

 

THE MOTION WAS PASSED UNANIMOUSLY BY THOSE PRESENT, AS ASSEMBLYMAN BROWER AND ASSEMBLYWOMAN TIFFANY WERE ABSENT.

 

Chairman Goldwater adjourned the meeting at 2:47 p.m.

 

 

 

RESPECTFULLY SUBMITTED:

 

 

 

Cheryl O'Day

Committee Secretary

 

 

APPROVED BY:

 

 

 

                       

Assemblyman David Goldwater, Chairman

 

 

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