MINUTES OF THE
SENATE Committee on Taxation
Seventy-First Session
February 6, 2001
The Senate Committee on Taxationwas called to order by Chairman Mike McGinness, at 2:06 p.m., on Tuesday, February 6, 2001, in Room 2135 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. All exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.
COMMITTEE MEMBERS PRESENT:
Senator Mike McGinness, Chairman
Senator Dean A. Rhoads, Vice Chairman
Senator Randolph J. Townsend
Senator Ann O’Connell
Senator Joseph M. Neal, Jr.
Senator Bob Coffin
Senator Michael Schneider
STAFF MEMBERS PRESENT:
Kevin Welsh, Deputy Fiscal Analyst
Michael J. Chapman, Program Analyst
Rochelle Trotts, Committee Secretary
Senator Mike McGinness opened the hearing with introduction of staff members Kevin Welsh and Rochelle Trotts.
Senator Mike McGinness:
There is a new policy that within 1 day after the hearing, audio and video recordings of meetings can be purchased in Publications [and] Gift Shop in the Legislative Building. The committee minutes, when transcribed, approved and signed by the Chairman, will be available in the Research Library.
The next two meetings will be at 1:30 p.m., Thursday, February 8, in Room 1214 and the following Tuesday, February 13, in Room 4100 as a joint meeting with the Assembly.
The Standing Rules of the Senate Committee on Taxation (Exhibit C) were presented and he informed the committee they are the same rules used in the last session.
SENATOR O’CONNELL MOVED TO ADOPT THE COMMITTEE STANDING RULES.
SENATOR TOWNSEND SECONDED THE MOTION.
THE MOTION CARRIED. (SENATOR RHOADS WAS ABSENT FOR THE VOTE.)
*****
Senator McGinness welcomed Mike Chapman to the committee.
Michael J. Chapman, Program Analyst:
I am here to present the compilation of the 2001 “Local Financial Report Statewide Summary Report” [Exhibit D. Original is on file in the Research Library.].
Senator Neal:
Revenue and expenditure for fiscal year 1998/99 are actual data and the fiscal year 2000/01 are budgeted data.
Mr. Chapman:
For more detail for each fiscal year 1998/99, there is actual data that is compiled within the report of revenues and expenditures. The fiscal year 2000 is estimated data that has been provided by each local entity. For the fiscal year 2001, data is budgeted data. This information comes from the local entities of budget reports submitted to the Fiscal Analysis Division.
Senator Neal:
How is this report used other than the actual data if 2001 data is estimated?
Mr. Chapman:
The information compares what actually happened in 1998/99 with the budgeted data during 2000/01; it is a side-by-side comparison.
Senator Neal:
The report tells us, by the various counties, what they had and what they spent, [and] what they propose to spend in the fiscal year 2000/01. The revenue sources, are they estimated also for the fiscal year 2000/01?
Mr. Chapman:
Correct, the information is estimated revenues for fiscal year 2000 for any particular entity you are interested in, along with the budgeted information for fiscal year 2001, as approved by the various local governments.
Senator Neal:
Do we have anything in the overall report that indicates a summary of the difference between expenditures and revenue totals in the 17 counties?
Mr. Chapman:
Page 1, located in the blue “Counties” tab [Exhibit D], is budgetary data for all funds excluding the proprietary enterprise funds. On the left side of that same schedule you have 4 fiscal years’ reference, 1998 through 2001. The various revenue sources for all counties are on this schedule. On the right side are the expenditures by expense category for the same time frame. On the bottom, for example, fiscal year budget 2001 is approximately $3.8 billion in total resources available to the counties. On page 2 are totals for all the counties for the General Fund by expense.
Senator O’Connell:
Is there any information on the loss of population along with the “Assessed Valuations” [tab] for those counties: Humboldt, Mineral, Pershing, Storey, and White Pine, which are in the negative?
Mr. Chapman:
Look at the “Counties” tab that begins on page 1. The population statistics are not only in total, but also for each county, on the first page for each county. For example, Carson City on page 4, Statistics for “Population,” Full-Time Equivalent Employees [“FTE Employees County”] Assessed Value” are “Combined at Ad Valorem” rates. If interested in a particular county, as far as population trend, you can reference that county.
Senator O’Connell:
Regarding the previous counties I mentioned, in preparing this report, have you noticed these counties have lost population as well as assessed valuation?
Mr. Chapman:
A detailed analysis of that information has not been done, but can be done if you would like. I did notice, when compiling the information for the report, certain counties have been experiencing population declines.
Senator O’Connell:
Is there anything in the report that explains sales tax as it impacts each county?
Mr. Chapman:
No, I do not believe there is.
Senator O’Connell:
Has there been a report done that would give us a comparison, to look at the sales tax distribution and collection along with this report, to have a more complete picture of the counties?
Mr. Chapman:
I have not prepared anything as far as the sales tax is concerned. I can check at the office to see if there has been a compilation of sales tax information.
Senator McGinness:
A sales tax report is available from the Department of Taxation and can be obtained.
Senator O’Connell:
On the S.B. 253 Committee [established via Senate Bill 253 of the Sixty-ninth Session], we are trying to get a financial picture of each county, specifically the counties that are in poor condition and have lost assessed valuation. The sales tax report would be very helpful as we are looking at the different issues that impact financial issues on certain counties.
SENATE BILL 253 OF THE SIXTY-NINTH SESSION: Creates legislative committee to study distribution among local governments of revenue from state and local taxes. (BDR 17-193)
Kevin Welsh, Deputy Fiscal Analyst:
The purpose of the “Revenue Reference Manual” [Exhibit E. Original is on file in the Research Library.] is something to be used in your office, and can be used as a crib sheet of how the revenues work. Additional information has been added and it is handy to help with answering constituent questions.
Senator McGinness:
This manual [Exhibit E] is another tool to help you through the session, and we may have bills come before us that need background information.
Senator Rhoads:
When fiscal notes on bills are questioned, when a bill is received that has a reference to Department of Wildlife [Division of Wildlife], the normal procedure is it gets sent to them. The best way to kill a bill that an agency does not like is to put a big fiscal note on it. When it is returned, do you or your staff look at this [fiscal note] to see if it is reasonable?
Mr. Welsh:
Yes, it is reviewed first by the Department of Administration and the fiscal division looks at it as well. Sometimes we will have the agency analyst look at it.
Senator Neal:
Gaming percentage fees, nonrestrictive slot fees, restricted slot flat fees, casino entertainment taxes — do we have an overall picture of gaming?
Mr. Welsh:
This information would be in the pie chart on page 3 [Exhibit E].
Senator Neal:
The pie chart shows the gaming taxes are 36 percent. Do you have an estimated dollar amount?
Mr. Welsh:
It is not included in the report; however, I can get that information for you.
Senator McGinness:
Senator Coffin indicates, on page 12, from the gaming percentage to the state General Fund for each category, the nonrestricted slot license also gives the dollar amount.
Senator McGinness adjourned the meeting at 2:30 p.m.
RESPECTFULLY SUBMITTED:
Rochelle Trotts,
Committee Secretary
APPROVED BY:
Senator Mike McGinness, Chairman
DATE: