MINUTES OF THE
SENATE Committee on Taxation
Seventy-second Session
February 4, 2003
The Senate Committee on Taxationwas called to order by Chairman Mike McGinness, at 1:30 p.m., on Tuesday, February 4, 2003, 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 Sandra Tiffany
Senator Joseph Neal
Senator Bob Coffin
STAFF MEMBERS PRESENT:
Rick Combs, Deputy Fiscal Analyst
Mavis Scarff, Committee Manager
Ardyss Johns, Committee Secretary
Gale Maynard, Committee Secretary
If everyone has looked at the committee standing rules (Exhibit C), I will entertain a motion for adoption. These are the same rules we have approved for the last few sessions.
SENATOR COFFIN MOVED TO ADOPT THE STANDING RULES OF THE SENATE COMMITTEE ON TAXATION.
SENATOR O’CONNELL SECONDED THE MOTION.
THE MOTION CARRIED UNANIMOUSLY.
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Chairman McGinness:
The next item of discussion will be the overview of committee resources. Rick Combs, who is our Deputy Fiscal Analyst, knows the nuts and bolts and he is going to tell us what we can expect from him this session.
Rick Combs, Deputy Fiscal Analyst:
I just want to go through some of the items we have prepared for you to use during this session as your resources. Most, if not all of you, have served on taxation in one House or the other. The Reference Revenue Manual (Exhibit D. Original is on file in the Research Library.) is a publication located in your blue binder. It is updated biennially, and includes corrections that are the result of legislation from the previous session, so all the information in there has been updated.
There are a couple of items I want to point out to you which are new to the manual and have not been introduced before. On pages 5 through 11 are tables of the General Fund revenues. Normally, we would use the pie charts on pages 3 and 4, but if you will notice, going through this interim, it makes sense for the revenue committee to have some idea of the details of revenues generated. The tables on pages 5 through 11 are for your review of the General Fund resources through fiscal year 2002 in actual numbers. Also new to the reference manual, starting on about page 95, is a list of sales tax exemptions, which we identified by pulling them out of statute and summarized them for the sales taxes. On page 101 are the property tax exemptions. There are not many changes except the updated items on the various revenue sources included in the rest of the reference manual.
Senator Coffin:
I appreciate what Rick has done here and perhaps Ted Zuend, Deputy Fiscal Analyst, may have been working with him on this quick numbers supplement we have received. I had asked for one additional tax calculation to be given to us that did not make it here yet. I discussed this with Ted a couple of weeks ago and requested a calculation on the amount of money to be generated from taxes on services. This will not be easy to calculate, but I would like to have the research moving forward as fast as possible.
Chairman McGinness:
I believe the document is in your folder, ”Revenue Generated from Increase in Rates of Selected Taxes” (Exhibit E). Those are the current statutory taxes, and any new tax would not be in there. Rick, would you care to elaborate on this?
Mr. Combs:
At this point, the only new tax on this list is at the bottom of the page, and looking at this document it is a slot route operator revenue tax of 1 percent. This is currently not in statute and the reason it is included on this list is we have received requests for it from a number of sources in the Legislature.
Senator Coffin:
I have a request in. I just want to make sure it is still moving forward. It may not be in the Governor’s proposal, but it is something that might be useful to have.
Mr. Combs:
There are three of us in the Fiscal Analysis Division who are working on taxes. You will probably work with all three of us during the session. Ted Zuend, who has been around for many years, and Russell Guindon, Deputy Fiscal Analyst, will also be helping with projections and forecasts. We are receiving numerous requests for new ideas for revenue sources and amounts certain types of revenues would generate. We are working on anything that has been given to us and keeping a list of these requests. In most cases, it requires a tremendous amount of research and we will be working to get the numbers back early in the Session. Obviously, it would not do any good if they were given back too late.
If you have any questions about taxes you want us to look into, we will do this. There are certain questions, such as taxes in New Mexico or similar questions, I want you to know the Research Division is also available for things like this as well and the turnaround time might be a little better for these types of tax questions. Our main focus has to be on the new revenue generators, projections, and how these kinds of taxes would be administered and implemented, along with working with the various revenue agencies in State government to get these numbers.
Chairman McGinness:
Rick, this form Senator Coffin has referred to, when this information becomes available, if you could add it to “Revenue Generated from Increase in Rates of Selected Taxes,” it would help everyone.
Senator Rhoads:
Rick, I thought any non-gaming merchandise sold in a casino would be subject to gross receipts tax. Where is the figure? Is it listed anywhere?
Mr. Combs:
What I would like to point out, Senator Rhoads, is this is not the Governor’s task force proposal, this is just current revenue. We have added one example that was asked for by a number of legislators. This is a four-page document. The first page basically gives you an idea of what a certain increase in a certain tax would generate in terms of revenue. It can be multiplied at whatever rate you might want to consider for those types of taxes.
On pages 3 and 4 is a separate chart providing the same information, but it also includes the current rate and how much the current rate generated in the final fiscal year we have actual collections for, which is fiscal year 2002. Together, the first page just shows increases, pages 2 through 4 are basically informational about the current tax, its current rate, how much it currently generates, and then, what additional increases would be generated.
Senator Neal:
I was getting confused after looking at the first page of this document until you explained it. On the second page, you were explaining what the present tax in place and in statute generates in terms of the money. On the bottom, you put down in black what is proposed. In other words, if you added 0.25 percent to the current gain in percentage fee, that would generate $21.8 million, correct?
Mr. Combs:
That is correct. The amount we put in for the rate of increase has no bearing on anything; it is just a number we thought could be easily multiplied if you wanted to come up with your own number.
Senator Neal:
I just needed to make sure I understood. Thank you.
Chairman McGinness:
It is now 1:50 p.m., and if there are no further questions or comments, we will adjourn this meeting.
RESPECTFULLY SUBMITTED:
Gale Maynard,
Committee Secretary
APPROVED BY:
Senator Mike McGinness, Chairman
DATE: