Legislator: Offer low-balled

Larry Henry

Tuesday, March 4, 1997 | 11:59 a.m.

CARSON CITY -- The amount of money that casinos and home builders are offering to help pay for growth in Southern Nevada is less than they can afford, according to a key legislator.

"When you say you can give 1 (percent), you can give 2," said Assemblyman Wendell Williams, D-North Las Vegas, chairman of the Education Committee. "That's how negotiations start."

Home builders are the latest industry to offer more money in Clark County for roads, water facilities and schools.

The casino industry last week agreed to contribute $27 million by raising room taxes 1 percent in Clark County and diverting other room tax money that now goes to promote special events.

The Southern Nevada Home Builders Association this week offered to raise $11 million by increasing the tax on real estate transactions, which include the sale of new homes, vacant lots and commercial buildings, said Irene Porter, the association's executive director.

The association also hopes to raise another $10 million by asking local governments to forfeit the money they already receive on real property transfer taxes or to contribute other tax money, such as cigarette or liquor taxes.

The real property transfer tax in Clark County is 65 cents per $500 of property value. Of that, 55 cents goes to local governments for general spending, and 10 cents is used for low-income housing. A bill sponsored by Assemblywoman Barbara Buckley, D-Las Vegas, would allow cities and counties to use the entire 65 cents for affordable housing.

The association plan would raise the real property transfer tax by 60 cents, bringing the level to $1.25.

Some legislators are worried that home builders and casinos are paying a relatively small amount now to avert future increases as Clark County expands at a blistering rate. Experts predict the Las Vegas Valley will require $10 billion into the next century for growth.

"I don't think these will meet the needs," said Assemblywoman Chris Giunchigliani, D-Las Vegas. "It allows the public to have the misperception that we've solved the problem."

Porter said 20 percent of the cost of a house in Southern Nevada is attributed to "taxes, fees and infrastructure." A higher tax rate than the one offered would raise the $128,000 median cost too much, she said.

"There is not a higher figure left," she said. "The only way we've been able to qualify people is because interest rates are so low."

Giunchigliani said the casino and home builder plans offer a "piecemeal solution" that won't solve long-term problems.

"If you get a quick fix, we'll have a Band-Aid approach, and they'll be back," she said.

Sen. Ann O'Connell, R-Las Vegas, said legislators are being presented with tax plans before they know exactly how much money is required.

"We don't need to look at it piecemeal," she said. "I want to see a needs assessment."

Senate Majority Leader Bill Raggio, R-Reno, said lawsuits are pending in some states where taxes benefit schools in only one county, as these plans propose to do for Clark County.

"If you're going to fund education, you have to do it statewide," he said.