Guinn clarifies stance on taxes after tussle with Democrats

Wednesday, April 7, 1999 | 11:18 a.m.

CARSON CITY -- After a skirmish with Assembly Democrats last week, Gov. Kenny Guinn backed off slightly Tuesday from his promise to veto new taxes and fees.

In a letter to the Legislature, Guinn outlined "guidelines" on types of higher fees and taxes that won't be subject to automatic vetoes.

Democrats viewed Guinn's letter as offering an olive branch, and they were quick to embrace it.

Assistant Majority Leader Barbara Buckley, D-Las Vegas, said the message from the governor was that he does not want to enact any unnecessary fees. "That's been the Assembly's position all along."

Guinn's statement will clarify his stance because his prior statements have been inconsistent, Buckley said.

Guinn's chief of staff, Pete Ernaut, said this was not a retreat on new taxes or fees. The letter provided guidelines to lawmakers who asked for them. "This spells what's in and what's out," he said.

"Some of the legislators wanted to find out exactly where he (Guinn) stood, and he sent it to them," Ernaut said.

The governor said:

"Bills that would not automatically be subject to veto as a fee or tax increase would include voluntary fees (for example, for a special license plate); fees supported by a group subject to the fee; fees or taxes that have been previously approved by the state Legislature and are included in the state budget; or local fees or taxes that have been approved by the people or their representatives.

"In addition, a fee that is actually a penalty for breaking a law would not be subject to veto as a fee increase."

These are only guidelines, Guinn said, adding that "there may be taxes or fees whose pertinence in a particular category may not be readily apparent." If lawmakers are in doubt, Guinn told them to contact his staff.

On April 2, Guinn vetoed Assembly Bill 105, to allow the state Real Estate Commission to impose a $50 fee for educational courses for training in time share sales. The industry supported the bill, and there was no opposition.

But in his veto message Guinn said, "I will not approve new taxes that inure to the benefit of the general fund or support the general government of the state."

Assembly Democrats quickly pointed out there were increased fees by agencies in the Guinn budget. If those were not approved, the budget would not be balanced. Ernaut said there were "very few" of the higher fees in the budget.

Guinn and the Democrats exchanged salvos over taxes, the college scholarship program and the numerous corrections the administration is submitting to the budget.

Guinn met Friday afternoon with Assembly Majority Leader Richard Perkins, D-Henderson, and Buckley. Perkins said it was a good meeting but declined to elaborate on what was discussed.

The bill vetoed by Guinn came before the Assembly on Tuesday for possible override, but Buckley urged the body to uphold the governor's veto.

The bill was requested during the administration of Gov. Bob Miller, and Buckley said the Guinn administration had "merely overlooked it" as it moved through the Legislative process.

Buckley said she would have preferred that the lawmakers had not spent the time on the bill, but she added that the veto should be upheld because Guinn doesn't want the measure.

After the 41-0 vote to sustain the veto, Buckley said, "We were concerned about his exact position. We certainly don't want to enact any unnecessary fees, and I think his message shows that's his position as well.

"If a fee is necessary, he wants the case to be made and only if it is truly necessary will it be considered," she said. "So that's been the Assembly's position all along. So we're pleased to get some clarification."

"We were concerned his position was inconsistent," she said. "He said some fees were OK and some were not. We have had some discussions that have cleared the air. He (Guinn) has apologized for his administration seeking the fee (real estate) increase.

"So we respected that apology and did not override the veto," she said.