Assembly revives impact fees bill

Friday, May 21, 1999 | 11:47 a.m.

CARSON CITY -- In an about-face, the Assembly Thursday revived a bill to allow Las Vegas to charge impact fees on new homes to finance fire stations and parks.

Assembly Bill 457 had been defeated Wednesday by a 14-27 vote. But without debate, the Assembly Thursday accepted the motion of Assemblyman Tom Collins, D-North Las Vegas, to bring the bill back to life.

Collins said he thought many of the members were not fully briefed on the bill.

The Wednesday loss came on the heels of the preliminary vote by the Las Vegas City Council to increase the property tax by 2 percent to develop more parks. Lobbyists for Las Vegas said the timing hurt chances of passage.

Some lawmakers said they didn't want to allow a double whammy for the taxpayer -- a property tax increase topped by impact fees.

The initial vote also involved political maneuvering. All 14 Republicans voted against the bill. Some Democrat leaders, not wanting the party to be painted as pro-tax, joined the Republicans.

Shortly before the vote to reconsider its action Thursday, GOP Assembly members caucused and agreed to allow the bill to be reconsidered. But there is no commitment to vote in favor of the bill.

The measure was placed on the desk of the Assembly secretary, and it gives Las Vegas lobbyists until midnight tonight to round up the votes for passage.

Dan Musgrove, a lobbyist for the city, said there may have been a misconception on the part of Assembly members who voted against the bill.

Impact fees put the burden on those responsible for growth, rather than on all the taxpayers of the city. A new development should pay for itself, rather than requiring the other residents to chip in, he said.

"In 1997, the city cut property tax rates by 9 percent," he said. "In raising property taxes in 1999 by 2 percent, the city is still 7 percent below the level it was in 1996."

Using the money from the increased property tax, the city could sell bonds for $20 million to $25 millions to purchase park lands.

Marvin Leavitt, a lobbyist for Las Vegas, said in many cases the developer puts in the streets, water and sewer hookups. And in some cases, parks are included. But developers don't build fire stations.

The impact fee is a one-time payment, and can't be used for on-going operations.

The present law permits local governments to impose impact fees for such things as roads, water, sewer and drainage facilities. So far Las Vegas has never taken advantage of the law. Reno is one of the few local governments in the state that levies impact fees.

Assemblywoman Sandra Tiffany, R-Henderson, said about $20,000 is added to the cost of a new home because of taxes and fees. She led the opposition.