Tax inequities and road repair money top tax study priorities

Thursday, Oct. 7, 1999 | 12:14 p.m.

The committee headed by Sen. Ann O'Connell, R-Las Vegas, hopes to recommend repairs to the existing property and fuel tax rules during the next session of the Nevada Legislature.

O'Connell said the most pressing problems are inequities caused by depreciation of real property and skyrocketing values in areas such as Incline Village.

Depreciation reduces the value of a house or business structure by 1 1/2 percent a year. Las Vegas governmental tax expert Marv Leavitt said that has become a serious problem for many of Nevada's counties which have relatively slow growth and numerous old houses.

"You can have two houses next to each other, one built last year and the other built 50 years ago that are very similar in value but very different in taxes," said Leavitt.

The committee will also take up the difficult issue of splitting up gasoline tax money that pays for local road repairs.

"The goal is to develop a formula which fairly distributes the money according to need," said Leavitt.

The first step, according to O'Connell, will be to get the counties and Nevada Department of Transportation to complete an accurate inventory of the city- and county-maintained roads in each county.

Assemblyman David Goldwater, D-Las Vegas, vice chairman of the study committee, said the group also needs to consider a statewide policy on permissible uses of room tax revenues and consistency among the counties in how those room taxes are applied.

The committee will also look into existing tax exemptions, the effect of initiative petitions on taxation policy and whether the personal property tax should be changed or abolished.

And Sen. Joe Neal, D-North Las Vegas, served notice that he intends to make sure the committee considers whether the casino industry is paying its fair share.