Teachers union files tax petition

Friday, April 7, 2000 | 11:07 a.m.

CARSON CITY -- A petition to impose a net profits tax of 4 percent on Nevada businesses, including the gaming industry, was filed late Friday by the 22,000 member state teachers union.

The Nevada State Education Association says this will bring in an extra $250 million or more each year which would flow into the public schools for a variety of programs and pay raises.

The union had initially talked about exempting the profits casinos make on their gaming revenue. But in the end, the union decided it needed to include the gaming industry to generate the $250 million.

The petition will be circulated at the association's state convention this weekend in Reno. The organization must gather 44,009 signatures of registered votes by November. And it must contain 10 percent of the voters in 13 of the 17 counties.

If successful, the petition would be presented to the 2001 Legislature which must act on it within 40 days. If the lawmakers change or reject the petition, it will go on the November 2002 ballot for the voters to decide.

The 28-page initiative would exempt businesses that make a net profit, after federal taxes, of $50,000 or less. The association estimates that 52 percent of the taxes paid will be on firms headquartered out of state.

If the companies decided to pass the tax on to the consumer, it would mean a family with an income of $50,000 a year would pay an additional $7 in taxes, according to the association.

Gov. Kenny Guinn and the chambers of commerce have already announced their opposition. State Sen. Joe Neal, D-North Las Vegas, is also circulating an initiative petition to raise the tax on the 100 largest casinos in the state by 80 percent.

The teachers union petition says all the money collected must be apportioned to the local school districts on the same formula now in use for state aid to education. The Legislature, according to the initiative, would be prohibited from reducing its support to the public schools.

The money must be used to enhance student learning, provide quality teaching, promote parental involvement and increase student accountability.

According to the Nevada Policy Research Institute, a conservative think tank in Reno, teachers in Nevada made 35.7 percent more than the average worker in 1995. And Nevada teachers earn a full 3 percent higher than the national average wage for teachers.

According to a 1995-96 study by the American Federation of Teachers, Nevada was 12th in the nation in teacher starting pay at $25,576.

Besides permitting the money to be used for teacher salaries, a school district could spend the money on reducing overcrowded classes; increasing help for students with limited English proficiency; equipping classes with computers; promoting vocational and technical training; increasing the number of school nurses, speech pathologists and school counselors and providing more physical education, arts and music programs.

School districts would be able to spend money on workshops for parents to learn how to best help their children succeed in school and to improve literacy and train parents to encourage reading at home.

Money would also be available for summer school and for remedial classes to help students meet academic standards.