Las Vegas fights a pair of tax-diverting measures

Diana Sahagun

Thursday, April 5, 2001 | 10:52 a.m.

Las Vegas City Council members showed their opposition to two bills in the Legislature that would divert tax revenue from the city's coffers to help pay for teachers' salaries and to subsidize other jurisdictions.

The council adopted a resolution that opposes Assembly Bill 457, nicknamed the "rob Peter to pay Paul" bill, which would take money from the city to help fund teacher salaries.

According to the resolution, adequate financing of public education is important but not to the detriment of other areas of importance. The resolution urges the Legislature to explore other funding options for public education.

Local government officials have been pushing hard in Carson City against AB457 -- a measure that would take the percentage of the motor vehicle privilege tax currently given to local governments and use it to fund a 2 percent cost-of-living increase for teachers in each of two years.

AB457, sponsored by Bob Beers, R-Las Vegas, and David Goldwater, D-Las Vegas, also specifies that local governments can make up for the losses by raising property taxes. Local governments within Clark County estimate the loss of revenue at $64 million by the second year of the proposal.

Beers has said he thought most local governments could recoup the losses by looking internally at cost-saving methods.

Earlier in the meeting, the council discussed a similar bill, Assembly Bill 653, which changes the distribution formula of the consolidated tax. Mayor Oscar Goodman directed City Attorney Brad Jerbic to prepare a similar resolution, opposing the bill.

The bill would benefit smaller jurisdictions such as Henderson and Mesquite. If the bill were passed, it is estimated Las Vegas and Clark County would have to provide $2 million each to Henderson.

"From my perspective, the last two bills are bills for us to die for," Goodman said. "Whatever it takes, whose ever face we have to put our face into, whatever we have to do to stop it -- I'm directing us to do it."

Councilman Larry Brown hinted that if the legislation were to be passed and would have an adverse affect on the city, possible litigation could ensue.

"The latter bill ... basically is going to take the city of Las Vegas tax revenue and subsidize the city of Henderson," Brown said. "I think it is imperative to this council and our constituents to let our representatives know that that's inequitable, it's just flat out not fair -- for a city to come to us and say you need to subsidize."

Jerbic said if the bill passes without a compromise the city could take legal recourse.

"The city has certain financial obligations ... we will seriously look at it if there is legislation that has impeded our ability to meet our contractual obligations."

City Councilwoman Lynette Boggs McDonald said because Henderson has political clout in Carson City, the representatives are trying to use it to their advantage.

"This is really one issue where a lot of political gamesmanship is occurring in Carson City and this is one of the times we will have to use the bully pulpit of the mayor's office to really oppose this issue, to work this issue through the Legislature," she said.