Vote on tax shift hits snag
Thursday, April 19, 2001 | 11:03 a.m.
CARSON CITY -- Assembly Speaker Richard Perkins strode into Wednesday's floor session confident that his proposed tax shift would easily pass and help his constituents in Henderson.
But a last-minute ethical question blocked a vote on Assembly Bill 653 after about 35 minutes of debate led by opponents of the measure.
Taxation Committee Chairman David Goldwater, D-Las Vegas, fielded many of the questions from fellow Democrats, but he eventually moved to place the bill on the chief clerk's desk -- a destination reserved for measures that need more work or clarification before a vote.
Some believed Wednesday's move was designed to shore up the vote base.
"I don't think he has his Dems in line," said one Republican lawmaker.
Perkins said the ethical question was a valid concern that needed to be researched.
"I don't bring a vote to the floor and not have the support," Perkins said after the session.
Several legislators rose to disclose potential conflicts but announced their intentions to vote on the bill. Perkins works for Henderson Police. John Oceguera, D-Las Vegas, works for the North Las Vegas Fire Department and Kathy McClain, D-Las Vegas, works for Clark County.
A lawyer for the Legislative Counsel Bureau is examining whether the disclosure goes far enough, or whether those lawmakers would have to abstain.
AB653 would change the distribution formula used to disperse consolidated tax revenues in Clark County only. Three years ago, when a new distribution formula was used, the region's fastest-growing cities did not get a fair share of the revenue, supporters say.
Roughly $36 million that should have gone to the fastest-growing cities of Henderson, North Las Vegas and Mesquite was instead diverted elsewhere, with the city of Las Vegas and Clark County receiving $25 million.
Perkins' proposal shifts the base, eliminating a growth stabilization computation method and removing increases in the Consumer Price Index from consideration.
The bill also requires that both the city of Las Vegas and Clark County pay Henderson $2 million each to "partially compensate Henderson for its losses," Goldwater said.
Goldwater also asked for an interim study of the distribution formula because he said Perkins' bill would likely affect Las Vegas and Clark County. Perkins has previously testified that concerns about the formula were not worked out by the local entities during the previous interim.
"This is not a perfect formula, but we cannot let the perfect be the enemy of the good," Goldwater said.
Chris Giunchigliani, D-Las Vegas, opposed the measure. "I don't wish to risk any type of tax increases to those constituents." she said.
Merle Berman, R-Las Vegas, also stated opposition, mentioning a resolution hastily passed just hours before by the Las Vegas City Council. The council rushed a resolution opposing AB653 to provide lobbyists time to give it to lawmakers before the 10:30 a.m. floor session.
The council discussed the resolution at the start of the morning council meeting before any other city business, in order to act on it and fax it to Carson City before the Senate hearing was to begin.
Mayor Oscar Goodman asked that a letter be sent to Perkins and all local officials so they know the city's stance.
"Hopefully they'll do the right thing as far as the city of Las Vegas is concerned," Goodman said.
Kathy Von Tobel, R-Las Vegas, said she would support the measure because her district covers Mesquite, which would benefit under the new change to the formula.
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