Assembly approves shift in tax distribution

Erin Neff

Wednesday, April 25, 2001 | 11:07 a.m.

CARSON CITY -- After a week of caucuses, meetings with mayors and financial reporting, the Assembly passed a controversial bill Tuesday that would shift the tax distribution rate in Clark County.

Several lawmakers on April 18 expressed concern over Assembly Bill 653 -- a tax-base shift sponsored by Assembly Speaker Richard Perkins, D-Henderson.

But no one spoke on either side of the issue Tuesday as the measure cleared the Assembly 28-11, with three absent.

The bill is a win for Henderson, North Las Vegas and Mesquite, because the shift rewards cities that are growing at the fastest rates. The change would divert revenues from slower-growth areas, such as Las Vegas and Clark County.

Local government officials, who are currently in the process of drafting budgets for the coming fiscal year, are tracking the progress of Perkins' bill and are poised to make cuts to their respective plans, if necessary.

On Monday local government representatives met in an attempt to develop a compromise, even as Las Vegas Mayor Oscar Goodman continued to lobby Perkins to amend the bill.

Henderson officials argue that the bill is direly needed to change future revenue distribution; the city has lost roughly $35 million in money over the past three years due to a change in the formula in 1997.

Local government lobbyists have been waiting since last Wednesday for the bill to emerge from the chief clerk's desk. The measure wound up there under the guise that a legal opinion was needed to clarify whether certain lawmakers were eligible to vote on the bill.

As originally suspected, lawmakers who either work for one of the local governments or have a family member who does were eligible to vote.

Perkins has spent the past week dispersing information to soothe concerns of some of his fellow Democrats who have been heavily lobbied by the city of Las Vegas.

Those voting against the bill were: Sharron Angle, R-Reno; Morse Arberry Jr., D-Las Vegas; Doug Bache, D-Las Vegas; Bob Beers, R-Las Vegas; Barbara Cegavske, R-Las Vegas; Jerry Claborn, D-Las Vegas; Tom Collins, D-North Las Vegas; Chris Giunchigliani, D-Las Vegas; Don Gustavson, R-Sun Valley; John Marvel, R-Battle Mountain and Wendell Williams, D-Las Vegas.

The bill is now referred to the Senate.

Another measure local governments are watching closely is slated to be amended on the floor of the Assembly today.

AB457, sponsored by Beers and David Goldwater, D-Las Vegas, would shift the portion of the motor vehicle privilege tax currently dispersed to local governments.

That money would be diverted to the school districts under the plan to fund a 2 percent salary raise for teachers in each of the two years.

Clark County governments estimate they will lose $65 million in revenue over the next two years if the measure is implemented.

The amendment would place a two-year sunset provision on the bill and would exclude Elko County.