Property tax rebate cut by shortfall

Adrienne Packer

Wednesday, June 20, 2001 | 11:05 a.m.

Clark County administrators' fears that Southern Nevada would take a financial hit from the Legislature's action turned out to be warranted.

On Tuesday, two weeks after the legislative session ended, Clark County commissioners passed along to residents some of the state's revenue shortfalls by cutting a property tax rebate.

Owners of a home worth $100,000 were supposed to receive a 2.75-cent property tax cut -- which amounts to about $10 annually -- because of a reduction of bond debt rates and in the taxes charged for indigent medical care. Instead the board voted unanimously to reduce property taxes about half that amount. The new rate will go into effect July 1.

"It's not real significant to individual homeowners, but in terms of dollars it's over $4 million for the county," Finance Director George Stevens said. "Essentially it will replace revenue we lost to Henderson."

A new consolidated tax formula passed by the Legislature, which takes tax revenue from local governments to provide financial assistance to fast-growing Henderson, will cost the county about $2.5 million a year, Stevens said.

A new law passed during the session also requires the county to hire three new district court judges, to provide space for the magistrates and their assistants and to pay their support staff's salaries. The new judges are expected to cost the county nearly $1 million a year.

The combination of legislative action and the fact the county's growth in sales tax revenues are significantly lower because of a sluggish economy prompted commissioners to take the unusual action Tuesday.

"This is the first time in my nine years on the board that we've ever had to do this," Yvonne Atkinson Gates said. "This was necessary based upon what occurred at the Legislature. The positive thing is at least we had the financial wherewithal to do it and not really affect property owners substantially."

Revenues from the 1 cent per $100,000 home kept by the county will go toward air quality programs, the operation of new parks expected to open in the upcoming year and the county's plan to build 10 new fire stations during the next decade, Steven said.