Compromise in Henderson tax fight fails

Monday, May 21, 2001 | 11:17 a.m.

CARSON CITY -- Clark County, Las Vegas and Henderson were still at odds today in the battle over the distribution of more than $600 million in tax revenue.

The three failed to reach an agreement on how the tax division should be changed. And Henderson was left with the short-end of the stick, temporarily.

The Senate Taxation Committee approved Assembly Bill 653, to change the distribution formula. But it left out the $4 million new base money that Henderson wanted to be immediately shifted to its treasury.

Sen. Joe Neal, D-North Las Vegas, said this bill would be fought out in a conference committee between the Senate and Assembly eventually. The Assembly had included the $4 million for Henderson.

Las Vegas Mayor Oscar Goodman said after the meeting, "It's out of our hands." He said he was not happy that a compromise could not be reached.

Henderson Mayor Jim Gibson also said he was disappointed a compromise could not be reached between the three large local governments.

The issue is where the $4 million for Henderson will come from. Gibson said an agreement was reached that Las Vegas would come up with $1 million. And Clark County has agreed to match the Las Vegas contribution dollar for dollar.

That provides only $2 million. Goodman said the $1 million is "as far as we go." He said any time somebody starts tinkering with one part of the distribution formula, other parts are affected.

Mike Alastuey, assistant manager for Clark County, said there was general agreement on changing parts of the formula, but there also was no consensus on other parts. If Las Vegas agreed to $1 million, that would mean Clark County would have to put up the other $3 million that he said would be an "undue burden" on the county.

The bill approved in the Assembly called for half to come from Las Vegas and half from Clark County.

Gibson said there was an agreement between Las Vegas and Henderson, but "we lost the county."

Gibson said, "People have staked out their maximum and minimum position."

Sen. Bob Coffin, D-Las Vegas, said this resembles a "north-south" fight that pitted Clark County against northern counties in the so-called "Fair Share" battle in the early 1990s. The difference, he said, is it is in "our county."

Gibson said there is a parallel. The new formula for distributing such money as the local sales tax, cigarette taxes and other revenues was devised in 1997. And Henderson, he said lost $24 million because of inequities.

The formula, he said, "penalized growth -- in the terms of the flow of revenue." He said he was not suggesting the whole formula be tossed out. In the new formula, Gibson said the city recovers over time but "we never recover the $24 million we lost under the other formula."

The bill will now go to the floor of the Senate for a vote. If approved, it returns to the Assembly for agreement on the Senate's version. If that fails, there is a conference committee.

Gibson said "our only hope" is that the Assembly side of the conference committee will be appointed by Speaker Richard Perkins, D-Henderson.