Tax-shift bill is withdrawn

Tuesday, May 29, 2001 | 10:17 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- After meeting stiff resistance, Las Vegas assemblymen David Goldwater and Bob Beers have given up their efforts to shift money from local governments to public schools.

Goldwater, a Democrat, and Beers, a Republican, said Monday they have asked that Assembly Bill 457 be withdrawn. The measure would have sent money from the motor vehicle privilege tax to fund education.

The bill was in the Assembly Ways and Means Committee. The two said they have determined that the current proposal from Sen. Mark James, R-Las Vegas, was a legitimate alternative to find money to fund raises for school teachers.

The James bill increases transaction fees charged by the Secretary of State on such things as mergers, lists of officers and changes in corporations. It is expected to raise about $30 million over the biennium.

Coupled with the James Bill is legislation by Assemblyman David Parks, D-Las Vegas, to take back $14 million a year going to auto rental firms. The companies collect a 6 percent fee on each rental and keep 4 percent of that. That money would now be returned to the state.

The Goldwater-Beers bill would cost Clark County governments $65 million over the biennium. Washoe County would lose $9 million.

The two Las Vegas assemblymen said, "In an effort to focus discussion on that proposal, all parties involved suggested that we withdraw AB457 so that it is not a distraction from the important proposal before us."

They said they have held "extensive discussions with local officials and representatives from local employees groups."

The bill passed out of Goldwater's Taxation Committee with only one vote. But it is stuck in the Ways and Means Committee.