Sales tax reform proposed

Thursday, June 27, 2002 | 9:39 a.m.

CARSON CITY -- A legislative study subcommittee has recommended that the law be changed to require state and local governments to collect sales taxes on items sold by public entities.

Local and state governments, operating such facilities as golf courses and museums that sell goods in competition with private business, don't charge sales tax.

The Legislative Study Subcommittee on Competition between Local Governments and Private Enterprises Wednesday recommended a bill be presented to the 2003 Legislature to change the sales and use tax act.

Carole Vilardo, president of the Nevada Taxpayers Association, said the action was first proposed by former Assemblyman Peter Ernaut of Reno in 1997.

Any bill approved by the Legislature would have to be ratified by the voters.

The study subcommittee, headed by Sen. Mike Schneider, D-Las Vegas, also recommended that the Legislative Commission establish a committee to set up guidelines so that governments don't compete with private industry. It would decide which services should be done by private industry.

The subcommittee agreed to send a letter to Clark County and operators of private child-care centers to keep negotiating to resolve their differences.

Schneider said there have been talks between the competing parties and he wants them to continue.

The panel had heard testimony from private child-care centers in Las Vegas who objected to the expanding government programs for after-school recreation.