Profs seek more taxes for buildings

Wednesday, March 6, 2002 | 9 a.m.

CARSON CITY -- A coalition of university and community college faculty is suggesting the state raise its share of the property tax by 15 cents to avoid cuts in construction, including campus buildings.

In a letter to the Governor's Tax Task Force Tuesday, Candace C. Kant, president of the Nevada Faculty Alliance, recommended that the state double its 15-cent share of the property tax.

Such a raise would mean either that taxes would rise about $52 a year on a $100,000 home or that municipalities would give up the revenue.

The law limits the combined property tax rate to $3.64 per $100 of assessed valuation. Some rural counties already are at that limit.

The Legislature could raise the limit, Kant pointed out.

Guy Hobbs, chairman of the task force, said Tuesday he hadn't seen the letter, but the issue will be considered in future meetings. The next meeting of the tax task force is March 13 in Carson City. The group is due to have its recommendations ready Nov. 15.

The state "bears the major responsibility for furnishing the buildings needed to house the growing student population and the increased faculty to teach them, not to mention major research needs that will contribute to diversification of the state's economy," Kant, a professor at the Community College of Southern Nevada, wrote.

"Not to address this issue as a part of restructuring the tax system of Nevada would be a grave oversight, and we urge you to give this matter serious attention."

The state's 15-cent share currently pays off general obligation bonds the Legislature authorizes every two years for construction projects, both at the university and community colleges and for state buildings.

The 2001 Legislature authorized the sale of $196.4 million in bonds for construction.

In the coming two years, Kant said, the state's property tax share won't be enough to pay additional bond debt. The state's capital construction program might be limited to $20 million to $50 million in the next two years, she suggested.

"The state simply cannot stop building needed facilities for services for its citizens, be those facilities classroom buildings or new DMV buildings," she said.

The state Public Works Board last week notified all agencies they must submit their preliminary construction requests for the next two years by April 26 so an evaluation can be made on the needs.

Board Manager Daniel O'Brien cautioned the agencies there may not be enough funding for major projects in the coming two years.

"We anticipate that a much smaller amount of general obligation bonds will be available to fund the 2003 capital improvement plan than this last biennium and also very little, if any, general fund cash," O'Brien said.