Sales tax increase for transportation faces opposition

Tuesday, May 28, 2002 | 9:33 a.m.

A proposal to increase Clark County's sales tax by a quarter-percent to fund transportation projects must win the approval of the County Commission -- and at least one commissioner says the proposal could face some opposition.

"With all the uncertainty in the economy right now, I just don't think it's a good time to be talking about raising taxes," Commission Chairman Dario Herrera said. "We should look at whether or not we can meet these transportation goals without raising taxes."

The Regional Transportation Commission board approved a package of tax increases last week that includes $2 billion over the next 25 years in increased sales taxes. Passing the package would raise the county's sales taxes from 7.25 percent to 7.5 percent.

While the Legislature would have the ultimate authority over the proposal next spring, the Clark County Commission would need to put the item on the November ballot for voter approval. It is due to review the proposal on June 4 and must approve the plan by the end of June to get it on the ballot.

Two commissioners solidly back the proposal. Both also serve on the RTC board.

RTC Chairman and County Commissioner Bruce Woodbury has been an ardent supporter of the tax package and of earlier versions floated by the RTC staff. He has started a political action committee and has spoken to more than a dozen groups in support of the proposal.

Commissioner Chip Maxfield, like Woodbury a Republican, has also publicly asked for community support of the tax package.

Commissioner Erin Kenny said she has to take a longer, harder look at the issue before deciding on whether to support the sales-tax increase.

"There's no doubt that the transportation issue is very serious," Kenny said. "The question is: Are we looking at the right combination to fund it?"

Kenny filed last week as a Democratic candidate for lieutenant governor. If elected, she would be a member of the State Transportation Board, which helps set funding priorities for state and federal transportation projects across Nevada.

Other commissioners did not return phone calls.

RTC staff and members of an advisory coalition have reached the same conclusion: Unless billions are found to fund transportation efforts, particularly road building, the regional traffic system is headed for gridlock by 2025.

Herrera said while he is not inclined to pass new taxes, he has not made up his mind on this plan. He said he intends to meet with RTC staff before making a decision.

RTC General Manager Jacob Snow said Herrera's support will be important. He said Herrera has the right concern.

"It's correct to focus on this as an economic issue," Snow said. "If we don't do this, we are going to end up like Los Angeles. If we gridlock the economy of Las Vegas, we are going to run into serious problems.

Snow believes he can persuade Herrera, a former RTC board member, to support the proposal. He agrees that with economic uncertainty and other tax-related issues facing the community, this may not be "an idyllic time" for a sales tax increase.

"I don't think there is a perfect time, but there is a right time to exercise leadership and make sure we maintain the quality of life," he said.

Herrera, however, said he believes more could be done in Washington to fund local transportation and transit programs. Herrera, who is running for the new congressional seat in the Las Vegas Valley, said his concern is not motivated by politics but by his constituents, who have expressed similar concerns.

Herrera's doubts are not the only ones that have surfaced in the last few weeks.

Among those who have expressed concerns about the proposal are members of the Governor's Task Force on Tax Policy, which is considering recrafting the state's tax structure to bring more money to education and health care.

Carole Vilardo, a task force member and president of the Nevada Taxpayers Association, said the Legislature may broaden the sales tax base, potentially reaping more money for RTC coffers, and adjust the gasoline tax to account for inflation, which also could bring in more money for the RTC.

The gasoline tax inflation adjustment was a proposal that was initially floated by the RTC, but rejected because of community concerns about high gas prices.

"Right now, there are an awfully lot of things up in the air," Vilardo said. "Obviously, I think there needs to be a willingness to adjust their proposal."

Woodbury, a key campaigner for the RTC tax proposal, has said the agency and supporters would be willing to adjust their proposal. But the timing of the issue makes it difficult for backers.

The task force will not release its report until two weeks after the November election, and the Legislature will not convene until February. The Legislature, however, could take into account any tax-law changes when and if it makes a final determination of funding for local transportation needs.