New tax prompts need for clearer statement

Erin Neff

Friday, Aug. 15, 2003 | 9:49 a.m.

Two Republican lawmakers told the Nevada Tax Commission that it was simply the last-minute rush that created any question about whether casinos and other businesses are required to pay the 2 percent financial institutions tax.

Sen. Randolph Townsend, R-Reno, and Assemblyman John Marvel, R-Battle Mountain, each said the Legislature did not intend to include businesses that are not strictly financial institutions.

A 0.7 percent tax on business payroll was also approved by the Legislature, and it is that tax lawmakers intended casinos and nonbanking businesses to pay, Townsend told the commission which was meeting in Carson City.

"At no time were casinos meant to be included as financial institutions," Townsend said.

Marvel, who cast the deciding vote on the tax bill in the Assembly, said that he could understand the confusion since no hearing had been conducted on the proposal during the last day of the second special session.

"It was difficult for me to determine the intent," Marvel said.

Marvel said he assumed the Legislature would clarify its intent in future sessions.

The Tax Commission received proposals Thursday to clarify the definitions used in the tax bill.

The definition of a company that extends credit -- a definition that some believed included gaming companies -- was proposed to mean activity that generates on an annual basis a specific percentage of net operating revenue.

The commission also heard testimony Thursday from two business lobbyists who expressed concerns about how businesses can deduct the cost of health benefits from their payroll taxes.

Tax commission workshops continue next week with meetings Tuesday and Thursday. The Tax Commission's next meeting is set for Sept. 8-9.