Tax task force grilled over projected deficit, new taxes

Erin Neff

Wednesday, Feb. 5, 2003 | 9:04 a.m.

Those who studied the state's tax structure for more than a year began making their case Tuesday to lawmakers, who now have 118 days to figure out how to solve the state's pending deficit.

But not all lawmakers agreed with the case for the deficit presented by Guy Hobbs, chairman of the Nevada Task Force on Tax Policy.

Sen. Ann O'Connell, R-Las Vegas, questioned the $706 million deficit outlined by the task force for the next two years and the cumulative $1.4 billion deficit looming.

"I don't think they made the case," O'Connell said.

Sen. Joe Neal, D-North Las Vegas, grilled Hobbs and economist Jeremy Aguero about gaming revenues, sales tax paid by tourists and other topics related to his perennial push to raise the state's gross gaming tax.

At the end of the hearing, Neal asked whether the joint taxation committees could get a copy of salary increases of casino executives in light of the downturn in gaming revenues to the state.

"Can they afford to pay their executives more?" Neal asked.

After the hearing, Mike Sloan, an executive with Mandalay Resort Group and a member of the Task Force on Tax Policy, said casino companies would not balk at such a request if the salaries for business executives with Bank of America and Wal-Mart were also made available.

"We do pay a gross tax, so our salaries are irrelevant, as is Joe," Sloan added.

Sen. Mike McGinness, R-Fallon, who chaired the joint hearing, said he thought the case had been made for Nevada's deficit.

The committee will meet again Thursday to determine ways to raise revenue to fill the deficit.

Gaming supports a gross receipts tax on businesses, applied at one quarter of 1 percent on all receipts over $450,000. The business community opposes the tax. The gaming industry said it would agree to a quarter percent increase in the gross gaming tax if the gross receipts tax were instituted.

Other taxes earmarked in Gov. Kenny Guinn's $1 billion proposal are increases to the cigarette and liquor taxes, a tripling of the business activities tax and a new levy on amusements and entertainment.

The proposal also includes raising the state's portion of property tax and raising secretary of state fees and taxes on slot route operators.