Experts tell lawmakers of varying effects of tax plan

Friday, Feb. 7, 2003 | 10:16 a.m.

Economist Jeremy Aguero told lawmakers the task force's proposal would have varying effects on the model families and businesses he used in his study.

A family of three with one smoker who lives in a home valued at $180,000 would pay an additional $297 in tax each year under the task force's proposal. That covers a pack a day of cigarettes, two movies a month and three events like concerts a year.

A family of three without a smoker would pay $169 a year given the same other circumstances.

Aguero also modeled two Clark County businesses, which were not named, to determine the impact of the proposal, including the gross receipts tax.

A business with 3.5 full-time equivalent employees grossing $1.1 million would pay $1,525 in gross receipts taxes after a tax credit for the business license tax. The total tax bill, including hikes in property tax and other increases would cost business $2,132.

A business with 30 full-time equivalent employees grossing $2.1 million would pay $1,375 in gross receipts taxes after the tax credit is applied. That business would have a total new tax bill of $6,287.

The governor's office has also determined impacts to average families based on Gov. Kenny Guinn's slightly different tax proposal.

A family of three with a smoker would pay $432.21.

A non-smoking family would pay $176 in new taxes each year.

"I don't think that is exorbitant," said Guinn's Chief of Staff Marybel Batjer. "Earlier reports that it would cost the average family $800 are inaccurate."

Property tax on a $180,000 home under the governor's plan would cost $95 more a year. Smoking a pack a day would mean an additional $255 a year.

Two six-packs of beer a week would cost an additional $4.68.

A family of three attending two movies a month would pay $44.67 more each year under the governor's amusement tax. If the family also went to three concerts a year, it would cost an additional $32.80.

The liquor tax would raise the cost of a six-pack of beer 4.5 cents and would increase a bottle of wine 15 cents, according to both the task force's and governor's proposals.