A look at the Senate, Assembly plans

Saturday, July 12, 2003 | 3:38 a.m.

WEEKEND EDITION: July 13, 2003

With the Supreme Court's decision waiving the constitutional requirement that two-thirds of all lawmakers vote to approve a tax increase, both houses of the Legislature are expected to pass a tax plan to fund the state budget.

The Legislature reconvenes this week with the Assembly meeting today and the Senate meeting Monday. Lawmakers are expected to consider a plan the Senate passed last month. The plan includes the following provisions:

The total two-year revenue from the package is expected to generate more than $860 million. The payroll tax accounts for half that amount.

The Senate voted 15-5 with one person not voting to pass a tax plan, gaining the two-thirds majority by a vote.

Those voting against the plan were Republicans Barbara Cegavske, Sandra Tiffany and Maurice Washington, and Democrats Maggie Carlton and Valerie Wiener. Ann O'Connell, R-Las Vegas, did not vote.

The Assembly has a plan with some similarities, but was not able to get the two-thirds vote to pass it.

The Assembly voted 27-15 to pass a tax plan late last month, failing to get a two-thirds majority by one vote.

Those voting against the plan were: Walter Andonov, Sharron Angle, Bob Beers, David Brown, John C. Carpenter, Chad Christensen, Pete Goicoechea, Tom Grady, Don Gustavson, Lynn Hettrick, Ron Knecht, Garn Mabey, John Marvel, Rod Sherer and Valerie Weber. They are all Republicans.

The Assembly's version of the plan includes the same business license fee, entertainment tax and gaming tax increases. The Assembly plan differs by including a franchise fee, a form of a gross receipts tax, and cuts the payroll tax at 0.6 percent.

The Assembly's franchise fee would tax business gross receipts of more than $100,000 and would be on a tiered scale, starting at $30 a quarter and ranging to $7,000 a quarter for receipts of $20 million with an additional $3,500 for every $10 million over that.

The Assembly plan has a cigarette taxes increase of 45 cents a pack in 2004 and 55 cents in 2005. The liquor tax increase would be 75 percent.

The real estate transfer fee in the Assembly plan would be $1.30 per $500 of valuation.

Lawmakers note that the plans will likely change during the coming debate, because the Senate and Assembly will have to agree on the final plan.

Since the debate started in the 2001 Legislature, there have been several other tax plans discussed. One gross receipts plan that was popular earlier in the legislative session called for taxes on receipts of more than $450,000.

One plan calls for a tax on professional services, such as attorneys, architects and engineers. Another plan calls for a tax on a business' net profits.

There have also been a number of proposals to change the secretary of state's fees, slot fees and other more minor taxes.