Las Vegas Sun

April 24, 2024

Democrats prepare tax bill

CARSON CITY -- Assembly Democrats planned to introduce a tax bill to raise more than $860 million in new revenue as the Nevada Legislature got off to a late start today in its second special session.

Assembly Speaker Richard Perkins, D-Henderson, said the bill would be similar to the one considered in the previous special session, featuring a franchise and a payroll tax.

Assembly Republicans have vowed to derail any tax plan until there are reductions in the budget already approved by the Legislature and signed by Gov. Kenny Guinn.

Guinn had ordered the session to start today at 8 a.m., but only a handful of lawmakers were on hand and business did not start until mid-morning.

Democrats hold a 23 to 19 majority in the Assembly but need 28 votes or a two-thirds majority to pass any new taxes. Perkins said he senses "some sentiment" on the part of a few Republicans to join the Democrats in passing new taxes.

Meanwhile Senate Majority Leader Bill Raggio, R-Reno, said the Senate will pass four bills today -- the same ones approved in the prior special session but which died in the Assembly.

He said votes will be taken on the $1.6 billion aid to schools bill, the bill to continue class size reduction in schools, the measure to increase fees in the secretary of state's office and the plan to turn all casino work-card business over to the state Gaming Control Board, rather than having the counties handle it.

He said he does not see any problem in gaining passage for these measures and then the Senate will start discussion of a tax plan. The Senate will look at a bill that failed in the last special session by two votes that involves payroll and franchise taxes.

There are also scheduled rallies today outside the legislative building, by both pro- and anti-tax groups.

The Progressive Leadership Alliance of Nevada and school officials are scheduled to demonstrate at noon. And then anti-tax groups, most of them coming from Las Vegas, are set to show up at 4 p.m.

It's unclear how long the special session will last.

Assemblyman Bob Beers, R-Las Vegas, said, "Eventually we are going to have to cut the spending plan or a fifth Republican is going to have to vote yes," on a tax plan.

Democrats feel they have four members of the GOP in the Assembly that will go for a tax plan but they need a fifth. Perkins said there hasn't been much conversation during the interim since the last session because lawmakers were scattered all over Nevada.

But he said now that they are in one place, the discussions can begin.

Assembly Majority Leader Barbara Buckley, D-Las Vegas, said the tax plan to be introduced calls for a 0.6 percent tax on the first $21,000 of a worker's wages. She said that would replace the $100 a year tax the business pays on each employee.

And the franchise tax would be based on a sliding scale, depending on the gross income of the business.

She said the school aid bill would be tied to the tax plan -- a maneuver used in an attempt to get GOP votes to send money to education to prepare for the new school year. Republicans say they will vote for the school aid bill but not for the taxes. They are suggesting there be at least $169 million in reductions in the budget.

Buckley said the Assembly would be meeting with the Senate and watching to see what it comes up with.

She said, "We have considered most of these tax proposals before in the 120 day session. So we should be able to see fairly quickly if we can pass out a tax bill or if some people want to continue to play games.

"If they want to continue to play games past the end of the week, the governor will probably send us home again," she said.

The first special session cost about $250,000. This one will cost taxpayers about $50,000 a day.

Buckley was asked about a proposal by Beers to kill the dental school at UNLV and the State College in Henderson. She said: "Those items were considered during the regular session and they lost those votes. They lost over two years ago.

She said the dental school has already hired a dean and the students are in their second year. "It's pretty hard in the middle of a professional school to close it down and tell everybody to go home," said Buckley.

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