Tax department gets $3.1 million

Wednesday, June 25, 2003 | 9:11 a.m.

CARSON CITY -- No tax plan has been approved by the Nevada Legislature yet and none is in sight.

But money already is starting to flow into the state Department of Taxation to prepare it to collect new or increased taxes.

The Legislative Interim Finance Committee Tuesday approved $3.1 million to allow the department to start hiring more staff to handle the tax changes on the horizon.

The Legislature convenes another special session today to try to devise a tax plan after being unsuccessful during the regular and two special sessions.

The 2003 regular session of the Legislature put aside $12.5 million for the fiscal year starting July 1 and $20 million for fiscal 2005 for the department to add more employees and install a new computerized tax collection system.

Chuck Chinnock, director of the department, told the interim committee that he wants to hire 45 new people to "get on the road to tax change."

Senate Majority Leader Bill Raggio, R-Reno, asked why more workers are needed in such areas as cigarette tax collections. The Legislature has indicated it will boost the present tax on a pack of cigarettes, but Raggio wondered why that would require more help to collect the money.

Chinnock said he must hire additional enforcement agents to make sure people are paying the taxes.

Increasing the business license tax will require six additional employees, Chinnock said. He said there will be an additional 10,000 to 12,000 accounts a month to monitor.

The tax department director is setting aside $250,000 for a consultant to guide the department in starting the new computerized tax collection system.

And he wants 16 positions now to begin the work of administering any broad- based business tax that may be enacted. He said that could require anywhere from 15 to 65 employees, depending on what type of tax is approved by the Legislature.

In addition to the new employees, Chinnock said, he will need new office space in Las Vegas and Reno as well as new equipment.

The $32.5 million that was set in reserve will be handled by the Interim Finance Committee. So any time Chinnock needs more money, he will have to convince the lawmakers over the next 18 months to release the funds.