Task force’s tax plan put into bill

Erin Neff

Wednesday, March 12, 2003 | 9:57 a.m.

CARSON CITY -- The first of what is expected to be half a dozen alternatives to Gov. Kenny Guinn's tax plan was introduced Tuesday.

Nevada Task Force on Tax Policy's Assembly Bill 281 includes the same taxes as those proposed by Guinn, but at different rates and with different implementation times.

The task force, which was created by the Legislature to examine the state's tax structure and to recommend ways to increase tax revenues, met for a year to study the state's fiscal crisis.

The panel, composed of eight volunteers representing the different sectors of the state, gave its recommendations to Guinn as the governor was preparing his budget.

The task force tax proposal introduced Tuesday is identical to what the panel presented to Guinn.

It includes increasing the taxes on cigarettes, liquor, slot route operators, business licenses and property and includes new taxes covering business gross receipts and amusements and admissions.

The task force bill is different from Guinn's bill in several ways.

The governor called for even larger increases for cigarette taxes and for a higher rate for the new amusement tax. The task force proposes increasing the cigarette tax by 35 cents per pack, compared with Guinn's 70 cents per pack.

The task force proposes setting the admissions and amusements tax at a rate of 6.5 percent, compared with Guinn's rate of 7.25 percent. The task force exempts participatory sports and activities but applies the tax to movie and game rentals. Guinn exempts the rentals. Guinn had to set higher rates for those two taxes because he did not include the one quarter of 1 percent tax on gross receipts in fiscal year 2005, as the task force envisions.

Guinn simply asks lawmakers to approve the tax this session for implementation in 2006.

The task force bill raises a host of Secretary of State fees and includes passive revenue generators such as electronic filing of taxes.

The measure was referred to the Assembly Taxation Committee.