Bill draft would cut tax on motor vehicles

Erin Neff

Thursday, March 13, 2003 | 11:07 a.m.

CARSON CITY -- Assemblyman David Goldwater wants to give car owners a huge break on the motor vehicle privilege tax and make up the lost revenue by increasing taxes on tourists and removing some tax exemptions.

Goldwater, D-Las Vegas, has requested a bill draft to cut in half the current tax paid each year when car owners register their vehicles. To compensate he is looking at raising the room and gaming taxes and may remove several tax exemptions.

"One of the ironic things in a session where you raise taxes is that you also have the opportunity to fix structural problems in the tax base," Goldwater said this morning. "This would give ordinary working folks and even businesses that own vehicles a break and yet fix a structural deficit."

His plan is revenue neutral, meaning the taxes he raises would make up for the cut in the motor vehicle tax but not raise extra revenue.

"It gives me a great deal more comfort supporting a broad-based business tax if we are able to offer a break to average people and to a lot of businesses," said Goldwater, chairman of the Commerce and Labor Committee.

Nevada Taxpayer Association President Carole Vilardo said she could not comment on the details of Goldwater's proposal without seeing the numbers and the bill itself.

However, she said her organization would look favorably at a reduction in the motor vehicle privilege tax.

"I get as many calls from somebody registering a vehicle for the first time or buying a motor home as I do when a property tax increase is being considered," Vilardo said. Goldwater, former chairman of the Taxation Committee, said many Nevadans object to the motor vehicle privilege tax. That tax is based on the value of the vehicle.

"The most frequent complaint I hear from constituents is about the high cost of registering an automobile in our state," Goldwater said.

Goldwater's plan is the second this week from an Assembly Democrat attempting to make current taxes less regressive.

Assembly Speaker Richard Perkins, D-Henderson, on Tuesday announced a proposal to offer a $50,000 across-the-board value exemption on all property subject to the proposed 16-cent increase in property tax. That would mean a homeowner would have less of a property tax burden than the owner of a large casino or business. In addition to raises in the room and gaming tax, Goldwater is looking at removing the sales tax exemption on newspapers, which covers newspapers and all materials used in the production of papers. He also would lift the home office exemption for insurance taxes.

They could raise between $10 million and $20 million a year each, he said.

Meanwhile two state senators on Friday are to offer the first alternative from lawmakers to Gov. Kenny Guinn's tax plan. It comes after months of work on a way to raise revenue without imposing a gross receipts tax on business.

Sens. Mark Amodei, R-Carson City, and Terry Care, D-Las Vegas, said they will introduce a comprehensive tax proposal involving a 2 percent increase in the room tax, a sales tax on some services and a larger increase in the gross gaming tax.

Care said the bill, which is about 190 pages, is being scrutinized carefully to ensure the elements are constitutional and would bring in enough revenue.

"This is just an alternative, something for people to consider," Amodei said.

The Care-Amodei bill does not include any new taxes, as Guinn's plan does, but simply raises the rates or implementation of existing taxes.