War heightens state tax debate

Erin Neff

Thursday, March 20, 2003 | 9:11 a.m.

CARSON CITY -- Legislative leaders said this morning the start of the war against Iraq will have an immediate impact on the state's economy.

Senate Majority Leader Bill Raggio, R-Reno, said he has already heard reports that travel bookings and reservations were down in Nevada as the war drew imminent.

"We need to prepare," Raggio said this morning. "We need to be prepared and we have to quit talking and do some revenue examinations."

Assembly Speaker Richard Perkins, D-Henderson, said the Legislature had been "ramping up" to the possibility of war, and now must re-examine the need for temporary taxes.

"This will have an immediate impact on our discussions about those short-term revenues," Perkins said shortly after the war began Wednesday night.

Raggio added: "We don't have the luxury of time."

Gov. Kenny Guinn has asked the Legislature to approve $77 million in taxes to be implemented April 1 and end June 30 at the end of the fiscal year. He argues the revenue is needed as a cushion in the event that tax revenues do not come in as projected.

While legislators initially balked at the short-term tax proposal, Guinn said he thought the war would change their minds.

"There just isn't a lot of time for them to wait," Guinn said.

The state receives delayed reports of sales and gaming revenues, which make up 50 percent of Nevada's general fund revenues. Any immediate downturn in revenues caused by a slow down in travel will not be confirmed for several months.

This afternoon in Las Vegas, the Assembly Taxation Committee will hear testimony from Lt. Gov. Lorraine Hunt and others about the economic stability of the gaming and tourism industry.

Senate Minority Leader Dina Titus, D-Las Vegas, said this morning the war will have a definite impact on the tax debate.

"It moves an already difficult situation into red alert," Titus said.

Life went on at the Legislative Building after the war began, with no alterations to meetings, travel or other matters.

Lobbyists and lawmakers alike donned red, white and blue ribbons tacked onto their clothing with a pin of the U.S. and Nevada flag.

Guinn and his staff have been assessing information since President Bush spoke to the nation Monday night to issue a deadline to Saddam Hussein.

The governor said he supports the course of action Bush has opted to take. Guinn said his thoughts and prayers are with Nevada's military families.