Guinn’s emergency tax plan in trouble

Erin Neff

Tuesday, March 25, 2003 | 11:09 a.m.

CARSON CITY -- Despite fiery rhetoric from the governor and a quickly-approaching deadline, lawmakers appear no closer to approving Kenny Guinn's call for $77 million in "emergency taxes" than when he first proposed it.

Neither legislative taxation committee chairman has scheduled a vote on Guinn's bridge tax plan -- a proposal that would raise taxes on cigarettes, liquor, slot route operators and business licenses from April 1 to June 30.

Lawmakers would have to approve the plan by Monday in order for the state Taxation Department to implement the plan April 1. Since all of the proposed tax increases involve existing taxes, the department said it can easily adjust the rates and collect the increases with little effort or time.

Sen. Mike McGinness, R-Fallon, has consistently said he did not think there was an appetite from members of his Senate Taxation Committee to approve the temporary taxes. Today he said he might bring the matter for a vote on Thursday to put the matter to rest once and for all.

Two state senators, Ray Rawson, R-Las Vegas, and Majority Leader Bill Raggio, R-Reno, spoke during a recent floor session on the state's precarious financial situation. McGinness said he thought their remarks might help to sway some lawmakers that the taxes are needed.

"There has been some movement after Raggio and Rawson spoke," McGinness said.

But even if the tax committees pass the proposal on to the full houses, a two-thirds majority is required for passage in each house, and a majority of lawmakers have already expressed opposition to the plan.

Assembly Taxation Committee Chairman David Parks, D-Las Vegas, said he has not polled his committee members, but he may also discuss the short-term proposal this week. Both tax committees were to meet this afternoon and Thursday afternoon.

"Nobody's really been calling for a vote," Parks said.

The fiscal year ends June 30, and by law, the state must balance its budget and have a 5 percent ending fund balance as a reserve.

Last week the Legislature approved taking $135 million of the $136 million "rainy-day fund," to ensure the state ends the year with a balanced budget.