Legislators likely to ignore Guinn’s call for temporary increase of taxes

Erin Neff

Monday, March 31, 2003 | 11:06 a.m.

CARSON CITY -- Gov. Kenny Guinn eyes today in the same way many taxpayers see April 15 -- as a red-letter deadline.

But Guinn's plea for legislative approval of a $75 million emergency tax plan -- to take effect Tuesday -- may have fallen on deaf ears.

While Guinn's staff was hopeful late last week that lawmakers would still approve the plan today, the chairmen of tax committees still believe that a joint meeting today of the committees won't result in passage of Guinn's bill.

Both tax committees were scheduled to meet this afternoon about the governor's tax proposal, which would hike taxes on four existing revenue sources to ensure the state can emerge with a balanced budget June 30.

The proposal is in addition to Guinn's call for nearly $1 billion in taxes for the next two fiscal years.

In the state capital, where a two-thirds majority is needed to pass any tax measure, most lawmakers aren't yet ready to push a button for any tax plan.

"I don't think anyone wants to vote twice for taxes," said Sen. Mike McGinness, R-Fallon, chairman of the Senate tax committee.

"We aren't even sure that the revenues would come in time to take effect for this fiscal year," said Assemblyman David Parks, D-Las Vegas, chairman of the Assembly tax committee.

Senate Majority Leader Bill Raggio, R-Reno, and Sen. Ray Rawson, R-Las Vegas, have led the push to call for a vote for the governor's short-term plan in the tax committees.

Until today lawmakers have been reluctant to pass the plan, but Guinn's staff was expected to make a presentation detailing how a lengthy war in Iraq could affect Nevada's economy.

"They're going to have to make the case," Parks said.

Guinn's short-term plan would raise taxes on cigarettes, liquor, business licences and slot route operations from April 1 to June 30.

The governor has consistently argued the taxes were needed for fall-back revenue because the war with Iraq could result in a blow to the state's tourist economy and lead to an inability to balance the budget at the end of the fiscal year, June 30.

Lawmakers amended the governor's requested transfer of $100 million from the so-called rainy day fund to take $135 million.

"This is so we don't have to raise taxes," Assemblywoman Chris Giunchigliani, D-Las Vegas, said when the bill passed.

Nevada Taxpayers Association President Carol Vilardo cheered the legislative move, saying the rainy day fund exists for just such a purpose.

While many lawmakers have never been sold on the need for temporary taxes to get through the current fiscal year, most are convinced that some level of new taxes is needed for fiscal years 2004 and 2005.

Three major tax bills have already been introduced, each raising close to $1 billion in new revenue for the two years.

Assembly Republicans have offered another plan to cut roughly $400 million in government programs and services and raise $600 million in taxes.

Certain elements of the tax proposals already introduced face a difficult audience in the Legislature, including the proposed gross receipts tax on businesses and a tax on admissions and amusements.