Guinn decides against special session on taxes

Monday, Aug. 2, 2004 | 8:52 a.m.

CARSON CITY -- Gov. Kenny Guinn has decided against calling a special session of the Nevada Legislature to put a cap on spiraling property tax values and said Friday the issue can be dealt with at the 2005 regular session.

And Senate Minority Leader Lynn Hettrick, R-Gardnerville, one of those who urged the governor convene a special session, agrees that the regular session could accomplish the goal.

Hettrick said he was "satisfied there is enough time" in 2005 to get the law changed to limit the property values to a suggested six percent a year by the time the tax bills are distributed next year.

The governor said he did want to ensure that property owners "are not gouged." He said he has assurances from Senate Majority Leader Bill Raggio, R-Reno, and Assembly Speaker Richard Perkins, D-Henderson, that the issue can be dealt with in 2005 in time to avert problems for taxpayers.

The Legislature has been unable to complete its work with the timeframe of the last two regular legislative sessions, however. The session begins Feb. 7 and lasts 120 days. Special sessions to extend the Legislature's work were required in 2001 and 2003, however.

But Hettrick said there appears to be agreement on this issue and there wasn't such agreement on the major topics of reapportionment in 2001 and the tax increase in 2003.

Clark County Assessor Mark Schofield has suggested a 6 percent limit for property tax increases and he says without the cap some tax values could be rising 50 percent. And raw land could increase by more than 200 percent.

Advocates of the limit suggest some people may be driven out by higher taxes.

While there may be agreement on the need for a cap, there is no consensus on what the limit should be. Some suggest a cost of living adjustment would be appropriate and others say something less or more than 6 percent.

Guinn agrees with Schofield that the property tax relief must be in place by the time county assessors compile tax rolls in March. This would give county assessors enough time to make adjustments for property tax bills that are issued in July 2005.

The governor said he also agrees "with property owners that local governments should not receive a windfall of tax dollars at property owners' expense," Guinn said. "There is plenty of time to address this issue before the next property tax bills go out in July 2005."

Sen. Ann O'Connell, R-Las Vegas, one of those who suggested a special session, already has asked for a bill for the 2005 Legislature to put the 6 percent cap on property values. Perkins and Senate Minority Leader Dina Titus, D-Las Vegas, also have requested a bill to impose a limit on property values.

Assemblywoman Sharron Angle, R-Reno, who is pushing a constitutional amendment to limit the yearly valuation increase, also has requested a bill to limit taxes. She sponsored a similar resolution in 2003 but it never got out of committee. She recently started a drive for an initiative petition to cap taxes. But she did not gather the signatures necessary within the time limit to qualify it for the ballot.

Guinn said his decision to forgo an early special session will save the taxpayers money. But if the time spent on this matter delays action on other business it still could force a special session after the regular session. Guinn has set the Nevada gubernatorial record for convening special sessions -- four -- since he took office nearly six years ago.