Minimum wage hike approved; tax breaks defeated

Wednesday, Nov. 3, 2004 | 10:34 a.m.

CARSON CITY -- Nevadans overwhelmingly favored raising the state's minimum wage, but they didn't support giving further tax breaks to such things as racing cars and art on public display.

"The people know you can't live on $5.15 an hour," said Danny Thompson, executive director of the Nevada State AFL-CIO, which pushed the initiative petition. "You can't even feed your family."

Question 6 would change the constitution to boost the minimum wage to $6.15 an hour for employers who do not provide health insurance for workers and their dependents. Health insurance is described as a plan in which the premiums for the worker do not exceed 10 percent of their gross taxable income.

The amendment would also provide for increases up to 3 percent every year based on the consumer price index. It will now have to be passed in 2006 before it becomes effective.

The minimum wage petition piled up 542,253 votes with 250,632 opposed. Every county voted in favor of it.

Voters resoundingly defeated Question 8, which would have given further sales and use tax breaks. "The consumers are going to lose," because of the defeat, Wayne Frediani, representing the Nevada Franchised Auto Dealers Association, said. One of the tax breaks lost was on the value of a car used in the trade of a purchase of another car at a dealership.

"It's very unfortunate," he said. "I'm not sure the citizens understood it. It was poorly written."

The question did, however, extend the tax exemption for people selling cars among private parties.

The vote on Question 8 was 283,884 in favor and 466,489 opposed. It lost in every county.

Voters also approved Question 7, which would make technical changes to the Nevada Constitution. In 1913 the U.S. Constitution was amended to provide for direct election of senators, but the Nevada Constitution was never changed. It required that the Legislature choose the person to serve in the U.S. Senate.

The present language in the state Constitution also prohibits an "idiot or insane person" from voting. It would be replaced by language that says a person "who has been adjudicated mentally incompetent unless restored to legal capacity" could not vote.

The Legislature in 2001 and 2003 passed the proposed constitutional amendment and its passage by the voters will make it effective. The vote in favor was 416,272 and 349,955 opposed. It passed in only six of the 17 counties but it gained approval in Clark and Washoe counties, the two most populous.

There was no organized opposition to the minimum wage. Thompson said there are 55,000 Nevadans who work in various occupations that earn the present $5.15 per hour. And there are 101,000 who make $6.15 an hour with no health benefits.

In view of the overwhelming support, Thompson was asked if he might petition the 2005 Legislature to raise the minimum wage, rather than wait for the voters in 2006 to approve it. But Thompson said the Legislature could boost the minimum wage but then take it away.

"That would be catastrophic," he said. Putting it in the state Constitution will protect it from being changed by the Legislature, he said.

On the tax exemption question, the purpose was to standardize the sales tax exemptions offered in the state. The Legislature exempted such things as eyeglasses, farm equipment, racing car parts and art that is on public display from the portion of the sales tax that goes to schools and local governments. But voter had never approved the exemption of the 2 percent that goes to the state.

In one case -- sales of cars among private parties -- voters had approved an exemption of the 2 percent that goes to the state, but the Legislature never exempted the remainder, which goes to localities and schools.