Editorial: Capping tax a sound idea

Tuesday, Nov. 16, 2004 | 8:55 a.m.

The final confirmation that property taxes are going up -- way up -- is arriving at homes and businesses across the Las Vegas Valley this week in the form of postcards from the Clark County assessor's office. As taxes are based on a property's value, the cards show the current value, upon which taxes have already been levied, and the value after July 1, upon which the 2005 tax bill will be based. Because land prices rose dramatically over the past year, a majority of property owners will see a huge increase in value, meaning a huge increase in taxes.

Normally, these "notice of value" cards are mailed in mid-December, but Clark County Assessor Mark Schofield sent them out early this year, knowing that his office would be flooded with calls once the final realization of a major tax increase sunk in with property owners. Early notice also gives state legislators a chance to gauge the reaction. In June, Schofield, foreseeing the consequence of thousands of property owners facing tax increases of 40 percent and above, called upon the Legislature to cap the increases at 6 percent. For the cap to affect the 2005 tax bills, the Legislature would have to approve it by March.

The consequence of which Schofield speaks is easy to foresee. There would be a taxpayers' revolt, similar to the one in California that led to the passing in 1978 of Proposition 13. In turn, Proposition 13 led to the financial chaos that characterizes California today. Schofield is serving Nevada well by advancing a solution that would avoid such a fate. The assessor says an increase, capped at 6 percent, would be high enough to keep state and local governments solvent during this period of high growth, and low enough to stave off taxpayer unrest.

Schofield's staff is preparing a report about his proposed cap for the Legislature that we hope is acted upon early in the 2005 session. With perpetual growth creating a perpetual need for expanded public services, a tax revolt is the last thing Southern Nevada needs. If nothing is done to cap the tax increases, Schofield accurately points out that state and local governments would "have all the money they need -- until the initiative petition appears."