Tuesday, Nov. 23, 2004 | 11:05 a.m.
CARSON CITY -- Gov. Kenny Guinn said Monday he wants the 2005 Legislature to take a look at changing the $833.6 million tax increase that hit some small banks, other financial businesses and restaurants.
The Legislature, Guinn said, needs to "clarify" the law that did not have much open discussion in the closing days of the special session of the Legislature in 2003.
He also said a few people have expressed interest in replacing Attorney General Brian Sandoval, who is expected to be confirmed as a U.S. district judge in Reno in April or May. He said he will appoint a Republican who is interested in running in the 2006 election for the office.
"But it's not appropriate for me for start talking about it now," he said. "It should be somebody who is interested in running."
The Legislature imposed a 2 percent tax on gross payroll on financial institutions. And banks must pay $7,000 a year for each branch bank.
"They should look at the 2 percent because a lot of other people got caught up in the 2 percent," Guinn said. "The people said they are not bankers. They (the Legislature) will have to restructure that or at least look at it."
The 2 percent tax, Guinn said, ended up affecting such businesses as check cashing services or mortgage companies that hold fees. "They (the Legislature) may not change it (the law) but maybe they need to clarify it."
"They should be willing to listen to people who would come forward to say 'this element is adversely affecting us,' " said the governor.
"A lot of things were placed on that bill at the very end without a lot of open discussion," he said. "It's important when you make that much of a change that you have time to go back and pay attention to it by getting input from the various people.
"I think if they would have understood that before and had time, you wouldn't have the fellow running the little banking and savings operation, in say Pioche, coming in and saying, 'I have only $4 million total deposit. I can't afford $7,500.' "
The governor was once a president of a savings and loan business. When he was in the industry, he said, his organization would close the business if it had only $10 million or $12 million in deposits "and move it to the next place because there is too much overhead."
"But they (the small financial institutions in rural Nevada) are trying to service the people out there and their earnings are small compared to the earnings in the city."
There also should be some adjustment on the 10 percent entertainment tax that hits restaurants where there's piano player, he said. The tax is charged on food and drinks. The governor said he isn't talking about changing the 10 percent entertainment tax on casinos but on other businesses that were included in the bill.
"These are the changes they (the Legislature) will be looking at and I will help them get some of those changes," said Guinn.
But the governor repeated he will not sign any bill for new taxes. He said he hasn't had many complaints on the increases in liquor, cigarette and real property transfer taxes.
There are more than 20 bill requests for the 2005 Legislature so far to change the taxes imposed in 2003.
Assemblyman John Marvel, R-Battle Mountain, wants to modify the business tax on financial institutions and their branches. Former Assemblyman Tom Collins, D-North Las Vegas, who was elected to the Clark County Commission, has asked for a bill to change the tax on community banks.
Senate Minority Leader Dina Titus, D-Las Vegas, wants to modify the entertainment tax, while Sen. Bob Beers, R-Las Vegas, has asked for a bill to repeal the tax package.
The Legislative Committee on Taxation has asked for a bill to modify the $100 tax on "amateur renters" those who have less than four units they rent out. This could affect some 20,000 people in Nevada who came under the $100 a year tax.
Details of these bills are kept confidential until they are introduced.
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