Tax holidays proposed to share surplus

Kirsten Searer

Thursday, April 14, 2005 | 9:40 a.m.

CARSON CITY -- Legislators are pondering several different ways to refund the projected surplus this year, and Assembly Speaker Richard Perkins, D-Henderson, made his pitch Wednesday.

Assembly Bill 320 would create a sales tax holiday on certain days of the year, designed to give consumers a break and retailers a boost.

Perkins said 12 states currently give a sales tax holiday. Some give for one day or several days, he said. The average is a three-day holiday, he said.

States can also give the tax break on restricted items -- such as clothing -- or on all retail items, including cars and other big tickets, Perkins said.

The holiday could be before back-to-school time, when parents are looking to buy clothes and materials, he said.

Both the Retail Association of Nevada and the Las Vegas Chamber of Commerce endorsed the bills, with representatives saying it would increase sales and boost the economy.

The Commerce and Labor Committee did not take action on the bill Wednesday. A similar measure, Senate Bill 167, also would give a sales tax holiday and is waiting for action from the Senate Finance Committee.

If approved by the Legislature, a sales tax holiday would have to be sent to the public for a vote.