Lawmakers get first taste from bitter homeowners

Kirsten Searer

Friday, Feb. 18, 2005 | 11:17 a.m.

CARSON CITY -- A line snaked out the door Thursday as everyday people got their first chance to sound off to lawmakers about rising property taxes.

In almost three hours of testimony, some were furious, some were sad, some vowed revenge.

"If you don't listen to us, the people who elected you, and you do not enact timely, equitable, just tax relief, you will awaken a sleeping wave of taxpayers," said Larry Biehn of Minden, whose property value costs have inched up for years, but are set to increase 30 percent this year.

"We will take action in the form of a California Proposition 13 initiative," he said. "Therefore, I implore you to act swiftly and get the job done. Otherwise, we'll be back."

Lawmakers were expected to hear more this afternoon in a public hearing at the Sawyer State Office Building, 555 E. Washington Ave. They are looking to change the state's property tax system, and the testimony Thursday proved their constituents won't be easy to please.

Biehn wasn't the only one who threatened to pursue a Proposition 13-style change or something that would cap the increase in property assessments at the rate of inflation. Several people on fixed incomes said their incomes rise about 2 percent a year, but rising property taxes could cause them to lose their homes.

"I expected to live in it for the rest of my life and I hoped I would be able to hand it to my children to live in or use as a vacation home," said Leonard Gang of Incline Village, whose land value has gone up 80 percent in four years. "I don't think that's going to happen because, simply put, the property taxes are just getting too enormous."

The testimonies were consistent. Jay Harvey of Reno saw a 60 percent increase this year. David Burns of Minden has seen his land value more than double in recent years. Tom Ferrara of Minden saw a 69 percent increase.

Maryanne Ingermanson is set to pay $80,000 in property taxes this year, up from $30,000 in 2002. She originally bought her home for about $100,000 in the 1960s but saw it grow to a $2 million assessed value in 2002 and, now, more than $6.5 million.

"We're not whiners," said Ingermanson, who suggested some sort of cap on land assessment. "That is not the case. We're reasonable and respectful folks.

"But when there's no warning, you can't really blame them for being out there when their taxes escalate at an absolutely astronomical amount."

The joint legislative committee looking at the issue had already heard more than 16 hours of wonkish testimony from lobbyists and tax experts on how the more than 14 ideas for tax changewould affect the state.

Several warned that property tax caps could have dire consequences for both rural counties where assessment values are shrinking and growing governments, such as Clark County, that are struggling to build new fire stations, libraries and more.

Sally Johnson, a nurse at University Medical Center's trauma center, pointed out that Clark County raised $44 million last year for indigent medical care through property taxes, and she said figures for this year are expected to top $50 million.

She worries that more and more people are coming to UMC for indigent care, yet the fund could be stretched even more thin with property tax change.

"This relief needs to be targeted to those most in need -- hardworking Nevadans need the most relief, not state speculators," she said.

Johnson, however, said her own taxes are rising and she recognizes the need for change.

World War II Veteran Ike Eichbaum testified Thursday that he was excited to get a $15 a month increase recently in Social Security, until he realized his Medicare was increasing $10 a month.

It's not feasible for seniors like him to pay huge increases in property taxes, he said, suggesting the Legislature put some sort of freeze in place for seniors.

"Seniors on fixed income should have a reasonable quality of life when they retire," he said.