Guinn proposes rebate for vehicle registrations

Thursday, Jan. 6, 2005 | 11:12 a.m.

CARSON CITY -- With tax revenues coming in faster than expected, Gov. Kenny Guinn today unveiled a plan to give a rebate of up to $300 for each vehicle registered last year.

"The state has a surplus of about $300 million and I am proud to announce that in our plan, 80 percent of Nevadans who registered a vehicle in calendar 2004 will receive a full rebate," the governor told a press conference in Las Vegas.

The rebate would cost the state $300 million that would come from the general fund surplus and not the state Motor Vehicle Department. "This proposal has no impact on schools or local governments," Guinn said in prepared remarks.

Guinn's plan comes after Sen. Bob Beers, R-Las Vegas, suggested a $100 rebate on each vehicle. At that time Guinn was lukewarm to Beers' plan.

A Guinn spokesman said the rebate would be based on the value of the vehicle. The maximum payout would be $300. Guinn estimated 409,639 Nevadans would get the maximum $300.

Special and vanity plate fees, late fines and other fees are excluded in computing the rebate, he said.

The state is estimating it will have an extra $312 million in its balance at the end of this fiscal year.

The plan would have to be approved by the 2005 Legislature.

"I'm proud of the action that the Legislature took during the last session and I believe we can all take credit for protecting our investment and the resulting economy that today is roaring," Guinn said.

"My administration has worked hard to fund our state's priorities with reasonable allocations while being fair to the taxpayers."

The governor said he also gave consideration to a sales-tax holiday but instead chose the rebate on vehicle registration fees as "the most practical and fairest way to refund the surplus."

The cash in the surplus has been used in the past for paying for buildings or other projects.

He said the rebate plan is a "comprehensive" approach and the rebates will be on cars, motorcycles, trailers and other vehicles. Individuals who register more than one car will receive a rebate on each of them. And businesses will also receive the refunds, if the plan is approved by the Legislature.

This rebate, the governor said "will stimulate the state's economy."

Besides the sales tax free day, Guinn also considered a real estate rebate. But he said renters would not get the money if there was a refund.

At his news conference, the governor also said he backed efforts to cap property taxes. He said the state can't allow property tax values to rise 40-60 percent. "Something must be done," he said.

He also said he intends to substantially replenish the "rainy day" fund, which is now at $120 million. He said he hopes to get at least $150 million in the fund that he characterized as savings account for taxpayers.

Even with this refund, Guinn said he will provide money for the more than 35,000 new public school students expected to enroll in the state in the next two year.

It is his responsibility, he said, to set aside the money for these students.

His statement comes after a report from the group called Quality Counts that says Nevada ranks 48th in the latest per pupil spending.