Tuesday, Jan. 11, 2005 | 9:18 a.m.
A proposal by state Sen. Dina Titus, D-Las Vegas, to freeze property taxes for a year is gaining momentum following a seminar last week at which various options to head off a tax revolt in Southern Nevada were reviewed. Property values here soared over the past 18 months as low interest rates, a shortage of homes and a home-buying spree by investors combined to push prices skyward. Longtime homeowners could only watch as their property values increased 30 percent to 50 percent. With property taxes scheduled to increase proportionally, legislators fear a backlash from taxpayers if something is not done.
The first proposal, offered last summer by Clark County Assessor Mark Schofield, was to cap property tax increases at 6 percent. Schofield said this would allow state and local governments to meet growing expenses while staving off taxpayer-initiated petitions that could result in a more extreme cap. Faced with a similar situation in 1978, and inaction by the government, taxpayers in California pushed through Proposition 13, an initiative that capped increases at 2 percent.
Schofield's proposal was followed by several others, including one by Assemblywoman Sharron Angle, R-Reno, that is a clone of Proposition 13. It's exactly what Schofield was trying to avoid, and what many legislators and tax experts agree would be a financial blow to Nevada. Proposition 13 caused multibillion-dollar deficits in California and that state is now facing the prospect of debilitating program cuts.
Titus proposed her freeze because she believes the Legislature cannot arrive at a workable solution by March, when Schofield's proposal would have to be approved for it to affect this summer's tax bills. Granted, the various proposals are complicated but the Legislature should be able to work through them.
If there is to be a year's delay in reaching a permanent decision, it should not involve a freeze, which growing state and local governments cannot afford. Instead of freezing the taxes for a year, the Legislature should consider adopting Schofield's plan for a year. This would allow government to meet its financial needs and address Titus's concern for enough time to make a permanent decision.
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