State works on details of $300 million in rebates

Wednesday, July 6, 2005 | 9:27 a.m.

CARSON CITY -- Final details are expected to be ironed out by next week on how the state will distribute $300 million to Nevada motorists, but residents should not expect their money until September.

Michael Hillerby, chief of staff to Gov. Kenny Guinn, said Tuesday things should be in place "in the next couple of days" on how the rebates will be handled.

"We hope to have all the questions answered by then," he said.

He declined to confirm that Bank of America, the state's present banker, is the favorite for handling the refunds. He said the bank presented a "very good proposal" and added it would make sense to continue business with the bank.

But he said there is no final decision.

State Controller Kathy Augustine, who suggested her office handle the writing and mailing of the checks, said Bank of America has been selected. That decision, she said was made about two weeks ago.

"I think we could have handled the job," Augustine said. The Legislature used her estimates in determining that $2 million would be needed to finance the rebate program, she said.

About two dozen companies contacted the state Purchasing Division expressing interest in handling the processing of the refunds.

Guinn suggested the $300 million rebate from surplus tax revenue. As modified by the Legislature, the checks will range from $75 to $275 for those who registered cars in 2004.

Excluded from the rebate will be utility trailers, vehicles weighing more than 26,000 pounds and rental car fleets. Taxicab companies and other businesses that have big fleets will qualify for the rebate.

Hillerby said the state Department of Motor Vehicles is working on preparing the list of eligible recipients. One benefit, he said, is that people are updating their addresses with the motor vehicle department.

He said there may have been deaths or divorces or name or address changes that need to be changed on the motor vehicle records. And people seeing the publicity want to make sure their checks are not sent to the wrong address.

The database of the department should be ready by Sept. 1, he said. Also, Nevada is getting some advice from Washington state. Hillerby said that state sent out 2.3 million checks in a court settlement case. Nevada will send out an estimated 2 million rebate checks.