Tax Commission disputes that it violated open meeting laws

Kevin Rademacher

Wednesday, June 8, 2005 | 9:42 a.m.

Members of the Nevada Tax Commission on Tuesday voted unanimously to reject a finding by the Attorney General's Office that it violated the state's open meeting law.

Earlier this month, Senior Deputy Attorney General Neil Rombardo issued an opinion that the commission violated the open meeting law "by conducting a closed meeting without legal authority and by voting during the closed meeting."

The April 4 meeting in question involved an appeal by Leisure Homes Corp., which was disputing a transient lodging tax being assessed by the Reno-Sparks Convention and Visitors Authority.

In Tuesday's meeting, the commission said that it has closed some meetings in an effort to protect confidential taxpayer information, which it is bound by statutes to do.

Commission members also bristled at the fact that the Attorney General's office has found them in violation of the open meeting law despite the fact that they said meetings are only closed after consulting with legal counsel.

Dana James, the deputy attorney general for the Tax Commission, laid out three options for the commission. Those options included accepting the finding that the open meeting law was violated and schedule the meeting for rehearing, disagreeing and maintaining that no violation occurred, or disagreeing with the violation finding but rehearing the case anyway.

Ultimately commission member Thomas Sheets moved to disagree with the finding of a violation and letting the original ruling stand. The motion passed unanimously.

James predicted the Attorney General would respond to the commission's vote to stick by its closed-meeting ruling.

"I believe that the Attorney General would take legal action," she said.

After the meeting, Charles Chinnock, executive director of the Department of Taxation said the next move is up to the Attorney General's office.

"The ball is in the AG's court," he said.

Earlier in the meeting, commissioners also expressed frustration over an analysis provided to the commission by Keith Marcher, supervising senior deputy attorney general.

The commission had asked for an analysis of what information may be used publicly in light of statutes that protect the confidentiality of some documents and its apparent conflict with the open meeting law.

Marcher's opinion said that while confidential information can be accepted in closed sessions, the commission must deliberate and and take action in an open meeting. Further, the analysis said that the open meeting law protects the commission from revealing confidential information in deliberations "as long as only 'relevant information' is revealed."

"It makes absolutely no sense to me," said commission member John Marvel. "I think the AG's office needs to take a closer look at their opinion."

Unhappy with vague definitions, such as "relevant information," the commission voted to order the Attorney General's Office to provide a "more detailed legal analysis" on the issue.

The commission also indicated that it could finalize a possible $40 million tax refund for Southern California Edison at a scheduled June 27 meeting. Last month, in a closed session, the commission indicated that is would accept the company's appeal.

The California utility operates the Mohave power plant near Laughlin by importing out-of-state coal. Nevada taxes out-of-state coal while exempting coal and other minerals mined in the Silver State. Southern California Edison argued that it was entitled to the exemption, an effort it says it made in order to save money for customers.

Nevada Power Co. of Las Vegas owns a 14 percent stake in Mohave and could be entitled to a share of the refund, a company spokeswoman said.

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