Amendments introduced to lower property taxes

Tuesday, March 22, 2005 | 11:20 a.m.

CARSON CITY -- Proposed constitutional amendments to allow homeowners to pay lower property rates and to restrict government spending were introduced Monday in the Senate.

Property tax relief is the most pressing matter at the Legislature because of the public outcry and because local governments have repeatedly said that any changes need to be made prior to the end of this month to avoid incurring additional costs related to the mailing of tax notices.

Senate Minority Leader Dina Titus, D-Las Vegas, on Monday sponsored Senate Joint Resolution 7 to permit the Legislature to provide an abatement of the property tax or an exemption for single-family homes.

Under current state law, all property must be taxed at the same county rate. The Legislature this session has run into a roadblock in trying to give property tax relief to homeowners only.

Sen. Bob Beers, R-Las Vegas, introduced Senate Joint Resolution 5 that would limit the increase on taxable value of a property to the rate of inflation or the value based on an appraisal of the property, whichever is less.

SJR5 restricts the spending of the state in the next fiscal year to the rate of inflation plus the percentage change in population.

The limit on counties, cities and other local governments would be the inflation rate plus the percentage change in the rate of new construction. School district budgets would be restricted to the inflation rate plus the percentage change in the rate of enrollment.

Any tax increase or any increase in the public debt would have to be ratified by the voters. Right now the Legislature can approve a tax increase by a two-thirds majority and there is no public vote required.

Beers has also introduced Senate Joint Resolution 6 to put a cap on government spending. It would restrict increases of the state budget to no more than 3.6 percent of "the total personal income in the state for the immediately preceding calendar year." But the voters would be allowed to override that 3.6 percent limit.

If the tax revenue came in faster than expected, the excess money would have to be used to reduce the tax imposed on motor vehicles. Voters would also have to approve any tax increase under the proposed constitutional amendments.

If the Legislature approved these resolutions, they would need to be passed again in 2007 and then ratified by the voters in 2008 before they could take effect.

Also introduced in the Senate on Monday was legislation to change election laws.

Sen. Barbara Cegavske, R-Las Vegas, introduced Senate Joint Resolution 8 to amend the Constitution to prevent the Legislature from changing any tax law for three years after its approval by the voters.

Her resolution also says that if any part of an initiative petition or referendum is found to be unconstitutional, the whole petition must be declared invalid. At present, a part of a petition can be found to violate the state or federal constitution but the other sections may be put into effect.

Sen. Steven Horsford, D-Las Vegas, sponsored Senate Bill 228 requiring the Secretary of State to appoint committees composed of members of both political parties to prepare a summary and explanation on the ballot of each proposed constitutional amendment or initiative petition.

The same requirement would apply in counties of more than 40,000 and cities in excess of 10,000. The county commission or the city council would appoint the committees to write the explanations for the ballot.