Monday, March 28, 2005 | 11:15 a.m.
A new plan would cap taxes paid on owner-occupied homes at 3 percent a year and cap other properties at the average 10-year growth in the county.
Local governments in Clark County will see less growth under the plan than they would with no caps:
Boulder City (includes city fund) Rate of revenue growth with no caps: 19.6 percent
Rate of revenue growth with caps: 5.7 percent
Clark County (includes county fund, county debt services, school district and school district debt services) Rate of revenue growth with no caps: 28.1 percent
Rate of revenue growth with caps: 8.8 percent
Henderson (includes city and city debt) Rate of revenue growth with no caps: 28.3 percent
Rate of revenue growth with caps: 8.8 percent
Las Vegas (includes city fund, city debt and fire safety) Rate of revenue growth with no caps: 30.3 percent
Rate of revenue growth with caps: 8.4 percent
North Las Vegas (includes city, city debt, emergency 911 fund, library, public safety and street maintainance) Rate of revenue growth with no caps: 36.8 percent
Rate of revenue growth with caps: 11.3 percent
CARSON CITY -- Legislators will get a chance today to see if lobbyists like a new plan to cap property taxes as much as the politicians do.
Lawmakers are expected to conduct a hearing today on the plan, which would cap tax bills of all owner-occupied homes at 3 percent a year.
Taxes on other properties would be capped at either the 10-year average rate of growth in the county or twice the rate of the consumer price index -- whichever is more.
Top leaders in Carson City praised the idea Friday as a bipartisan solution to smooth property taxes that, if left untouched, could force some people out of their homes.
"I think it's the best solution," Senate Majority Leader Bill Raggio, R-Reno, said. "It's fair. I think it meets the goals we initially set forth, which were obviously to deal with the spikes. We were seeking normalcy."
And while Assembly Speaker Richard Perkins, D-Henderson, said this morning he believes the bill is on track for approval, business interests are complaining that the plan would unfairly place a greater tax burden on owners of commercial property.
Business lobbyists said the plan could effectively create a split roll -- a system that taxes homes differently than commercial property. A split roll would not only put more of a tax burden on businesses, it also could violate a provision in the state constitution that requires properties be taxed in a "uniform and equal" way.
"All properties should be treated equally, as it is stipulated in Article 1, Section 10 (of the state constitution)," said Christina Dugan, government affairs director of the Las Vegas Chamber of Commerce.
Businesses had an ally Friday in Sen. Sandra Tiffany, R-Henderson, who is a small business owner.
"I call it a split roll," Tiffany said. "I know it's a nasty word."
Backers of the plan were quick to say it is not a split roll. They are pushing a provision in the state constitution that allows them to give hardship exemptions to owner-occupied homes.
Perkins pointed out that other residences, such as apartments and rental homes, would not receive the 3 percent cap and would receive relief through the 10-year average.
"It's not a split roll," he said.
Sen. Mike McGinness, R-Fallon, said he believes the plan for a temporary fix will meet constitutional muster.
"I don't see it as a split roll," he said. "I see this as a temporary solution."
Tiffany said she thinks homeowners are getting a better break because legislators wanted to ensure that governments were made "whole," meaning they didn't take cuts in revenue.
"My point was they should be treated equally and they're not because they're trying to keep governments whole," she said. "And that bothers me."
Dugan said the Legislature never had a meaningful conversation about curtailing government revenue, even though Nevada's local government employes are the third-highest paid government employees in the country, largely because of Clark County's salaries.
"A lot of the dialogue is making sure local governments are kept whole," Dugan said.
Still, the property tax bill received broad support from legislators and some government representatives trying to balance the needs of growing counties experiencing huge spikes with rural counties that have seen negative growth.
The plan is "as equitable as we can be and not break the bank at the same time," Assembly Minority Leader Lynn Hettrick, R-Gardnerville, said.
Overall, the plan would deal rural counties much less of a hit than other ideas circulated to curb taxes, said Andrew List, executive director of the Nevada Association of Counties.
The Legislature still would likely set aside funds to ease cuts that school accounts and counties might experience, said Assembly Majority Leader Barbara Buckley, D-Las Vegas.
Since the governor's budget forecast at least 8 percent growth in property taxes in the biennium, the Legislature would have to set aside at least $24 million to supplement the Distributive School Account, she said.
Sen. Dina Titus, D-Las Vegas, said she could support the bill in the future, but she is "astounded that they think this is constitutional."
"It does create a split roll, whether you want to admit it or not," she said.
Titus said she's also bothered by the notion that all homeowners would get a hardship exemption, regardless of their ability to pay taxes.
"If somebody challenged it, it would be hard to say Steve Wynn has an economic hardship," she said.
If legislators are behind the motion, however, Titus said she would move to amend it so homeowners would receive a freeze in their property taxes this year, with a 3 percent cap next year.
The current 3 percent cap wouldn't give all homeowners a break, said Titus, who suggests that a property tax break might be a better way to refund surplus money to taxpayers than a refund through vehicle taxes, as others have suggested.
"I think you need to give everybody something, and a one-year freeze will do it," she said.
Titus has advocated freezing property values throughout the session.
Also on Friday, Assemblywoman Sharron Angle, R-Reno, said she didn't have enough support to introduce a bill that would amend the constitution to create a property tax system similar to California's Proposition 13.
The measure would have rolled back tax values to 2003 levels and cap taxes at 2 percent a year. Angle said she couldn't find enough legislators to sign on in support, though she said she thinks there is broad public support for the idea.
Angle, who said she has been asked by supporters to run for Congress in 2006, said she would likely vote for the plan presented Friday because it would give immediate relief. But she would collect signatures to put her own amendment on the ballot in 2006.
"I don't think it (the front-running bill) is the remedy. I think Proposition 13 is the remedy," she said. "I will continue to pursue Proposition 13 because I think it's the remedy."
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