Tax talk stirs GOP governor hopefuls

Thursday, Feb. 16, 2006 | 12:33 p.m.

CARSON CITY - Lt. Gov. Lorraine Hunt wants to see the property tax paid by small businesses be limited to a 3 percent annual increase, as it is to homeowners.

State Sen. Bob Beers, R-Las Vegas, said he favors continuing the 3 percent property tax cap for homeowners.

Rep. Jim Gibbons, R-Nev., said he wants to make sure there is tax relief for people who really need it, singling out military veterans with disabilities and senior citizens who "are limited in their ability to earn income."

The three candidates for the GOP nomination for governor, appearing at a Republican Lincoln Day Dinner on Friday in Carson City, were questioned by reporters about whether they would continue to support the cap imposed by the 2005 Legislature on property taxes.

The law caps the annual property tax increase for homeowners at 3 percent and businesses at 8 percent.

Hunt said there "ought to be a level playing field" for small business.

"There are 60,000 small businesses in Nevada, and that 8 percent affects them drastically," she said, adding that those living in apartments don't get any relief.

The general belief is that the increase on apartment buildings is being passed on to renters. Hunt said she would try to change that law if elected.

She also said she opposed the proposed constitutional amendment by Beers to limit government spending to rate of inflation plus rate of population growth. And she's against the proposal by Assemblywoman Sharron Angle, R-Reno, that would amend the state Constitution to limit property taxes to a 2 percent per year increase.

Beers was the first to propose to the 2005 Legislature a rebate because the state had collected an unexpectedly large amount of taxes. Gov. Kenny Guinn worked with the Legislature on a plan to give anywhere from $75 to $275 to owners of motor vehicles or those with a state identification card who didn't own a car or truck.

Beers also proposed in August last year a suspension of the state's gasoline tax when the price per gallon skyrocketed. He unsuccessfully urged Guinn to call a special session of the Legislature or to issue an executive order to temporarily suspend the 17.65 cents per gallon state gasoline tax.

Gibbons on Friday said he was concerned "about a differential tax base where those people living in a commercial rental apartment are paying 8 percent and people who live in their own private homes are paying 3 percent."

"There is going to be an issue here," he said. "I don't know if the courts have looked at it yet," said Gibbons, who led a drive to amend the Nevada Constitution to require a two-thirds vote to pass any increase in taxes.

"It looks basically like there is a question that needs to be answered," Gibbons said.

Asked if he would support continuing the 3 percent cap on property tax, Gibbons said, "I'm looking at something along the lines of dealing with appraised value. That's what's killing us now."

Guinn, who leaves office next January, plans to build the state budget for presentation to the Legislature. He said his successor will be able to make changes to it.

Cy Ryan can be reached at (775) 687-5032 or at cy@lasvegassun.com.