Gibbons counts on tax increase, but won’t sign on to it

By Cy Ryan (contact)

Wednesday, March 11, 2009 | 2 a.m.

Despite counting revenue from a higher room tax in his proposed budget, Gov. Jim Gibbons distanced himself from the measure this week as the Senate debated and voted to approve the hike.

Dan Burns, Gibbons’ press secretary, said the governor will let the 3 percentage point increase become law without his signature. The governor did not support the petition, which was approved by voters in Clark and Washoe counties, and he opposes raising taxes, Burns said.

Gibbons, however, did include $290 million in revenue from the tax hike in his proposed budget for the next two years. Because of the tourism slowdown, the tax is now expected to yield $230 million.

During the Senate’s hearing on the room tax increase, which stretched over two years, the governor said he was pleased that lawmakers were asking a lot of questions.

Asked if he supported the increase, Gibbons said: “It’s up to the Legislature. First of all, I did not support that tax increase when it was voted on. But it’s part of the public support for raising it.”

Gibbons added: “Frankly, I’m kind of glad that there are some over there (in the Senate) who are reconsidering (that) the idea of raising taxes in an economic downturn is a bad idea.”

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Former Gov. Kenny Guinn will be one of 18 witnesses called by the state Ethics Commission during a hearing on whether Bob Loux improperly raised his salary while he was director of the state Nuclear Projects Office.

The commission set aside two days for the hearing, which begins Thursday, after an attempt to reach a settlement with Loux failed.

Most of the witnesses will be former chiefs of staff of governors or budget officials. Attorneys Tom Perkins and Judy Sheldrew, representing Loux, will call two witnesses who worked in the budget office or for the Legislature.

Patty Cafferata, executive director of the Ethics Commission, said Tuesday there are no last-minute settlement negotiations.

In his proposed settlement, Loux admitted he had raised his salary from $55 per hour to $63 in July 2007, leading to an overpayment of $16,444. Loux also changed his retirement so the state would pay the full monthly premium, which amounted to $12,922.

The state claims Loux had an authorized salary last fiscal year of $110,851, while earning $145,718. Before he resigned during the current fiscal year, he earned $151,542 against an authorized salary of $115,285.

Cafferata said the commission could impose a penalty of $5,000 to $25,000 for each “willful” violation. The commission could order Loux to pay back double the amount he received if it finds violations that were not willful.

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A bill introduced in the state Senate would require voters to show a government-issued ID before casting a ballot.

“There is always the potential for fraud and this decreases the opportunity,” said Sen. Maurice Washington, R-Sparks, who sponsored Senate Bill 181.

The bill would also move the primary election back to the first Tuesday in September. The primary is now held on the 12th Tuesday before the general election.

Washington said the Supreme Court upheld an Indiana law requiring that voters produce a photo ID at the polls.

To provide the public with free identification cards, an extra $2 would be added to the cost of a driver’s license. The cost of a license issued to motorists younger than 65 would rise from $18.50 to $20.50. The cost of a license for motorists 65 and older would remain $13.50.

The bill, which was referred to the Legislative Operations and Elections Committee, would require a two-thirds vote in the Legislature to pass because of the higher fee.