Veto overrides ensure state funding

By Cy Ryan

Published Sunday, May 31, 2009 | 8:42 p.m.

Updated Sunday, May 31, 2009 | 9:58 p.m.

CARSON CITY – The bill carrying the bulk of the $6.9 billion spending for state agencies for the next two years has received its final approval in the Nevada Legislature.

The Senate has voted 17-4 to override Gov. Jim Gibbons' veto of Assembly Bill 562. The Assembly earlier had disapproved of the governor’s veto.

To help the state pay for its budget, the Legislature also has passed Assembly Bill 543 to take 4 cents of the property tax now being received by Clark and Washoe counties. It would mean a loss of more than $30 million to Clark County alone.

The Senate approved 15-6 to override the governor’s veto of the plan by the state to take money away from local government to help the state out of its financial dilemma.

The Assembly had earlier voted 33-9 to override the governor’s veto on the tax shifting bill.

The Senate also voted to give final legislative approval to allowing the secretary of state to establish a business portal to ease the conduct of transactions between business and government agencies.

The secretary of state, under Assembly Bill 146, would take over some of the duties of the state Taxation Department.

The Senate voted 17-4 to override Gibbons’ veto. All of these bills now become law, despite the disapproval of the governor.

Sunday's final override action in the Senate on the budget and tax measures follows the lawmakers' decisions on Friday to go against the governor and give final approval to SB429,a $781 million tax increase plan.

Also overridden on Friday was the governor's veto of SB431, a key budget measure which spells out how most non-state general fund money, about $12 billion, mainly in federal dollars, will be spent.

Gibbons has termed the tax plan, which increases sales taxes, business levies and license fees, and vehicle registration fees, "foolish and shortsighted" and "a job-killing, economy-crushing insult to the people and hardworking families of Nevada."

Under SB429, the state's 6.5 percent sales tax would increase by 0.35 percent; and payroll taxes, now at 0.63 percent, would increase to 1.17 percent for firms with payroll of more than $250,000 a year. The rate drops to 0.5 percent for companies with payrolls under $250,000.

The Associated Press contributed to this story.