State board OKs $500,000 for tax study, Gibbons dissents

Tuesday, Oct. 13, 2009 | 12:42 p.m.

CARSON CITY – The state Board of Examiners, in a 2-1 vote with Chairman Gov. Jim Gibbons dissenting, recommended $500,000 be set aside to hire a consultant to help with a legislative study of Nevada’s tax system and if it should be changed.

Gibbons called it a “carte blanche” amount since the contract hasn't yet been awarded. The eight bids for the contract ranged from $32,200 to $909,861.

Secretary of State Ross Miller, in moving for approval of the $500,000, said he “didn’t want to stand in the way” of the Legislature moving quickly. He and fellow Democrat Attorney General Catherine Cortez Masto voted to approve the amount.

Lorne Malkiewich, director of the Legislative Counsel Bureau, told the board the legislative committees conducting the study want to move quickly. A working group of the Legislature meets Thursday and it may select the contractor.

But Gibbons said it was “incumbent” on legislators to select a contractor before coming to the examiners board and asking for an amount not yet decided on.

“It’s a little premature to be before us,” he said.

Gibbons recommended that board defer the item until a contractor is selected. But he was voted down by the two Democrats.

The Legislative Interim Finance Committee meets Nov. 19 to formally approve the contract of the consultant. And it can approve any amount of money, even up to the $909,861, without board of examiners approval, said Andrew Clinger, director of administration and budget director.

Clinger said the examiners board has a meeting Nov. 10 and the amount could be approved then. And it would still be in time for the Nov. 19 Interim Finance Committee.

The study was approved by the 2009 Legislature, which had to raise taxes to fund services and reduce government programs. It will review proposals for “broad based taxes which are fair and equitable” and it will look at improving public services.

The report of the consultant is due in July next year.

After the meeting Gibbons questioned why the state would spend $500,000 to come up with “a pre disposed conclusion.” He said there would be a recommendation for a broad-based tax.

He said it might be for an income tax as other states have. He “totally disagrees” with installing a broad-based tax, he said.

“We don’t have a tax problem,” he said. “We have a spending problem.”

The resolution calling for the tax study was sponsored by Las Vegas Democrats Senate Majority Leader Steven Horsford and Assembly Majority Leader John Oceguera.

Discussion: 12 comments so far…

By Patrick_R_Gibbons

10/13/09 at 1:29 p.m.

Suggest removal

They can spend $500,000 to fund a tax study but not the $200,000 necessary to put the government checkbook online so we can all see how they are spending our money?

At any rate, check out the spending problem here: http://npri.org/publications/legislature...
By afveteran

10/13/09 at 4:42 p.m.

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Why do we taxpayers need to spend "any" monies for a study on the tax system? Leave the tax system alone, and live with the revenue it brings in. Then if the budget is exceeded, shut down the government except for public safety services.
By wizardofOz

10/13/09 at 5:52 p.m.

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I agree, ALL the spending should be online, and so should

ALL THE CAMPAIGN CONTRIBUTIONS, (oops, that one already is).

As far as shutting down the "gov'ment", well, my spelling says it all... (Hale noo, we dowwnt need no edjicashun, pass me thaat-theyrre clay, an' a forrk)
By afveteran

10/13/09 at 7:12 p.m.

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Less government means less money taken from those that fuel the free enterprise system, and help pay for widows, orphans, seniors, and handicapped folks. Let's return this bureaucratic monster back flea size as it was in the pre-1900's.
By wegoaxleguard

10/13/09 at 7:21 p.m.

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and the problem with Gibbons is WHAT?

Gibbons, I don't like you, think your inept, but I applaud you for stopping or trying to keep these bastards from spending money.

By the way, you would do a better job then Ensign, appoint yourself.
By Harley

10/13/09 at 9:46 p.m.

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"The avoidance of taxes is the only intellectual pursuit that carries any reward". - John Maynard Keynes

: )
By RustyShackleford

10/14/09 at 12:14 a.m.

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"A Democratic government is the only one in which those who vote for a tax can escape the obligation to pay it."
--Alexis de Tocqueville
By afveteran

10/14/09 at 7:26 a.m.

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"Conservatism in politics and in a person's life is the key to the successful pursuit of happiness and wealth."
---afveteran, 2009.
By geezelouise

10/14/09 at 7:43 a.m.

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Gov Gibbons,

I agree with wegoaxleguard. I don't like you but here lately you seem to be acting like a Governor. What a concept.

Keep pusing at the IFC we all know it is unconstitutional. And stop letting the out of control legislators have their way all the time.

We don't need another tax study. There are two of them already collecting dust in the state capital.

Use what you have. Don't spend more tax dollars for a new and improved version of the SOS.
By LarryVegas

10/14/09 at 12:43 p.m.

Suggest removal

The State plans to spend $500,000 to hire a consultant to help with a legislative study of Nevada's tax system and if it should be changed.

Maybe before the State spends $500,000 for that study, they need to fund a study to see if the other study is necessary...
By afveteran

10/14/09 at 3:39 p.m.

Suggest removal

Why spend any money for a useless endeavor? The tax system just needs tweaking down.