Las Vegas Sun

March 29, 2024

Sandoval says he opposes business-tax initiative, wouldn’t sign it

Gov. Brian Sandoval

Gov. Brian Sandoval

Gov. Brian Sandoval says he hasn't been asked but if asked he would not sign the initiative petition to impose a business tax.

"I don't support initiative petitions to raise taxes," the governor told reporters Wednesday. They haven't worked in California and Nevada, he said.

The Nevada State Education Association has filed an initiative petition to impose a 2 percent business tax. It would be levied on companies that make more than $1 million. Casinos are given credit for the gross gaming tax paid to the state.

By Nov. 13, supporters must gather the signatures of 72,352 voters to put it before the 2013 Legislature. And there must be 18,088 signatures in each of the four congressional districts.

Danny Thompson, executive secretary-treasurer of the Nevada AFL-CIO and one of the sponsors of the tax petition, said he did not think Sandoval's opposition will have any impact on the effort to collect the names.

But Thompson said a legal challenge to the petition is expected. Opponents of petition have 30 days from the time the petition was filed earlier this month to file suit, and Thompson said there will be a legal challenge "as sure as the sun comes up."

Sandoval repeated his previous statements that he doesn't back a business tax.

The state owes the federal government $800 million that was borrowed to pay unemployment checks when the state ran out of money.

The business community, the governor said, will have to repay that debt.

The state is looking at issuing bonds to pay the debt. Bonds may carry a lower interest rate than charged by the federal government.

The state Board of Examiners this month approved payment of $63.9 million in interest payments to the federal government for the money borrowed.

Thompson said the drive to gather the signatures is just starting, and he doesn't think there will be any trouble getting the signatures. "People are tired of having the fifth-largest school district in the country and only a 65 percent graduation rate," he said, referring to the Clark County School District.

He said the governor should persuade his "useless conservative Republicans" in the Legislature to support the petition. The tax system is broken and people know it, he said.

If the petition survives a legal challenge and gets the required signatures, it will be submitted to the 2013 Legislature. And if it fails there it will be placed on the 2014 election ballot.

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