Sandoval’s tax plan clears first hurdle

By Cy Ryan

Tuesday, March 31, 2015 | 4:55 p.m.

CARSON CITY — Gov. Brian Sandoval’s plan to raise taxes $483 million over the next two years survived its first test in the Legislature Tuesday.

The Senate Committee on Revenue and Economic Development voted 4-3 along party lines to send the bill to the floor of the Senate.

Senate Majority Leader Michael Roberson, R-Las Vegas, urged committee members to put aside partisanship and support the bill. He said the Republican governor showed courage in developing the plan and the Legislature now must lead.

But Senate Minority Leader Aaron Ford, D-Las Vegas, said local businesses still have questions and “we need more information.”

The bill just made Roberson's March 31 deadline to advance in the Legislature.

Republicans hold an 11-10 majority in the Senate but 14 votes are needed to gain passage. Democrats on the committee were unanimously opposed to the plan, with Sen. Aaron Ford saying lawmakers needed more time to hear from constituents. Some Democrats will have to break ranks to get the measure approved.

The governor's proposal is detailed in Senate Bill 252 and would restructure the state's flat business license fee into a tiered system with rates ranging from $400 to $4 million annually. Sandoval said the plan would raise around $437 million over two years to help fund K-12 education.

Sen. Greg Brower, R-Reno, said he is “confident they (the Democrats) will see the light” and join in approving SB-252.

This committee, he said, has spent an unprecedented amount of time in discussing and hearing testimony on the legislation.

Sen. Pat Spearman, D-Las Vegas, has presented al alternative bill that raises the same money. She said she was not ready to support the plan of Republican Gov. Sandoval.

Sen. Ruben Kihuen, D-Las Vegas, said there are other tax proposals before the Legislature and it would be “highly irresponsible” to choose one now.

Sen. Joseph Hardy, R-Boulder City, said this Legislature has to do something for education and this is the best tax plan in the Senate.

The Associated Press contributed to this report.