Lawmakers add pro-business amendment to Nevada tax bill

By Kathleen Hennessey
Associated Press Writer

CARSON CITY, Nev. (AP) -- A Senate panel Wednesday tacked on a pro-business amendment to a major property tax relief bill passed by the Nevada Assembly - bogging down efforts to get the plan to the governor's desk by Thursday.

The amendment, proposed by Sen. Warren Hardy, R-Las Vegas, and approved by Senate Taxation Committee members, would prohibit commercial property taxes from growing more than 8 percent a year.

Hardy's plan is an attempt to quiet the business lobby, which aggressively attacked the Assembly bill for giving more relief to residential properties than commercial properties.

The amended measure moved to the Senate floor after Sen. Sandra Tiffany, R-Henderson, failed to get support for her proposal to lower Hardy's tax cap to 3 percent - the limit placed on single-family, owner-occupied homes.

Under the Assembly-approved tax relief bill, commercial properties and non-owner occupied properties would see a tax reduction based on a 10-year average rate of increase or twice the cost-of-living increase, whichever is greater. That formula would result in average increases ranging from 8 to 13 percent.

Hardy's amendment replaces that calculation with an 8 percent ceiling. It does not change the 3 percent limit on increase for homeowners.

He said the flat cap would provide more predictability for small business and sufficient funding for school district and local government.

Hardy said his proposal wouldn't affect rural counties. He also said it would reduce the rate of growth in property tax revenue in Clark County and Las Vegas, adding, "Frankly, they ought to tighten their belts anyway."

If the amended bill passes the Senate, Assembly leadership said they're willing to consider the flat cap, but they want more details.

" Who really benefits?" said Assembly Majority Leader Barbara Buckley, D-Las Vegas, arguing that many business have not seen tax increases above 8 percent.

" I think it may be the vacant land held by speculators," Buckley said. "If the concern really is small businesses, couldn't we craft a way to provide relief to small businesses?"

Hardy's amendment will likely spark a bidding war with the Assembly, said Assembly Minority Leader Lynn Hettrick, R-Gardnerville. He said his primary concern is the bill's effect on local and school budgets.

" I don't have opposition to it, except they can't break the county governments, they can't break the distributive school account," Hettrick said. He added that if the impact is minimal it'll be hard for lawmakers to fight against a tax break for business.

" I don't see how you can say no," he said.

With an 8 percent cap, Clark County would get $4.9 million less in property tax revenue than under the Assembly bill. Las Vegas would see about $1 million less, Reno would get the roughly same amount of property tax revenue.

Under the Assembly bill, the state would have to pitch in $21.3 million to school districts to make up for lost revenue. Hardy's amendment would require another $10 million from the state.

Senate Minority Leader Dina Titus still plans to introduce her own amendment, which would freeze homeowners' tax bills for one year. She said she's doesn't know if it has votes to pass, but she'll use Wednesday's events to make her case.

" I'm going to shame them," she said. "I'll say, you'll give a break to big business and you won't give one to homeowners?"