MINUTES OF THE SENATE COMMITTEE ON TAXATION Sixty-eighth Session June 15, 1995 The Senate Committee on Taxation was called to order by Vice Chairman Kathy Augustine, at 3:00 p.m., on Thursday, June 15, 1995, in Room 224 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Attendance Roster. COMMITTEE MEMBERS PRESENT: Senator Sue Lowden, Chairman Senator Kathy M. Augustine, Vice Chairman Senator Ann O'Connell Senator John B. (Jack) Regan Senator Ernest E. Adler COMMITTEE MEMBERS ABSENT: Senator Dean A. Rhoads (Excused) Senator Randolph J. Townsend (Excused) STAFF MEMBERS PRESENT: Kevin Welsh, Deputy Fiscal Analyst, Fiscal Analysis Division Kathy Cole, Committee Secretary OTHERS PRESENT: Frank Barker, Lobbyist, Las Vegas Metropolitan Police Department (METRO) Jerry Keller, Sheriff, Las Vegas Metropolitan Police Department (METRO) Carole Vilardo, Lobbyist, Nevada Taxpayers Association (NTA) Marvin Leavitt, Lobbyist, City of Las Vegas Katherine Ong, Lobbyist, Clark County Lucille Lusk, Lobbyist, Nevada Concerned Citizens (NCC) Charles Joerg, Lobbyist, Nevada Manufactured Housing Association John Bartlett, Senior Deputy Attorney General, Taxation Section, Office of the Attorney General Peter Krueger, Lobbyist, Nevada Petroleum Marketers Association Senator Augustine opened the hearing on Senate Bill (S.B.) 336. SENATE BILL 336: Provides that proposal for imposition of ad valorem tax for additional officers may be submitted to voters of areas where metropolitan police department has been created. (BDR S-1890) Frank Baker, Lobbyist, Las Vegas Metropolitan Police Department (METRO), testified he and Sheriff Jerry Keller have come to explain the need for this bill. Jerry Keller, Sheriff, Las Vegas Metropolitan Police Department (METRO), told the committee METRO is asking for the authority to be able to go to the communities, on even numbered election years to seek funding for additional police officers in the METRO jurisdiction. Carole Vilardo, Lobbyist, Nevada Taxpayers Association (NTA), testified the NTA does not like the way the bill is written. Both the sheriff's office and METRO are funded out of the taxes now. She said the citizens of the state have supported requests for additional funds in the past. This bill will leave it open- ended for METRO to ask for additional taxes at any time without a vote from the citizens. Mr. Keller responded they will put the dollar figure on the ballot question and the people will have a vote in the even election years. He stated that the community will double with growth in the next 15 years and that violent crime is up 23 percent in the Las Vegas area. Senator Augustine noted that there needs to be a number limit in this bill. Senator Regan said Mr. Keller is defending the actions of two councils he has nothing to do with. Mr. Keller said a subcommittee has been formed between the city, the county, and METRO to look at funding formula issues. Senator Regan responded that in looking at the ballot, the people in each community need to be told "this is your tax rate," and that is not his job. The county and city need to write the ballot correctly so the voters do not think they are getting something they are not getting. Senator Adler said he does not want to see the sheriff having to come back to the committee every 2 years to ask for permission to do this. The way the bill is written now allows the sheriff to put together a ballot question to ask for this funding. Ms. Vilardo said the bill should be written so that the ballot has a specific ballot question to tell the amount of dollars needed. Senator Augustine stressed there needs to be a cap amount per $100. Mr. Keller testified he does not know how many police officers he will need. Senator Adler commented that the Legislature cannot continue to run county government every 2 years. Marvin Leavitt, Lobbyist, City of Las Vegas, said the basic problem needs to be evaluated and then an amount can be levied. The two rates need to be evaluated so the voters can be provided with enough information to be able to judge the needs. Katherine Ong, Lobbyist, Clark County, testified that the county has no problem with this bill. Senator Augustine asked if all the people concerned could get together and come up with the language necessary to make the bill workable. Lucille Lusk, Lobbyist, Nevada Concerned Citizens (NCC), testified the people need to know what they are voting on She said she agrees with Sheriff Keller that there cannot be a specific number of officers put into the request. Criteria for a ballot question should indicate a maximum amount a citizen will pay, the term of the tax. She added that type of criteria should be included in the bill. Senator Lowden postponed the hearing on S.B. 336 until further information could be provided and opened the hearing on S.B. 490. SENATE BILL 490: Proposes to exempt certain modular homes from taxes on retail sales. (BDR 32-1408) Charles Joerg, Lobbyist, Nevada Manufactured Housing Association, gave the committee proposed language for the bill (Exhibit C) which changes the definition of a manufactured home. John Bartlett, Senior Deputy Attorney General, Taxation Section, Office of the Attorney General, said he has examined the language Mr. Joerg had suggested. He suggested that the definition be changed and that will solve the problem. SENATOR O'CONNELL MOVED TO AMEND, WITH THE DEFINITION, AND DO PASS S.B. 490 SENATOR ADLER SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS RHOADS, TOWNSEND AND REGAN WERE ABSENT FOR THE VOTE.) * * * * * Senator Lowden refreshed the committee's memory on the prior discussion on S.B. 324 with two amendments. SENATE BILL 324: Increases fees for certain petroleum products. (BDR 51-1306) Peter Krueger, Lobbyist, Nevada Petroleum Marketers Association, testified all the language having to do with the proposed underground tank bill needs to be deleted and amend the bill to include the airport portion only. Senator Adler asked why Mr. Krueger is asking the committee to do this? Mr. Krueger said due to the lateness in the session, and the bill not doing what the petroleum association wants it to do, it is best to leave them out of the bill at this time. He said the little businessmen cannot afford the deductible proposed in the bill. Senator Lowden said she thought the amount from the cleanup will just take longer to pay. Mr. Krueger said it will take longer for the public to get their money back for the cleanup of the leakage from the underground tank funds. He said they are withdrawing their support of the bill. Senator Lowden asked the committee for a motion. SENATOR AUGUSTINE MOVED TO RESCIND PREVIOUS ACTION ON S.B. 324. SENATOR O'CONNELL SECONDED THE MOTION. Senator Adler asked to hear from other groups before this motion is voted upon. Senator Augustine said she had talked with Jan Needham in the Legislative Counsel Bureau's bill drafting department. She said Ms. Needham's opinion is that there is no need for a motion to rescind a bill because it has not gone to the floor. SENATOR AUGUSTINE MOVED TO AMEND AND DO PASS S.B. 324 DELETING THE INCREASE IN THE GASOLINE FUEL TAX, ET AL., AND LEAVE IN THE AVIATION FUEL REDUCTION. Senator Lowden asked for a real reading on this. She suspended the discussion on S.B. 324, and reopened the hearing on S.B. 336. Mr. Leavitt said the language they have come up with will be inserted into the bill on line 22 saying: In developing the valid question, the governmental body shall include information regarding the methodology to be used to allocate costs and how the ad valorem tax rate is to be determined for each fiscal year. The question presented to the voters in each entity shall state initial ad valorem tax rate and a declaration that the rate may change over time with changes in the distribution formula and a relative assessed valuation of the respective entities. SENATOR REGAN MOVED TO AMEND AND DO PASS S.B. 336. SENATOR O'CONNELL SECONDED THE MOTION THE MOTION CARRIED. (SENATORS RHOADS AND TOWNSEND WERE ABSENT FOR THE VOTE.) * * * * * Senator Lowden asked if the amendment language is ready for S.B. 320. SENATE BILL 320: Increases statutory limit on total rate of taxes ad valorem. (BDR 32-607) As the amendment language was not ready Senator Lowden opened the hearing on Assembly Bill (A.B.) 333. ASSEMBLY BILL 333: Revises provisions relating to privilege tax imposed on vehicles. There was no discussion of the bill. SENATOR O'DONNELL MOVED TO DO PASS A.B. 333. SENATOR REGAN SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS RHOADS AND TOWNSEND WERE ABSENT FOR THE VOTE.) * * * * * Senator Lowden reopened the hearing on S.B. 324 saying the committee has received a request to withdraw the original bill. The bill had been amended to decrease the tax on the fuel for aviation. She said the request is to amend the part of the bill that increases the taxes and keep the portion to decrease the taxes for aviation fuel. SENATOR AUGUSTINE MOVED TO RESCIND THE ACTION ON S.B. 324. SENATOR O'CONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATOR ADLER VOTED NO. SENATORS RHOADS AND TOWNSEND WERE ABSENT FOR THE VOTE.) * * * * * SENATOR AUGUSTINE MOVED TO AMEND AND DO PASS S.B. 324 BY DELETING SECTIONS 1 AND 2 DEALING WITH THE INCREASE IN GASOLINE TAX, AND LEAVE IN THE REDUCTION IN AVIATION FUEL TAX. SENATOR O'CONNELL SECONDED THE MOTION. THE MOTION CARRIED. (SENATORS RHOADS AND TOWNSEND WERE ABSENT FOR THE VOTE.) * * * * * Hearing no further testimony on any of the bills, Senator Lowden adjourned the meeting at 4:00 p.m. RESPECTFULLY SUBMITTED: ______________________________ Diane Rea, Committee Secretary APPROVED BY: _____________________________ Senator Sue Lowden, Chairman DATE: ______________________ Senate Committee on Taxation June 15, 1995 Page