MINUTES OF THE
	SENATE COMMITTEE ON TAXATION

	Sixty-eighth Session
	June 23, 1995

The Senate Committee on Taxation was called to order by Chairman Sue Lowden, 
at 5:30 p.m., on Friday, June 23, 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 Dean A. Rhoads
Senator John B. (Jack) Regan
Senator Ernest E. Adler

COMMITTEE MEMBERS ABSENT:

Senator Kathy M. Augustine, Vice Chairman (Excused)
Senator Ann O'Connell (Excused)
Senator Randolph J. Townsend (Excused)

STAFF MEMBERS PRESENT:

Kevin Welsh, Deputy Fiscal Analyst, Fiscal Analysis Division
Kathy E. Cole, Committee Secretary

OTHERS PRESENT:

Carole A. Vilardo, Lobbyist, Nevada Taxpayers Association

Chairman Lowden opened the hearing on Assembly Bill (A.B.) 656.

ASSEMBLY BILL 656:	Extends exemption from taxation for veterans of Persian 
				Gulf Crisis to all veterans who served on active duty 
				during crisis.  (BDR 32-1915)
 
Chairman Lowden informed the committee that this bill is a "judgment call" 
because the legislators have exempted the veterans from every other war.  The 
veterans have come forward and asked to include the latest war, which would be 
the Persian Gulf.  Further, the senator said there was a big fiscal note attached. 
 

Carole A. Vilardo, Lobbyist, Nevada Taxpayers Association, said:


The fiscal note that had the impact that was legitimately in the 
millions was if you had raised the exemption from $1,000 to $2,000. 
 What happens on this one is that you are extending it to those people 
who were called up in the gulf crisis as distinguished from those who 
were on active duty during the gulf crisis.  The assessors had testified 
to this bill on the other side; but they have a problem in determining 
who was whom...  How do they know if they were on active duty or 
not?  From the assessors point of view this would make their life 
much easier, so, they supported it... It would be an easier bill right 
now...

A general discussion ensued whereby more questions were raised with regard to 
who would be entitled to the exemption.  Kevin Welsh, Deputy Fiscal Analyst, 
Fiscal Analysis Division, was asked to explain the bill further.  He said, "The 
problem we have is threefold.  Number one when they said, `theater of operations' 
there is no definition for theater of operations... The second problem is, the fiscal 
note. [Thirdly,] we don't know how many veterans are currently living in Nevada 
 and how many current veterans would take advantage... "

In the discussion that followed Mr. Welsh's testimony, it became apparent that this 
bill would indeed pose some problems and with its large fiscal note it could be 
viewed as a "window of money" according to the chairman.  

Ms. Vilardo said that the Nevada Taxpayers Association opposes this bill and 
Senator Adler suggested that it would have been better to have written the 
veterans a check because we think they are "worthy of this gift."

Senator Lowden indicated that we cannot turn back at this point to do just that. 
Senator Regan emphasized that we do at this point have "great hindsight."

The discussion continued with several points being made by the committee and Ms. 
Vilardo.  Accordingly, they opened the meeting to ideas about veterans, their 
needs, the fiscal note, and how the bill would better be served as a vehicle to 
raising funds for a possible "veterans' home" through exemptions. It was 
suggested by Senator Adler that "they could float a bond" to build the home as a 
result of "the predictable funds coming in."


Senator Lowden wanted to know from the veterans who were members of this 
committee how they would feel helping finance a veterans' home through tax 
exemptions.  It was agreed by all that it would be an excellent idea.  Further, Mr. 
Welsh and Senator Regan agreed that if they could take their exemptions off their 
homes and apply it toward a veterans' home they would do so.

The discussion continued.  Chairman Lowden informed the committee there would 
not be any action taken on this bill as the other committee members wanted to 
vote on it.  The meeting was adjourned at 6:00 p.m.

RESPECTFULLY SUBMITTED:




Kathy Cole,
Committee Secretary

APPROVED BY:




Senator Sue Lowden, Chairman

DATE: 						

Senate Committee on Taxation
June 23, 1995
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