Las Vegas Sun

May 5, 2024

Lawmakers leery of sales tax for water project

CARSON CITY -- After huddling with a casino lobbyist, Southern Nevada water officials are ready for a bill to be introduced that would raise sales taxes for a water project that costs twice what's been reported.

The cost of a second water pipe from Lake Mead to Las Vegas, and the water treatment facilities that go with it, are expected to reach $3 billion, said Richard Wimmer, spokesman for the Southern Nevada Water Authority.

That includes more than $1.7 billion for the pipe and $1.2 billion for treatment facilities, he said.

A bill was supposed to be introduced Monday asking legislators to impose a quarter-cent sales tax increase in Clark County to help pay for the project. Earlier news stories said the cost would be $1.7 billion, but Wimmer said Monday that figure does not include treatment facilities.

Wimmer said water authority officials asked that the bill not be introduced Monday so they could have more time to fine-tune the draft.

Wimmer and casino lobbyist Harvey Whittemore sat in the legislative cafeteria Monday discussing the bill.

Casinos are hoping the Legislature will impose the tax. The public or the Clark County Commission could approve it, but casino lobbyists think they have a better chance at the Legislature, where they wield more influence. Polls indicate that the public wants casinos to pay for growth. The County Commission has said it wants the Legislature to impose it.

Key legislators oppose the plan, however, saying they don't want to raise sales taxes at the legislative level without a public vote.

"My general feeling is that I'd like to see it go to a vote of the people," said Assemblyman Bob Price, D-Las Vegas.

Other legislators say privately that they don't want to get stuck with a tax vote on their record when the Clark County Commission should assume the burden.

Assemblyman Harry Mortenson, D-Las Vegas, and Sen. Ann O'Connell, R-Las Vegas, have requested legislative audits to assess whether the cost of the project is accurate and whether it can be completed without a sales tax increase. Clark, Churchill and Washoe counties have the highest sales tax in the state.

The bill is expected to be introduced Wednesday, said Assemblyman David Goldwater, D-Las Vegas, chairman of the Assembly Infrastructure Committee.

Hearings on the bill will begin Wednesday in Goldwater's committee.

Senate Minority Leader Dina Titus, D-Las Vegas, said she doubts the Legislature will vote to raise the tax.

She said she has a "sense" that most lawmakers would rather vote to give the Clark County Commission authority to raise the tax.

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