Thursday, March 20, 1997 | 11:59 a.m.
CARSON CITY -- Gov. Bob Miller said he probably would not sign a bill raising the sales tax in Clark County by a quarter-cent to help pay for a $2.9 billion water system.
"It's very unlikely I would sign it," Miller said Wednesday. "My position is I don't support the Legislature imposing a tax for one county."
Miller said the Legislature, rather than increasing the tax itself, should vote to let Clark County officials decide whether to raise it.
"It should be enabling legislation," Miller said.
Clark County Commissioner Mary Kincaid, in Carson City Wednesday for a water hearing, said she would vote to raise the sales tax. Clark, Churchill and Washoe Counties have a 7 percent sales tax rate, the highest in Nevada.
Kincaid said her impression is that the six other commissioners would also vote for the increase, based on a resolution the commission recently approved supporting the tax hike.
"The reason I'd vote for the sales tax is that we'd have to increase the water rates," she said. "Seniors and people on fixed incomes can't afford that."
Casinos are spearheading a drive to raise $1.7 billion for a second pipe from Lake Mead to Las Vegas. It would be paid for with increased water rates, hookup fees and sales and excise taxes
Another $1.2 billion for water treatment facilities would also be funded in part by the sales tax increase.
A bill asking the Legislature to approve the water package, Assembly Bill 291, was introduced Wednesday and had its first hearing in the Infrastructure Committee.
It came under fire from Clark County residents, testifying by teleconference from Las Vegas, who said casinos should pay for growth.
"The casinos are causing all this growth," said Ken Brown, 75. "Why don't they pay for the increase?"
Brown said officials should slow the population growth. Las Vegas is the fastest-growing city in America, with an increase of 7-8 percent a year.
Another resident, Knight Allen, noted that Nevada's casinos pay only 6.25 percent on gross revenues, the lowest in the nation. Nevada-based casinos pay 20 percent on gross revenues in other states, but say they can afford it only because in those states there is virtually no competition.
"The only tax that should be on the table is the gross tax," Allen said. "This bill exists to make the rich richer and the potent more powerful."
Water officials noted that hotels and casinos use only 8 percent of the water in Southern Nevada, while residential use accounts for 64 percent.
Water authority General Manager Patricia Mulroy said the second pipe is needed to ensure reliable service. Only one pipe provides water to Las Vegas now.
"It's not for future growth," she said after the hearing. "It's for today's growth."
Casino lobbyist Harvey Whittemore said the gaming industry will continue to push the Legislature to raise the sales tax.
Miller's comments, however, could change that strategy. He also may have provided political relief for key legislators who have said privately and publicly that they don't want to impose a tax that citizens can't vote on.
Some legislators also said they don't want to be held accountable for a politically unpopular tax vote that the County Commission should shoulder.
The pipe is already under construction and would boost the county's population from 1.1 million to 2.5 million in about 20 years, according to state figures provided by the Southern Nevada Water Authority.
The funding package, including the sales tax hike, would remain in effect for about 28 years.
The monthly cost to someone making $30,000 annually would be $2.27 if sales taxes are included. The cost of a new house would rise by $25,000 in 30 years. Water rates would go up 72 percent in fewer than 10 years, from $1.43 in 1995 to $2.46 in 2004.
Also included in funding for the water pipe is an excise tax that would raise residential water rates by half a percent and commercial rates by 2 1/2 percent.
archive
