Las Vegas Sun

May 5, 2024

Tax equity plan will be revived

Clark County Commissioner Lance Malone has decided to retool a proposal to spend about $2.6 million in county revenue to help lower taxes in Las Vegas and North Las Vegas and bring the plan back to his fellow commissioners in a month.

The so-called "tax equity" plan developed behind closed doors with city officials was tabled by the commission earlier this week because two elements would have raised taxes in the unincorporated county.

Malone said Thursday he asked commissioners Bruce Woodbury and Yvonne Atkinson Gates, who participated in the closed-door meetings, if he could pick up the ball and run with it.

"If it goes as is, it won't get the votes," Malone said. "We're going to have to modify it, and that means taking out the tax increase elements."

Las Vegas City Councilman Matthew Callister said he was surprised by the decision to table the item. Malone said he saw Callister on Monday and told him it would be tabled for "the mere fact we didn't have the votes and I didn't want to see it killed."

Malone said he plans to go to Carson City next week to speak with Sen. Ann O'Connell, R-Las Vegas, and discuss possible ways to help reduce the tax rates in Las Vegas and North Las Vegas.

O'Connell, who chairs the Senate Government Affairs Committee, headed up an interim committee that studied the tax structure and revenue distribution among various entities.

Malone also said he will ask Assistant County Manager Randy Walker, another participant in the secret meetings, for his assistance.

"I'm doing everything possible for my residents," said Malone, whose district constituency is about 95 percent Las Vegas residents.

Malone, however, acknowledged that any plan has to be equitable for all county residents and acceptable to the majority of the board.

"I know how to count to four," Malone said, referring to the number of commissioners needed to get an agenda item approved.

The tax proposal included several elements that combined to lower the tax rate in Las Vegas by 29 cents for every $100 of assessed value -- a $126 savings for the owner of a $125,000 home.

Las Vegas officials contend the average city homeowner pays about $125 a year more than his county counterpart.

The largest savings would have come from merging city and county court functions -- $8 million that translated into a 13-cent tax rate reduction for city residents. The city would kick in another $5 million to lower the rate an additional 7 cents, and gaming revenues could be redistributed to lower the rate an additional 1.6 cents per $100 of assessed value.

But commissioners and county residents objected to two elements that would have raised taxes for county residents.

One, a shift in the Metro Police manpower formula, would raise taxes three-quarters of a cent for every $100 of assessed value -- about $3.30 for a $125,000 home.

The other, levying urban tax rates on county islands and using the revenue to help compensate Las Vegas for services provided in those areas, would have meant a $90 increase for about 3,000 homeowners.

If those items were taken out of the proposal, the tax cut for city residents would be only 22 cents per $100 of assessed value, or a savings of $96 for a $125,000 home.

"The 29 cents would have been ideal," Malone said. "If we can't get that, we should try to get as much as possible."

One misperception homeowners had is that the proposal to levy an urban tax rate on county islands was a bill draft request approved by the County Commission months ago, Malone said.

The commission is still pursuing legislation that would place an urban tax rate on county island residents and property owners. The tax equity proposal only recommends using revenue from the new taxes to offset paying the city $3.2 million to provide urban services to about 10,000 county residents living in the islands.

Walker said he would meet with Malone to discuss alternatives: "We'll work whatever we need to work up and see what happens."

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