Las Vegas Sun

May 18, 2024

Governor ready to retool tax system

Gov. Kenny Guinn wants to revamp the state's approach to funding and is calling for a meeting in March with various state and private organizations to discuss the existing tax system and find ways to improve it.

During an interview Friday on "POV Vegas," the Las Vegas Sun's news discussion show, which can be seen on Channels 1 and 39, Guinn said the state looks at its budget every two years when it should be looking at projections of up to eight years.

"Part of what's wrong with our taxation system in Nevada today is that every two years we go to the legislative body, pick off one particular area and say this is what we need and grab it, and we don't know how it's going to affect us without projections," Guinn said.

The governor's comments came in response to a question by host Mark Shaffer about two state initiatives by petitioners seeking increases in gaming and business taxes. The Nevada State Education Association is pushing an initiative to impose a business profit tax of 5 percent. State Sen. Joe Neal, D-North Las Vegas, seeks an initiative to raise the gaming tax.

Guinn, who opposes both moves, called taxation by petition very limiting.

He said it is more important to look at the entire spectrum of revenue sources and expenditures and to make adjustments as needed to create a budget.

"What I've committed to do," Guinn said, "is to go through the structure (of state government), looking at all government functions in the state of Nevada."

In the months ahead, he said, he will look at what the state should be doing and what it is doing that it should not be doing. He will look at programs that may need to be eliminated and what priority programs should be given.

Guinn said he intends to develop an eight-year plan and present it to the public around March 1.

"We will roll up costs for an eight-year period, with long range plans and projections, and have a model ready to go," he said. "We will project our revenue stream, take expenditure projections and if there is deficit, then look at what we want to cut out. Then we will come together and say, 'How are we going to bring about the revenue stream over eight years?' "

He said he will gather various groups, such as the Nevada Taxpayers Association, chambers of commerces, teachers organizations and gaming associations, to discuss the plan and give input.

In other comments during Friday's interview, Guinn, who leads Gov. George W. Bush's presidential campaign in Nevada, says he doesn't believe gaming will be a major issue in next year's presidential race.

He said Bush has rejected gaming for Texas, where he is governor, but is not opposed to gaming overall.

In addition, Guinn said, Bush has asked for more information about Yucca Mountain and the issue of nuclear waste storage.

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