Las Vegas Sun

April 21, 2015

Currently: 69° — Complete forecast | Log in | Create an account

Should county go after $180 million appropriated by the state?

Some Clark County commissioners want to consider a lawsuit to recoup the funds

Steve Sisolak

Steve Sisolak

Tom Collins

Tom Collins

Sun Coverage

With the Nevada Supreme Court declaring unconstitutional the state’s pilfering of $62 million from a Southern Nevada water agency, some Clark County commissioners want to discuss whether to sue the state for the $180 million taken from county coffers in 2009.

“I’m definitely going to pursue this,” said County Commissioner Steve Sisolak, who has asked that the issue be placed on the agenda for Tuesday’s meeting. “We lost all this money and got nothing back. We owe it to the taxpayers to, at the very least, discuss it.”

In 2009, the Legislature approved numerous bills to take portions of the county’s property tax and other revenue totaling $197 million over two years. Lawmakers later approved an “excess government services tax” that reduced the losses to about $180 million.

Sisolak said he was emboldened by the high court ruling that lawmakers had no right to take $62 million banked by the Clean Water Coalition, a multijurisdictional agency created to build a pipeline to Lake Mead. The $850 million pipeline plan is dead.

The court said the Legislature is prohibited from enacting local and special laws for the assessment and collection of taxes for the state. The state constitution requires laws to be general and uniform throughout the state, the court said. According to the ruling, the Legislature violated the constitutional requirement when it singled out the Clean Water Coalition and took money collected only in Clark County.

Sisolak points out that when the state took the money two years ago, it singled out Washoe and Clark counties, but none of the local municipalities in Clark County got hit. “They didn’t take from Henderson or Las Vegas or North Las Vegas, just the taxpayers of unincorporated Clark County,” he said.

Not everyone agrees, however, that commissioners should sue — or even talk about suing. There is the possibility of political retribution by legislators who have never held Clark County in high regard.

“It’s not like the Legislature is ever going to do it again,” one political observer said on condition of anonymity. “But why piss them off in the last stage of the legislative session?”

Unions are also looking into a lawsuit. Nick Di Archangel, spokesman for the Service Employees International Union, which represents county employees, said his union supports the county considering a lawsuit. Other public employee groups, he added, have begun researching the possibility.

Commissioner Tom Collins said he welcomes the discussion, but he’s likely to oppose any legal action. Although he agrees the state “messed up” by taking the money only from Clark and Washoe counties, the former assemblyman thinks tax legislation approved 30 years ago allows the state to take “uncommitted” tax dollars, those not specifically designated to a program or project.

And, he added, the “last thing (state legislators) want is for Clark and Washoe to sue them.” He can envision payback from the state in the form of “dumping a bunch of programs back on the counties to offset their losses.”

Collins said he is going to use the discussion of a lawsuit to bring up an unpopular topic — that instead of suing the state, Clark County can raise the property tax rate to prop up its budget.

Property taxes in Nevada are calculated on a rate per $100 of assessed value, which is about 35 percent of a home’s salable value. The current rate is $2.94 per $100. Raising the rate 5 cents on a $150,000 home ($52,500 assessed value), would increase taxes $52.50 a year.

Such taxes pay for police, fire, animal control, juvenile services and graffiti control among other services. “At some point our constituents will say enough cuts in services and they will be willing to pay to avoid more reductions,” Collins said.

Sisolak said in a previous meeting that he would not support a property tax increase at a time when so many county residents are struggling financially.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy

Previous Discussion: 8 comments so far…

Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.

Only trusted comments are displayed on this page. Untrusted comments have expired from this story.

  1. That's a lot of money. They should sue.

    What happened to "tax predictability?" Wasn't that a big Republican issue? at the National level at least?

    For a couple of people to come out of a think tank/PR firm, or whatever it is, (Dale and Sandoval) then to botch this tax issue with a bunch of back peddling and double talk, makes one wonder how great that company is at doing what they are supposed to do.

    A Judge and former AG should know that budget maneuvers can end up in court. Wasn't Sandoval there when Guinn did his tax deal because the courts said "education first" and of course throwing out the State Constitution.

    Doesn't seem like Sandoval & friend deserve much of a grade for their performance on this issue.

  2. The County should sue and when redistricting is finalized the FIRST bill sponsored by Clark County for the NEXT legislature should be Fiscal Home Rule for counties over half a million in population.

  3. Is the same percentage of tax revenues taken equally from all Counties or just Clark?

    What will businesses do in Clark County when their taxes are raised to pay booty for the entire State?
    This does not create a business friendly environment.

  4. There has never been a better time to discuss the elephant in the room: secession. It's time to explore making southern Nevada into South Nevada.

  5. So Tom Collins wants to ignore that the State stole money from the tax payers of clark county and rather than ask for it back he would prefer to raise property taxes? People are having their wages cut, people are out of work and rather than ask for what was unlawfully taken he wants the burdon on us? The man is a lunatic.

    James P Reza - you are right. Southern Nevada is being taken advantage of and needs to secede from the rest of the state. Let the rurals support themselves. I am tired of this right wing socialist state.

  6. It is no secret (at least if you dwell in Northern Nevada), of the unmitigated hatred those who reside in Northern Nevada, have towards those living in Southern Nevada. Bring it up in any conversation there, and watch the fireworks anytime of the year! If Rhode Island can change, so can Nevada!

    It was WRONG WRONG WRONG of the State of Nevada to take a local and specifically written tax from the Clean Water Colialition for the Lake Mead pipeline project! This action should trigger plenty of lawsuits, including what has happened to Nevada workers.

    It is obvious that laws that were good 30+ years ago, may NOT serve the People of Nevada now, in modern times. Nothing is static, unless it/you're dead. Hence, why the law allows revisiting and amending laws and policies in the course of business during a LEGISLATIVE SESSION...we hope. But where the majority of the time is spent with 2 party bickering and political posturing, little gets done, and what is done, is SHODDY WORK!

    NO ONE, NOT ONE LAWMAKER NOR GOVERNOR should be celebrating this piece-meal mess that will require fixing next time around! Take a bow for making some progress, and get back to work! Thanks for making the efforts!

  7. I like how Collins takes the longer view. Between him and Sisolak it would seem we have good county leadership.

    "There has never been a better time to discuss the elephant in the room: secession. It's time to explore making southern Nevada into South Nevada."

    James_P -- I'd propose callling the new state something more apt, like "Sin" or "Sinners Welcome." Then sit back watch the religious zealots freakshow! I'd buy that for a Dollar!

    "The greatest tragedy in mankind's entire history may be the hijacking of morality by religion." -- Arthur C. Clarke, 1999, from "God, Science, and Delusion: A Chat With Arthur C. Clarke" in Free Inquiry magazine

  8. "Collins said he is going to use the discussion of a lawsuit to bring up an unpopular topic -- that instead of suing the state, Clark County can raise the property tax rate to prop up its budget."

    So if I read this right instead of sueing the state they want to raise property taxes to offset the loss. Mr Collins this would be a grave error on your part. I hope U have another job lined up.

    Remember the fire fighters are county employee"s so there is plenty of room to cut.