Senate’s assistant majority leader says tax increase unlikely in 2017

By Cy Ryan

Wednesday, July 22, 2015 | noon

A leader in the Nevada Senate said today that a tax increase in the 2017 Legislature was unlikely but that there could be jockeying among some businesses to lower their taxes, forcing others to pay more.

Assistant Majority Leader Ben Kieckhefer, R-Reno, told a group of developers that it would be “hard sell” to raise tax revenues in two years.

Also, the president of an economic consulting firm in Reno told the Northern Nevada Development Authority that only 8.2 percent of business entities would be hit by the new commerce tax based on a firm’s gross income.

Kieckhefer, chairman of the Senate Finance Committee, said it would be difficult to raise taxes in 2017 after the $1.1 billion increase this year.

He said it would take a two-thirds majority and that it would be “very unlikely.”

Kieckhefer wouldn't say whether he would run to be majority leader in 2017 if the GOP retains control of the chamber. “My caucus will make that decision at that time,” he said. When asked whether he would be a candidate, he repeated the same statement.

Majority Leader Michael Roberson, R-Las Vegas, is running for Congress next year.

Eugenia Larmore, president of Ekay Economic Consultants, said an analysis of the new commerce tax showed that the utility industry would be the hardest hit. She said the average bill would be $379,000. Some firms could be hit with a $4 million commerce tax, with a first payment due in July 2016, she said.

The next-highest commerce tax would be in the health care industry, but Larmore said Medicaid and Medicaid payments are not taxable so it would be difficult to accurately determine their average tax burden. The retail industry would be third-highest with an average tax bill of $41,000.