Senate approves plan for property taxes

Sen. Mike McGinness, R-Fallon, said SB476 is needed by several communities in rural counties such as Elko, Lander, Esmeralda, Pershing, Lyon and White Pine.

Many of the communities, which McGinness represents, are at or very close to the property tax limit of $3.64 per $100 of assessed property value but aren't growing or able to increase their revenue.

SB 476 would exempt state-imposed assessments for repayment of bonds or operating expenses from the $3.64 figure in counties whose tax rate was $3.50 per $100 of assessed value or higher as of June 25, 1998. The same exemption would apply to county-imposed increases of 50 cents per $100 of assessed value or higher.

In counties with a tax rate lower than $3.50, similar exemptions would apply but the county levy would have to top 75 cents per $100 of assessed value.

The legislation is the result of a recommendation by a legislative committee that was formed to study tax revenue distribution. The entities it affects are depressed, and the committee hoped to give them a chance to help themselves instead of continually asking the state for help.

The bill passed the Senate 18-3. Senators Dina Titus, D-Las Vegas, Mark James, R-Las Vegas and Mark Amodei, R-Carson City, were opposed.

Amodei said he understands the local financial predicaments but thinks the bill will bypass citizens' interests.

"The practical effect is that it allows a tax increase at the local government level," he said after the floor vote. "It overtly takes them out of the process.

"(A tax increase) ought to be something that has a little bit more resident participation than just finding out the Legislature voted and their taxes went up. It's kind of an innocuous way to play with their taxes. They should have the chance to go to public hearings and yell about it if they don't agree."

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