Wednesday, May 26, 1999 | 9:12 a.m.
The measure, sponsored by conservative Assemblyman Don Gustavson, R-Sun Valley, would've rolled back Nevada's property tax rate to mid-1990 levels, set the rate at 1 percent of taxable value, and limited any annual increases to no more than 2 percent of that value.
Gustavson had argued that his proposed constitutional amendment would have helped current property owners by basing taxes on acquisition value, and not on a fluctuating real estate market.
"It's based on what you sell your home for, not what your neighbor sold their home for," Gustavson told the Taxation Committee when the bill was heard the first time around.
But committee members voted Tuesday to kill AJR17 after critics said it would cost the state $200 million over five years and could bankrupt local government budgets.
The measure would also prevent any future hike in the real estate transfer tax, which counties dip into for specific spending projects.
The tax plan would substantially limit the tax bases of Nevada counties, said Assemblyman John Marvel, R-Battle Mountain.
Lawmakers need to focus on creating a stable tax base "to keep our counties alive," Marvel said.
AJR17 would have also based property taxes on the original sale price of a home, and not on a periodic review of market value.
Also, seniors would have been able to transfer the assessed value of their old home to any they moved into, regardless of the purchase price, and any property tax increases or additions could only have been enacted by a two-thirds majority vote in a countywide election.
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