Tuesday, May 20, 2003 | 9:45 a.m.
CARSON CITY -- Little by little, lobbyists and even lawmakers are beginning to get a glimpse of the tax that some believe will allow the Legislature to adjourn not only without a special session, but two days early.
It is called the UBT -- and some Democrats working on the proposal say the initials stand for the Unified Business Tax. On Monday, Sen. Randolph Townsend, R-Reno, hinted at the measure's potential, calling it the Universal Business Tax.
Losing the hated gross receipts name was the first step. But it is similar to the broad based business tax proposed by the Nevada Task Force on Tax Policy and included in Gov. Kenny Guinn's nearly $1 billion tax plan.
But what is it?
Townsend merely hinted at it Monday when unveiling his own total tax plan that would yield $1.3 billion over the next two fiscal years.
The UBT will bring in $75 million in 2004, Townsend said, and another $140 million in 2005.
Townsend was mum on specifics Monday, and sources said he was simply trotting out the plan to give its basic premise time to sink in before the UBT is officially included in a major tax plan and brought for a vote.
The idea of the UBT is to provide extra care for the low margin businesses which grumbled about the one quarter of one percent gross receipt tax planned for companies grossing over $450,000.
The UBT would give a business a choice. Pay a modified version of the gross receipts, which would be capped to prevent any business from paying more than a set amount.
The other option would be to pay a percentage tax on the company's gross less certain expenses. The whole tax is set up similarly to the federal alternative minimum tax -- a company can pay one tax or the other if it is smaller.
Assembly Speaker Richard Perkins, D-Henderson, said Monday that tax discussions are continuing, and that he believed lawmakers were close enough to a consensus on a total budget number to put a total budget and tax plan in place in time to adjourn "two days early."
Gaming lobbyists were less optimistic in the hallways of the Legislative Building on Monday, still suggesting that lobbyists and lawmakers should keep their leases and hotel rooms through June.
Part of gaming's hesitance are the other proposals floating through the building -- proposals that are causing headaches for some of the highest paid suits for the state's leading industry.
Sen. Mike Schneider, D-Las Vegas, unveiled his proposal Monday -- in a 40-page bill without benefit of a single spreadsheet or idea about how much money the taxes could yield.
Schneider looked nervously at Sen. Ann O'Connell, R-Las Vegas, before unveiling his proposal sensing her continued lack of support for major taxes.
"She looks like my mother when I used to come home late," Schneider said. "It doesn't matter what I say, she ain't buying it."
His plan included a 7 percent franchise fee for financial institutions; a tiered form of the gross receipts that would be 2 percent on businesses earning more than $10 million, after an initial $500,000 exemption.
Harvey Whittemore, who represents the Nevada Resort Association, patted his chest and put on his disgust for effect, saying: "Oh, it's going to kill me. It's all us."
The Assembly Taxation Committee plans a work session this afternoon, at which additional details of the UBT might be unveiled.
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