Legislative panel shies away from raising highway construction revenue

By Cy Ryan

Published Thursday, Aug. 21, 2008 | 6:02 p.m.

Updated Thursday, Aug. 21, 2008 | 6:16 p.m.

CARSON CITY – A legislative committee, trying to find more money to build highways, has nearly struck out.

The committee refused to recommend raising the gasoline tax, increasing the cost of a driver’s license or requiring hotels in Clark and Washoe counties to assess a parking fee on their property.

Sen. Dennis Nolan, R-Las Vegas, the chairman of the committee, said there is a “major funding crisis” and the state may be $5 billion short in building highways to keep up with the growing traffic.

The committee came up “wholly short of the task” of finding more tax revenue to take care that deficit, Nolan said at the conclusion of the meeting.

The committee did approve drafting a bill to impose a $100 additional fine against those persons convicted of reckless driving, drunk driving, driving with a suspended license or being in a traffic accident.

One suggestion called for hotels in Clark and Washoe counties to impose a fee of 50 cents on a person who parks in a hotel garage for five hours or less and a $1 charge for each 24 hours beyond five hours.

Greg Ferraro, a spokesman for the Nevada Resort Association, said it’s a “time honored custom” to provide free parking to customers and residents. He said the casinos are battling for customers with the Indian casinos in California that provide free parking. And he said there would be a cost to collect the fees and police the law if it was passed.

Bob Crowell, representing the Independent Gaming Operators, said this would create a tax where there’s no levy now.

Nolan said the fee is imposed in other states. And he said Las Vegas was very unique that it doesn’t charge for parking in the hotels and casinos.

The committee also didn’t buy a suggestion that the state tax on gasoline that is now 18.4 cents a gallon be raised and tied to the consumer price index. But it could not go up more than three percent a year.

Figures supplied the committee showed the price would increase six tenths of a cent if the proposed tax maximum formula was in effect this year.

Nolan said drivers, with the price of gasoline rising, are driving less and that means there is less money for the state to maintain highways. “We’re losing ground with the gas tax,” he said. The state’s share of the tax has not been raised since 1992.

Recommendations by a task force created by former Gov. Kenny Guinn to raise revenue were also rejected. One called for boosting the cost of a driver’s license by $20. One suggestion would be to freeze for one year the depreciation rate on the governmental service tax imposed annually. Each year the value of a vehicle, for tax purposes, decreases so the tax is less.

The committee deadlocked 3-3 on a suggestion to impose fines for those people who move to Nevada but continue to use their old license plates. It was estimated that the higher fines and the increased revenue from people registering their vehicles sooner in Nevada would bring in an estimated $5 million a year.

Assemblyman Pete Goicoechea, R-Eureka, said he gets burned up when he sees the owner of a $200,000 motor home come to Nevada and live here without getting Nevada plates.

But Senate Minority Leader Dina Titus, D-Las Vegas said it seems it would create “more red tape and bureaucracy.” She questioned whether the committee should consider adding more state workers for this program when there are more critical needs such as in the schools and at parole and probation.

The committee also did not endorse a proposal for a public-private partnership on construction of highways. Lawmakers said that plan will be introduced at the 2009 Legislature whether the study committee recommended it or not.

A recommendation from motorcycle riders to change the helmet law died in the committee. The recommendation, proposed by Mike Davis, president of the Southern Nevada American Bikers, called for repeal of the helmet law requirement for drivers who are over 21 years old and licensed to drive a cycle.

It also said a passenger 21-years old would not be required to use a helmet.

The proposal died without a vote.

And a recommendation from motorcycle riders to change the helmet law died in the committee. The recommendation, proposed by Mike Davis, president of the Southern Nevada American Bikers, called for repeal of the helmet law requirement for drivers who are over 21 years old and licensed to drive a cycle.

It also said a passenger 21-years old would not be required to use a helmet.

There were a number of people attending the meeting that supported the plan. But it died without a vote.