Nevada’s tax policy in need of modernizing

Sam King, Las Vegas

Sunday, Sept. 7, 2008 | 2:07 a.m.

Last Sunday’s guest Where I Stand column by Terry Lanni, headlined “Large businesses should provide for fair share of state’s needs,” gave an intelligent and fair solution to Nevada’s budget dilemma. The League of Women Voters of Nevada, in a 2003 study, came up with the same perspective — the present tax structure is insufficient.

Mr. Lanni said that over the next few months he would be working with like-minded colleagues to change Nevada from a state where economic and social planning has fallen short to a state that meets its obligations. He plans to work with gaming and nongaming business entities to refine the present Nevada tax structure to raise revenues to an acceptable level to sustain an appropriate quality of life for present and future Nevadans.

Mr. Lanni acknowledges that the gaming industry will continue to pay the largest share of taxes. This is not to imply that gaming should be expected to shoulder the responsibility alone. While businesses large and small have profited from Nevada’s tax-friendly climate, not all have reciprocated by stepping up and sharing responsibility for educating Nevada’s children and financing state needs.

He suggests that by modifying the business tax and spreading tax liability, Nevada can operate more effectively. It is a losing proposition to continue with our present system, which exports tax liability to tourists and bets on gaming taxes alone to balance the budget. In plain language, Mr. Lanni has made the case that a no-tax business environment is a relic of a bygone era.

Nevada has come of age and needs a tax structure that is fair, efficient, stable and capable of supporting and sustaining Nevada during good times and economic downturns. With consensus from stakeholders, elected officials will have a blueprint to follow come 2009 to revise the tax system. I applaud Mr. Lanni and offer that the Nevada League of Women Voters would like to sign on as an organization of like-minded colleagues.

The writer is president of the League of Women Voters of Nevada.