Mining lobbyists avoid provoking hostile lawmakers in tax debate

By Anjeanette Damon

Tuesday, April 5, 2011 | 4:12 p.m.

The mining industry struck a conciliatory tone today during an initial hearing on a measure that seeks to repeal the net proceeds on minerals tax from the state constitution.

Mining lobbyists quickly changed tactics earlier this session after their aggressive opposition to an earlier measure to revoke the mining industry’s eminent domain rights met hostility from both Democratic and Republican lawmakers.

So today when Senate Joint Resolution 15 came before the Revenue Committee, industry lobbyists adopted a neutral position, saying they were attending the hearing simply to learn more about the intent behind the measure. The measure would start the constitutional amendment process, which requires the Legislature to pass it twice before it goes to voters for a final ratification.

Repealing the constitutional protection of the net proceeds tax would allow lawmakers to adjust the rate, change the way the proceeds are shared with counties or impose a different type of tax.

The lobbyists’ presence at the hearing, however, gave Senate Majority Leader Steven Horsford, D-North Las Vegas, another opportunity to grill industry lobbyists about its tax obligation at a time when the industry is enjoying record profits from soaring gold prices.

“So it’s either lift this constitutional restriction, which takes six years, or find a broad-based solution that treats the mining industry along with the banks, the big box retailers and every other large company in a way that allows you to contribute,” Horsford asked. “Is that how the process would have to work?”

Tim Crowley, president of the Nevada Mining Association, said the industry would be willing to support a broad-based tax increase if “the governor and the Legislature come to agreement."

Gov. Brian Sandoval has repeatedly vowed to veto any tax increase.

Horsford said he has difficulty explaining to his constituents that lawmakers can’t tinker with the mining tax to help the state with its $2.5 billion shortfall because of the constitutional protections.

Lobbyists with the Progressive Leadership Association of Nevada and the Nevada State Education Association testified in favor of the measure.

Only state Sen. Elizabeth Halseth, R-Las Vegas, expressed concerns about the measure.

“I want to support Northern Nevada,” she said. “I think all Nevadans do and I believe mining is their bread and butter. That is how they are able to stay afloat. If we encourage business in Northern Nevada to be here, then Northern Nevada would no longer have to rely on Clark County.”