Broader tax base remains a goal

CARSON CITY (AP) " Senate Majority Leader Steven Horsford says broadening Nevada's tourist-dependent tax structure remains a major goal for him, but it's taking a back seat to the immediate need to produce a revenue plan to fund a nearly $7 billion state budget.

"There's the short term obviously, the recognition that we've just got enough to do to be able to come up with a consensus that funds the immediate shortfall," Horsford said after the Senate adjourned late Monday.

"We have not dropped our commitment to address the longer-term issues to broaden our base to get the businesses that can afford to pay to pay, because we have to do that responsibly to fund education in this state," Horsford added.

"So we haven't dropped those (tax structure) components," said Horsford, adding, "I'm hopeful that in the end it will be part of an overall solution, comprehensive plan, both in the short term as well as the long term, of how we move this thing forward."

"There's a mutual recognition that we've got to broaden our tax structure, that relying on two sources, gaming and sales, for 60 percent of our revenue is the reason that we are not able to fund education today."

"And I don't think that any of us want to continue to rely on a tourist funding a teacher in the classroom," Horsford said. "And so we're committed to finding something in the long term that will broaden that base, that's fair, that's equitable and that ultimately makes sure we can fund education respectfully."

Horsford had suggested major changes earlier this session such as a corporate income tax. Now he's working on a plan for a study panel that would review proposals such as the corporate tax and the distribution of property taxes between state and local governments, and report back to the 2011 Legislature.

As the 2009 session draws to a close, lawmakers are trying to plug a $1.1 billion hole in the budget for the next two fiscal years with a tax package that increases business license fees, takes some property taxes from the state's largest counties, Clark and Washoe, increases payroll taxes paid by large businesses and boosts sales taxes and vehicle fees.

The various tax increases have been described by Assembly Taxation Chairwoman Kathy McClain, D-Las Vegas, as "another Band-Aid approach to get us through another crisis."