Nevada Legislature passes tax plan under the wire

The tax package came within a hair of failing in the Senate Friday when Republicans refused to support it without a two-year sunset clause on the major tax increases in the bill.

The proposed amendment requiring the taxes to cease in 2011 originally failed on a 12-9 party line vote. Minority Leader Bill Raggio, R-Reno, who has been relentlessly talking about sunsets to any tax hikes since last fall, stood his ground, threatening to kill the tax package without a sunset on the sales and business taxes.

The process ground to a halt while the clock edged steadily toward 5 p.m.

By the time Majority Leader Steven Horsford, D-Las Vegas, blinked and offered up an amendment imposing the sunset, there was only an hour left for the Assembly to receive, hear and pass the measure.

Their problem: If the bill didn't reach Gov. Jim Gibbons' office before 5 p.m., the governor could have delayed a veto until after adjournment of the Legislature " which would have enabled him to send them into special session to finish the budget, but without a tax option.

With the sunset on the business taxes and the sales tax " which made up the majority of the $780 million in revenue the plan is expected to bring " Raggio delivered his end of the deal, bringing not only his but the votes of the majority of the Republican caucus, making the tax increase a bipartisan decision of the Senate. The vote was 17-4 with Senators Mark Amodei of Carson City, Mike McGinness of Fallon, Maurice Washington of Sparks and Barbara Cegavske of Las Vegas voting no.

With less than an hour left, Assembly Speaker Barbara Buckley, D-Las Vegas, moved aggressively to prevent any delay that could make them miss the deadline. While the Senate dragged through the last-minute political maneuvering, she had staff explain the contents of SB429 to the membership, then held the floor debate on the measure " all before the Senate voted to send the measure to the Assembly.

When SB429 arrived, she declared it an emergency measure, used the Speaker's prerogative to delay further debate until after the vote and, in less than five minutes, had the two-thirds majority " 29-13 " to pass it.

At 4:25, Lauren Soper of the Legislative Counsel Bureau arrived at the governor's office to present the tax plan and one other bill in the package of nearly a dozen that make up the state's total spending plan for the coming two years. At least 10 others had already been delivered as they were passed during the day.

Their delivery starts the five day clock. Gibbons must sign or veto bills within five days or they become law without his name. If the Legislature adjourns, they don't get to deal with the veto until the start of the next Legislature in 18 months.

The brinksmanship as the deadline approached was vintage Raggio and what several observers described as a lesson in political hardball for Horsford, who is in his first tour as majority leader and a member of leadership.

In the end, veteran legislators Buckley, Ways and Means Chairman Morse Arberry of Las Vegas and Assembly Majority Leader John Oceguera of Las Vegas all advised Raggio to give on the sunset issue. As one put it, they can always impose the same taxes in two years if the economy isn't strong enough to live without them.

Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.