Gibbons vetoes tax and budget bills, 'insult to families'

Saying "liberal leadership in the legislature took the easy way out," Gov. Jim Gibbons Thursday vetoed not only the bill raising taxes but the major bills that implement the budget.

"In the end, I find this a job killing, economy crushing insult to the hard working families of Nevada," he told reporters and a small group of anti-tax activists who gathered on the steps of the Capitol.

He credited a small group of Republican lawmakers, most of them standing behind him, with trying to control what he termed out-of-control spending and crushing tax hikes. Those on the steps were Assembly members Ty Cobb of Reno, Don Gustavson of Sparks, and John Hambrick and Richard McArthur of Las Vegas.

"Raising taxes during an economic crisis is foolish and short-sighted," Gibbons said. "The Legislature has chosen to waste their time and your money creating a budget that is filled with $1 billion in new taxes that will hurt every single person in this state."

Gibbons vetoed not only SB429, which contains the business, sales and other tax increases, but the Appropriations Act, Authorizations Act, Education funding bill, public employee pay bill, the legislation taking property tax revenue from Washoe and Clark counties, the bill increasing what the state charges local governments for collecting sales taxes and the bill funding public employee retirement contributions for the coming two years.

In addition, earlier in the day he vetoed the business portal legislation designed to create a one-stop-shop for businesses coming to Nevada. That measure contained a business license fee for businesses that don't have a physical location in Nevada, and doubled the current fee from $100 to $200 a year.

He called it a historic day and called on lawmakers who supported the tax plan and the budget to rethink that position and vote to sustain his vetoes.

Chief of Staff Josh Hicks said the vetoed bills and the governor's veto messages would be returned to the legislature as soon as the paperwork was completed.

Under the Nevada Constitution, two-thirds of each legislative house

must agree in order to override a gubernatorial veto. In the Assembly, Democrats, who have stood together on the issue, hold a two-thirds majority.

In the Senate, Democrats are two votes short " 12 of 21 senators. But

five Republican senators voted with the majority to pas the tax

increase legislation and have agreed to support an override.

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