Chamber members oppose proposed tax

The Carson City Area Chamber of Commerce overwhelmingly opposes the gross-receipts tax proposed by the governor, according to a survey released this week.

About 80 percent of the chamber members who responded said they agree with the opposition to the tax proposal. Out of about 1,000 chamber members, the survey was distributed to the 480 on an e-mail list. About 24 percent -- 116 members --of those responded.

"The board of the chamber has indicated there's just no way we can support (the gross-receipts tax)," said Larry Osborne, chamber chief executive officer.

He said such a tax would be "unfair and inequitable" because businesses would be taxed on receipts, rather than profits. Business such as grocery stores and car dealerships have large receipts, but a small profit margin.

"Businesses that are losing money or in the red would still be taxed on receipts," said Osborne.

While the chamber calls the proposed tax unfair, Greg Bortolin, Gov. Kenny Guinn's director of communications, said a task force settled on the tax as "the most fair" after a one-year study.

"They felt this was the fairest across-the-board tax you could create," he said.

He said two recent media polls returned favorable results on the question of the gross-receipts tax.

"Of course, those were general audience polls while (the chamber poll) is specific to the business community."

He said the way the question is phrased, and who is asked, will affect responses.

"If you ask most people if they favor taxes, most of them will say 'no,'" he said. "But if you ask them, 'Are you in favor of funding more teachers to educate your children?' I think you'll get a markedly different response."

Bortolin said whether or not someone supports taxes is actually a side issue.

"The real issue is, we are facing a projected $704 million revenue shortfall over the next biennium," he said.

It will cost the state $450 million just to maintain current services for children in kindergarten through 12th grade because Nevada expects 27,000 new students over the next two years, Bortolin said.

"When voters in Clark County, Washoe County and Carson City vote to approve school bonds, the message they're sending directly to the state is they expect the state to hire the 1,200 to 1,500 new teachers required to fill those classrooms," Bortolin said.

The chamber reported that responses to its survey represented a cross section of chamber membership, including government and nonprofit groups and businesses varying in size from sole proprietors to firms with more than 200 employees.

The survey was conducted from Saturday through Wednesday.

INFORMATION

On the Net: Carson City Chamber of Commerce: www.carsoncitychamber.com

Call: 882-1565