State tax commission OKs Lyon construction tax

A residential construction tax rejected by the Nevada Commission on Taxation in May, finally won that body's approval.

The commission OK'd the $1,600 tax on new single-family homes, apartment units or mobile home lots at a hearing Friday.

The tax will take effect Jan. 1.

Lyon County School Superintendent Nat Lommori said the approval was welcome news to the district, since the funds from the tax will go to capital improvements for the schools. Lommori has estimated that if 2,000 building permits are issued then $30 million would be raised for the schools.

"Now we'll try to reinstate some budgets," he said.

In May, the commissioners approved a similar tax, but it was rejected by the tax commission because a business-impact study had not been done.

In September, a study provided by the school district found a new tax would pose no significant negative impact to business.

At the time, the school district sent more than 900 letters to area builders and developers, receiving only five responses from builders. Three of those responses opposed the tax and two supported it.

The Lyon County Board of Commissioners approved the study and the issue went back before the tax commission.

Rick DeMar, of the Builder's Association of Western Nevada, who previously had opposed a residential construction tax, attended the hearing, but did not address the commission.

"The growth in Lyon County is just overwhelming," said Bob Milz, chairman of the Lyon County Board of Commissioners. "The school district really needed this."

• Contact reporter Karen Woodmansee at kwoodmansee@ nevadaappeal.com or 882-2111 ext. 351.