State lawmaker proposes tax review instead of rebates

State Sen. Warren Hardy says that instead of giving $300 million of Nevada's budget surplus to vehicle owners, the 2005 Legislature should review taxes passed in 2003 and scale back some of them to prevent future surplus accumulations.

The 2003 Legislature approved $833 million in taxes over two years to offset a shortfall in state revenue. Hardy joined a number of Senate Republicans in approving the new taxes on business payroll, banks and live entertainment, and increased levies on gambling, real property transfer, cigarettes and liquor taxes.

Gov. Kenny Guinn has said the state now has a $310 million surplus, fueled by double-digit increases in sales and gambling tax revenues. He wants to give $300 million back through the Department of Motor Vehicles to those who registered vehicles last year in the state.

Hardy, R-Henderson, said Thursday he'd stand to receive $900 under the governor's proposal, but that he would prefer refunding the tax money to businesses.

"The governor's rebate plan really is a distribution of wealth," he said. "It's taking money from the pockets of small businesses and giving it to residents who didn't pay the tax. We need to put it back in the pocket of those we took it from and make sure we don't take it again."

Hardy said he doesn't support an outright repeal of the taxes, which is a proposal Sen. Bob Beers, R-Las Vegas, has submitted.

Hardy said he will submit a bill draft request seeking a review all of those taxes, with an eye toward scaling back the payroll tax, business registration fee and the bank taxes in particular.

He doesn't believe the taxes on gambling should necessarily be reduced, even though gambling-related revenue increases are fueling the surplus.

Hardy also said he expects the actual surplus to be in the range of $700 million.

Greg Bortolin, Guinn's spokesman, said he believes Hardy's plan to re-examine the 2003 tax package is "like turning the clock back."

Carole Vilardo of the Nevada Taxpayers Association said Hardy's proposal is admirable, but the plan might be hard to sell in a session dominated by talk of how to rein in property taxes.