Minority Leader Dina Titus' attempt to freeze property taxes on homes for a year failed on a 10-11 vote in the Nevada Senate Thursday.
Titus said her bill wouldn't change the plan set out in AB489 - which caps annual increases for homeowners at 3 percent and all other properties including businesses at 8 percent. She said it just delays the plan for one year, freezing home taxes at current levels this coming year.
She said schools and local governments would still get all the new money from new construction and improvements to property. But she said the tax plan would give a much bigger break to big businesses and millionaire homes than small property owners who would still have to pay 3 percent more even though their salaries probably didn't rise that much this year.
"The more your property has gone up in value, the more you get but at least under the freeze, everybody gets something and that seems to me to be more fair," she said. "More people will benefit."
She said any losses to local governments should be more than made up by sales taxes, real estate transfer taxes and other levies "which are all coming in at record levels."
Titus was joined in her call for a freeze by fellow Democrats Bob Coffin, John Lee, Steve Horsford, Bernice Mathews and Valerie Wiener as well as Republicans Bob Beers, Barbara Cegavske, Sandra Tiffany and Dennis Nolan.
Senate Majority Leader Bill Raggio, R-Reno, said the Senate would take up the bill itself later this afternoon.
But first an amendment correcting the 8 percent cap portion of the bill must be approved. The way AB489 is currently drafted, counties where assessed values increased less than 8 percent could raise business tax levels the full 8 percent - which is more than they would have been allowed under the original Assembly version.
After Senate action, the bill must go back to the Assembly to see whether they will agree to the 8 percent cap instead of the 10 year rolling average originally in the bill. Only two counties - Clark and Storey - are over 8 percent.
Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.
