Senate Majority Leader Steven Horsford, said Tuesday too many Nevadans don't understand the state is constitutionally unable to do very much about the amount of taxes miners pay in Nevada.
He said that's the reason the Senate Revenue Committee is proposing Senate Joint Resolution 15, which would amend the state constitution to remove the special language protecting the mining industry.
Horsford, D-Las Vegas, was joined by committee chairwoman Sheila Leslie, D-Reno, who said her constituents question why Nevada can't share in the wealth gold miners are reaping from Nevada's mines. Gold is now going for more than $1,400 an ounce.
Horsford said the constitutional restriction "binds the hands of the Legislature to adjust."
Retired UNR History Professor James Hulse told the committee the amendment is "an excellent and long overdue proposal."
"It would close tax loopholes the mining companies have enjoyed since the founding of the state," he said.
But Tim Crowley of the Nevada Mining Association said the state is benefiting from the high price of gold. He said net proceeds of mines tax isn't the only levy mines pay in Nevada. He said in addition to the roughly $100 million from net proceeds, "we pay roughly $100 million conventional business taxes."
He said that includes property taxes, the modified business tax, sales taxes among others.
Horsford and Leslie both pointed out that the proposed amendment doesn't change the tax miners pay at all this legislative session or in the 2013 session. They said the resolution must be passed by two consecutive legislatures before going to a vote of the people and, even if approved then, doesn't actually change the tax rates. She said it's not specifically about raising mining taxes.
"This is about giving the Legislature flexibility over time," she said.
The committee took no action on the proposed amendment.
