Bills to repeal mining tax cap stays alive


Share this: Email | Facebook | X

A Nevada Senate committee is keeping alive some of the session's most contentious bills that aim to raise tax dollars for the state.

The Senate Revenue Committee on Thursday decided to exempt several measures from a Friday vote-or-die deadline. The proposals due for extended consideration include a resolution to take a cap on mining taxes out of a constitutional safe zone and a bill that would continue sending a portion of tax revenues from Clark and Washoe counties to state coffers.

Legislators said they needed more time to consider the measures, which involve hundreds of millions of dollars and could prompt further waves of layoffs in county governments that say they're already operating with skeleton crews.

"We recognize you're in a very difficult position," Clark County Commissioner Susan Brager told lawmakers. "We ask you to recognize that we're in a very difficult position."

The proposal affecting Clark and Washoe counties would bring the state about $644 million for the upcoming biennium by extending several provisions scheduled to sunset. Those include transfers from a medical fund for indigent people, a fee increase for business licenses, an increased sales tax to benefit schools and transfers from county property tax.

County representatives say they counted on the sunsets in their upcoming budget plans. City and county employees are already taking pay cuts, and basic services could become even more understaffed, they say.

Lawmakers are also continuing conversations on raising taxes in the booming mining industry. Since Nevada gained statehood in 1864, mining taxes have been capped at 5 percent of the net proceeds. The structure was meant to accommodate mining companies that dominated the young state's economy, but many say the cap has outlived its usefulness and want the struggling state to cash in on record gold prices.

Changing the constitution would require legislators to approve the measure in two consecutive sessions. The measure would then go to the ballot, and if it passed, lawmakers could adjust the tax rates.

The process of lifting the cap and raising taxes on mining would take at least five years.

While the taxing issue is still open, Senators voted to move forward with a plan to create a Mining Oversight and Accountability Commission. The commission would supervise the taxation, operation, safety and environmental regulation of mines, and would comprise members appointed by the governor and legislative leaders.

Sen. Mike McGinness, R-Fallon, and Sen. Elizabeth Halseth, R-Las Vegas, voted against the measure because it gives too much power to one group.

"The oversight committee has too much oversight," McGinness said.

Sen. Steven Horsford, D-Las Vegas, said the commission was intentionally broad so members of the public could bring their mining concerns to one place rather than separate agencies.

The bill will go to the Senate floor, where it will likely be referred to the Senate Finance Committee.