Nevada gov looks at changes in tax laws
November 23, 2004
CARSON CITY, Nev. (AP) – Gov. Kenny Guinn wants the 2005 Legislature to take a look at changing part of Nevada’s record $833 million tax increase that hit some small banks, other financial businesses and restaurants.
The Republican governor, who sought higher taxes during the 2003 session, said lawmakers now need to “clarify” the new tax laws that didn’t have much open discussion in the closing days of last year’s special session.
Among other things, the Legislature imposed a 2 percent tax on gross payroll on financial institutions, and banks now must pay $7,000 a year for each branch bank.
“They should look at the 2 percent because a lot of other people got caught up in the 2 percent,” Guinn said. “The people said they are not bankers. They (the Legislature) will have to restructure that or at least look at it.”
The 2 percent tax, Guinn said, ended up affecting such businesses as check-cashing services or mortgage companies that hold fees. “They (the Legislature) may not change it (the law) but maybe they need to clarify it,” he said.
“A lot of things were placed on that bill at the very end without a lot of open discussion,” he said. “It’s important when you make that much of a change that you have time to go back and pay attention to it by getting input from the various people.
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There also should be some adjustment on the 10 percent entertainment tax that hits restaurants where there’s piano player, he said. The tax is charged on food and drinks. The governor said he isn’t talking about changing the 10 percent entertainment tax on casinos but on other businesses that were included in the bill.
“These are the changes they (the Legislature) will be looking at and I will help them get some of those changes,” said Guinn.
But the governor repeated he won’t sign any bill for new taxes. He also said he hasn’t had many complaints on last year’s increases in liquor, cigarette and real property transfer taxes.
There are more than 20 bill requests for the 2005 Legislature so far to change the taxes imposed in 2003.