Wednesday, July 14, 2004
Copyright © Las Vegas Review-Journal

Property taxes worry voters

Candidates say rise in assessed values big concern

After 2003's year of the taxes, this election year is shaping up to be the year of the tax caps.

Just two months ago, it appeared as though gas prices could spark serious election year discussion, but with prices at the pump tapering and assessed property values skyrocketing, the issue has shifted.

As homeowners receive their property tax bills in the mail, politicians from both parties are requesting bills that would cap annual property tax increases at 6 percent.

Sen. Ann O'Connell, R-Las Vegas, requested a bill draft June 10 to cap property tax bills, and the Legislature's Democratic leaders, Assembly Speaker Richard Perkins and Senate Minority Leader Dina Titus, requested a similar bill Friday.

Candidates campaigning door-to-door say they're being deluged with concerns about property taxes. They're being asked where they stand on Clark County Assessor Mark Schofield's plan to cap annual tax increases at 6 percent.

"I want them to take credit for it," Schofield said. "I want it to happen."

With property values exploding, mostly in Clark County, tax bills are going to go up substantially. Schofield warns that next July's property tax bills could contain double-digit percentage increases for most homeowners.

"We've got to protect homeowners," Perkins, D-Henderson, said. "If it's a good idea, it's a good idea."

Earlier this year, Assemblywoman Sharron Angle, R-Reno, proposed an initiative petition to amend the state constitution and cap increases at 2 percent. Angle represents wealthy homeowners in Incline Village who have seen substantial increases in the value of their homes.

In addition to Clark and Washoe counties, assessed property values are rising in Douglas and Lyon counties.

But Angle's initiative petition, which mirrored California's Proposition 13, failed to qualify for the ballot. The assemblywoman is now proposing a similar measure in bill form.

Sen. Ray Rawson who is engaged in a tough Republican primary election battle with Assemblyman Bob Beers, recently sent a mailer focusing on the issue.

"In just a few short weeks homeowners are going to get a shocking property tax bill and Ray Rawson is already fighting hard to roll it back," states the mailer, which began arriving Monday. The piece discusses Rawson's proposal to tie property tax increases to the rate of inflation. It also mentions a bill Rawson sponsored in 1997 that permitted more seniors to qualify for a property tax refund.

"I think those of us who have been championing (Angle's) initiative petition welcome them (cap supporters) on board," said Beers, R-Las Vegas, who voted against the Legislature's record tax hike in 2003 and against a separate capital improvement bill that increased the portion of property taxes the state receives.

Beers called Rawson's proposal ironic given Rawson supported last year's tax increase that totals $833 million over two years.

With property taxes coalescing as a political issue, the debate will likely center on at what level the increases should be capped.

Proponents of the Angle initiative support a lower cap while the assessor, O'Connell and Democrats support the 6 percent cap.

"This will have zero effect on school finance," Perkins said. "The potential is 6 percent growth per year. That's plenty healthy for government."

Under the 6 percent cap, if property value rises only 2 percent, the bill would go up 2 percent. If the value rose 200 percent, the bill would go up 6 percent.

Justin Doucette, a Republican running in the open Assembly District 4 race, also sent a mailer supporting a cap on property taxes. He said he's heard from some residents who don't want to see any increase.

"I think zero's an extreme," Doucette said. "There's going to be a lot of money on the table when those bills come in. It's a windfall for local governments and if you cap it at 6 percent, you're guaranteeing money for schools and other needs."

Doucette is in a race with two other Republicans, Francis Allen and Richard McArthur, in the district that includes Sun City Summerlin.

Titus, who kicked off her re-election campaign Saturday with a walk in her eastern Las Vegas district, said she constantly heard from voters concerned about rising property tax rates.

"They get confused and think it's the fault of the Legislature," Titus said.

The $833 million increase didn't affect property taxes. "This cap idea is going to require legislation and at a certain point it's going to require some action," Titus said.

Titus said one legislative possibility is for levying different rates on different types of property.

"It could be good for the little guy, the big guy, the businesses and residential," she said.

Schofield continues to brief legislative candidates who phone him for information and said he believes the discussion should be aired as soon as possible to provide relief before next July's tax bills go out.

A cap would require huge programming changes that might be difficult for rural counties to implement in quick fashion. And although he welcomes lawmakers who advance his idea, Schofield warned: "I'm telling people that anyone that tries to capitalize or politicize this or exploit it will get no support from me. This has got to be a bipartisan, dual house effort."