CARSON CITY -- A bill introduced by state Sen. Bob Beers on Thursday would cut in half the taxes people pay when they register their motor vehicles every year.
Senate Bill 93 would eliminate the revenues from what is called the Basic Governmental Services Tax that now go to counties, cities and other local government agencies across the state. The equal share that goes to local school districts would remain.
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Losing the revenue would be a big hit on local governments. The tax generated $270.7 million in taxes in fiscal year 2005-06. It is projected to bring in $281.4 million this year.
Beers' proposal would cut the tax, which is now set at a rate of 4 cents on each $1 of valuation of a vehicle, to 2 cents per $1 of value. The valuation of each vehicle depreciates over several years, reducing the amount paid each year by the motorist.
Beers, R-Las Vegas, said the tax rollback was part of his campaign for governor.
"I want to cut the car tax in half," he said.
Beers said local government tax revenues in Clark County still would grow overall even if their shares of the tax was eliminated.
The bill could be heard as early as Thursday in the Senate Taxation Committee.
Kimberly McDonald, a lobbyist representing North Las Vegas, said city officials would be concerned about the loss of the tax revenue. The city would lose an estimated $4 million in revenue if the tax cut is approved, she said.
"We're the second fastest growing city in the nation," McDonald said. "This would have a tremendous impact on local government."
Local governments are providing services to the same growing population that the state serves, McDonald said.
Beers was behind a plan to rein in local and state government spending through a constitutional amendment that was tossed off the ballot by the Nevada Supreme Court last year.
Beers announced his proposal to cut the Governmental Services Tax in half while running for governor in late 2005. He estimated at that time the cost to Clark County would be $29 million and Washoe County $10 million, although those numbers are now likely higher.
Marvin Leavitt, a lobbyist for the Urban Consortium, which is comprised of Nevada's five largest cities, said the loss to Henderson would be $9 million, while Las Vegas would lose $27 million.
In all, $101.4 million of the Governmental Services Tax flowed to all local governments in Clark County in the last fiscal year, he said.