Tentative deal on taxes announced

CARSON CITY — Legislative leaders emerging from a closed-door meeting said they plan to introduce a bill tonight that increases sales taxes by 0.35 percent, ups the top payroll tax rate to 1.17 percent and raises motor vehicle registration fees.

The plan is about to be introduced and discussed in a committee of the state Senate, but no vote will be taken tonight, lawmakers said.

Senate Minority Leader Bill Raggio, R-Reno, emphasized that Republicans still want the sales and payroll tax hikes to expire after two years, and said their votes are conditional on further Democratic concessions on public employee benefit reforms.

Assembly Speaker Barbara Buckley, D-Las Vegas, said the idea is to get the ball rolling as legislators continue to negotiate.

"There will be changes," she said, "but we wanted to get a bill out tonight so it can be examined."

The tax hikes amount to about $780 million in state revenue over the next two years.