Governor says he will veto tax measures

CARSON CITY — Nevada Gov. Jim Gibbons says that on Thursday he will veto a $781 million tax increase plan sent to him last week by state lawmakers.

When the expected override of the veto comes, taxes, including higher room taxes already approved, will increase by $1 billion in the next biennium.

The plan increases sales taxes, business levies and license fees and vehicle registration fees.

A "sunset" clause would allow most of the increased taxes to be erased in 2011.

Under SB429, the state's 6.5 percent sales tax would increase by 0.35 percent.

Payroll taxes, now at 0.63 percent, would increase to 1.17 percent for firms with payroll of more than $250,000 a year. The rate drops to 0.5 percent for companies with payrolls under $250,000.

The measure also increases the state's business license tax from $100 to $200.

A similar provision in AB146 also was sent to the governor.

A vehicle fee increase is included both in SB429 and AB146.