Ex-official: Gibbons didn’t apply pressure for tax break

CARSON CITY -- A former Elko County assessor did not feel pressured by Gov. Jim Gibbons to give the governor a tax break on ranchland he bought near Lamoille, according to Nevada Ethics Commission transcripts released Friday.

Joe Aguirre told an Ethics Commission investigator that he had a "very cordial conversation" with Gibbons when the governor showed up in his office on Sept. 1 to inquire about obtaining an agricultural classification on 45 acres of ranchland.

"There was no pressure," Aguirre said. "I mean I have respect for the man ... He didn't do anything that would (have) put pressure on me."

But Aguirre said he later felt "uncomfortable" when Gibbons hired Elko County lawyer John E. Marvel to handle the tax matter.

Marvel also serves on the state Tax Commission, and Aguirre said the county lost a $65,000 case before the commission, which handles appeals of county assessor tax decisions throughout the state.

Aguirre said he always has had trouble getting Marvel to produce records he needs to determine whether people qualify for the agriculture classification, and Marvel still has not produced land lease records in Gibbons' case.

Gibbons, however, told the investigator he did not know Marvel served on the tax panel when he hired him.

Earlier this year, Gibbons received an agricultural land assessment that reduced his property taxes on the ranchland from potentially $5,000 a year to less than $40.

Land for agriculture use is taxed at a reduced rate if the owner can show he earned at least $5,000 a year from agriculture use of the property.

The ethics panel on Friday released transcripts of interviews its investigator had last week with Gibbons, Aguirre, former District Judge Jerry Carr Whitehead and earlier with state Democratic Party Executive Director Travis Brock.

Commissioners Tim Cashman and Erik Beyer are scheduled to conduct a Sept. 11 preliminary hearing to determine whether there is ample evidence that Gibbons pressured Aguirre to give him the agricultural assessment on his Lamoille land. If so, the case will go before the full commission, where Gibbons could be charged with breaking state ethics laws.

Normally commission preliminary hearings are private, but Gibbons asked that the hearing and all materials in the case be made public.

Gibbons aide Ben Kieckhefer said the transcripts prove what the governor has been saying all along: that he sought no special privileges and did not pressure the assessor into giving him a tax break.

"It just shows the Democratic Party is out to get him," Kieckhefer said.

Neither Marvel nor Brock could not be reached for comment Friday evening.

Aguirre said in his Aug. 21 interview with the investigator that he still doubts the governor qualifies for the lower tax rate. He said he received two "uncanceled" checks totaling $5,700 that Whitehead purportedly paid to graze his cattle on Gibbons' land.

He said he still has not received a copy of the land lease agreement between Whitehead and Gibbons.

The state Democratic Party filed a complaint against Gibbons with the Ethics Commission after news reports quoted Aguirre saying Gibbons pressured him into an unwarranted tax break. A second complaint was filed against Marvel.

In his Aug. 21 interview with the investigator, Aguirre said he told Gibbons during their brief meeting last year that he doubted his 45 acres of grazing land qualified for the lower tax.

"The integrity of the program means a lot to me," Aguirre said. "I mean we're here to protect the taxpayer, the mom-and-pop operations."

He said he feels rich newcomers, including Gibbons, are taking advantage of a statute designed to keep agricultural land green.

Aguirre said he does not feel it is fair for rich people to secure tax breaks, while he has to evict families if they cannot pay a $100 tax bill.

Gibbons brought the land in August 2007 from Whitehead.

Whitehead told the investigator he has 500 cows and calves and 30 bulls on his ranch. The animals are free to roam on the unfenced section purchased by Gibbons.

He said he offered to lease the land from the governor and quoted the fee he would pay and it was accepted.

The investigator, however, never asked him what the lease payments would be.

In his interview, Gibbons said he bought the land because that was where he wanted to retire.

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.