Panel delays cops sales tax increase, saying state’s needs are bigger

CARSON CITY — Clark County residents could start paying higher sales taxes in July 2011 to hire more police officers under a bill approved today by a key Senate panel.

But Taxation Chairman Bob Coffin said the state’s needs are bigger than the county’s and that the sales tax needs to be increased statewide by a full percentage point and enacted much sooner to bail out a state government that has been hit hard by the recession.

The bill was modified to delay possible implementation of the cop sales tax increase two years. The authorization for the cops tax increase had been designed to go into effect later this year.

Taxation members voted 6-1 to authorize the County Commission to approve a one-eighth of a percentage point tax increase in 2011 and another one-eighth of a percentage point increase in July 2013.

With the increases allowed in Senate Bill 202, the county’s sales tax rate in 2013 would be 8 percent.

“We need to defer it so we can clear the decks for the state,” said Coffin, D-Las Vegas, adding that the bill would allow the More Cops sales tax increase when economic times are better.

Coffin and panel members offered no more details about a statewide sales tax increase. Democratic leaders in the Senate and Assembly have refused to state what tax increases they plan to pursue until the Economic Forum on May 1 projects how much tax revenue the state will have to spend over the next two years.

The bill now heads to the Senate floor, and then, if approved, to the Assembly.

Clark County Sheriff Doug Gillespie today agreed to the cops sales tax increase delay, but added that having a set time in which sales taxes will be raised would help police departments recruit officers.

Clark County voters narrowly approved the More Cops advisory question in 2004. The measure called for two quarter-cent sales tax increases to pay for an estimated 1,700 new officers among the five police departments in the county.

State lawmakers approved the measure in 2005, but required local officials to return to Carson City this year to justify the second phase of the increase, which would add $2.50 to the price of a $1,000 big-screen television and $50 to a $20,000 car.

During today’s hearing, Coffin and other Democratic legislators criticized North Las Vegas Mayor Michael Montandon who announced last week that he is circulating a petition to stop the Legislature from imposing a sales tax on services.

Coffin called Montandon, a Republican candidate for governor, a “yahoo.”

He noted North Las Vegas Police Chief Chief Joseph Forti testified last week for the cop tax bill and pointed out how the crime rate in his city has dropped because of a half-cent sales tax increase to hire police that was approved in 2005.

Forti also said his city cannot hire 19 police officers to fill vacancies because of a shortfall in anticipated sales tax revenues. He estimated that shortfall would be $3.3 million by 2011.

In jest, Sen. Terry Care, D-Las Vegas, questioned whether there was a way to carve North Las Vegas out of receiving the sales tax revenue. But Coffin said they should not punish North Las Vegas residents for their mayor.

Sen. Mike Schneider, D-Las Vegas, called Montandon “irresponsible,” adding the cities need more police.

Montandon did not immediately return a call for comment.

All three Republicans on the committee — Mike McGinness of Fallon, Randolph Townsend of Reno and Maurice Washington of Sparks — backed the police tax increase.

The only no vote was cast by Sen. Maggie Carlton, D-Las Vegas, who was upset the sales taxes also could not be used to hire more Nevada Highway Patrol officers.

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