Demo tax plan would replace Nevada’s modified business tax

CARSON CITY — Democrats hinted late Thursday that their alternative tax plan would eliminate Nevada’s modified business tax and could resurrect failed measures such as a corporate tax.

Sen. Pat Spearman, D-North Las Vegas, told members of the Senate Revenue Committee she was “close” to finishing a tax plan to be considered as an alternative to Gov. Brian Sandoval’s business license fee proposal.

Spearman said the Democratic plan would eliminate Nevada’s modified business tax, which brings in about $400 million annually, but provided few other details.

“What are you looking at?” Sen. Michael Roberson, a Henderson Republican who chairs the panel, asked after Spearman gave a presentation about the need for broad-based, sustainable tax reform.

Roberson asked if the Democratic plan will include corporate or gross business tax proposals.

“I am considering all of those,” Spearman said, “but my priority is to eliminate the MBT.”

She added, “I have no illusion that the plan I come up with will be met with dancing in the streets.”

Nevada voters in November rejected a business margins tax backed by the teachers union, and a failed gross receipts tax proposed in 2003 led to a nasty tax battle.

Sandoval has proposed a $7.3 billion general fund budget and a tax package that includes $1.1 billion in new and extended taxes.

Spearman said her plan will “cover the governor’s recommendations” as well as other needs raised during the first month of the legislative session such as road and infrastructure improvements.

She also urged the committee not to rush on a tax package, saying whatever lawmakers come up with will have to suffice for years to come. She said she hopes to have her plan ready for introduction within two weeks.

Roberson said time was critical.

“I do have a sense of urgency,” Roberson said. “You’re right, we do need to get tax reform right.”

But he added, “It’s impossible to get anything meaningful done if we wait too late in the session. We’re running out of time. We truly are.”

Roberson has said he hopes to pass a tax bill out of the Senate by late March, possibly early April. Sandoval’s business license fee proposal is still being drafted, but he is tentatively scheduled to present his plan to the committee on March 17.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.