The Vegas Voice - The Need For A Tax Freeze

The Need For A Tax Freeze (Vegas Voice January 2005)

DIALOGUE WITH DINA

First, let me wish you all a Happy New Year. I approach 2005 with great optimism while also realizing that we face serious challenges. One of these is skyrocketing property taxes.

As you may have heard, I will be introducing a bill on the first day of the 2005 legislative session to freeze your property taxes at last year's level for a full year. If it passes, this bill would mean that your property taxes will not go up in 2005. In this month's column, I will explain why I believe the freeze is the correct approach to the problem of escalating property values, with the attendant rise of property taxes that we all face.

In recent years, largely because of our tremendous growth rate, the price of property has escalated. Everyone wants their home to increase in value, but the down side is that property taxes also increase accordingly. The tax rate has not changed, but the rising assessed value results in higher taxes being levied. If you are in the market to sell your home, this is a good thing; but if you cannot afford or are not inclined to sell and move, then you are stuck with a higher tax bill. Unfortunately, this often happens to seniors on fixed incomes and people in lower economic brackets, thus making the problem even worse.

There are many questions, proposals, and examples from other states to consider. Each has its advantages and disadvantages. For example, should we follow California's lead with a Prop 13-type measure? Should we cap tax increases? If so, at what level? 6 percent? 4 percent? 2 percent? Should we amend the state constitution to allow for split rolls so commercial property can be taxed at a different rate from residential property? Should we follow Utah's example and tax one's home at a different rate than vacation condos or rental property? Should we revise the way we calculate assessed value?
The problem is, we don't have much time to come up with a solution. The Legislature must act by March to affect your next tax bill which comes out in June. I know how the Legislature works; it is not fast, nor is it easy, especially when it comes to taxes. We all saw that in 2003 when the Legislature had to reconvene in two special sessions before agreeing on a tax package. The worst thing we can do is rush to find a solution without taking the time to consider all the possibilities in a rational, deliberate way. If we make a hasty decision that is unfair and short-sighted, it will be extremely difficult to undo it and Nevada's future will be adversely affected.

I say, let's give taxpayers some immediate relief and take time to come up with a good, reasonable long-term solution whereby local governments and school districts still have the revenue they need to provide essential services and taxpayers are not burdened with bills increasing at exorbitant rates. That's why I want to freeze last year's assessed values for one year to give us time to more thoroughly study and debate the issue and establish an equitable and reasonable property tax policy for all Nevadans.

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