57°F
weather icon Mostly Clear

Victor Joecks: Democrats want new taxes without a two-thirds vote

Some Nevada Democrats aren’t satisfied with having a Democratic governor and large legislative majorities. They also want to ignore the state Constitution to make it easier to raise taxes.

In the mid-1990s, Nevadans overwhelmingly approved a constitutional amendment mandating that tax increases receive two-thirds approval from each legislative body. Alternatively, a simple majority of legislators can seek voter approval for a tax hike.

“An affirmative vote of not fewer than two-thirds of the members elected to each House is necessary to pass a bill or joint resolution which creates, generates or increases any public revenue in any form,” Nevada’s constitution states.

That’s all-encompassing and unambiguous, which is a problem for Gov. Steve Sisolak.

His budget, despite his claims to the contrary, contains a tax increase. Under current law, the modified business tax rate will decrease in July. But Sisolak wants to maintain the current rate in order to help fund his record-setting spending spree. While Democrats have a supermajority in the Assembly, they are one vote short of two-thirds control in the Senate.

That leaves Democrats two constitutional choices. Either cut a deal with Senate Republicans to get a vote or increase spending by 10 percent instead of 11 percent.

Democrat leaders, however, are considering a third option: ignoring the Constitution.

Senate Majority Leader Kelvin Atkinson said recently he doesn’t believe extending a tax rate requires a two-thirds vote. Sisolak has hinted that he agrees. Their argument is that because the rate stays the same, it’s “not a new tax,” in the words of Atkinson.

But that line of reasoning falls apart once you look at what the Constitution actually says.

To extend a tax rate, the Legislature must pass a bill. That bill will increase revenues, which is exactly why Sisolak wants the tax rate extended. The Constitution requires a bill that “increases any public revenues in any form” to pass with a two-thirds vote in each house or receive voter approval.

A fifth-grader can understand what that means. Not only that, the Legislative Counsel Bureau has already weighed in on this very issue. The LCB is a nonpartisan agency that provides services — such as writing bills or conducting research — to every lawmaker. It also offers advice on which bills require a two-thirds vote.

In 2011, 2013, and 2015, the Legislature faced an analogous situation. In each of those sessions, a package of tax hikes, commonly called sunset taxes, was set to expire. Without controversy, the LCB determined that a two-thirds vote was required to extend and eventually make those taxes permanent. In 2017, it even concluded that a two-thirds vote on the capital improvement budget was necessary after determining it entailed extending an existing property tax rate.

This is a no-brainer. Extending a tax requires a two-thirds vote.

If Democrats insist otherwise, they will sully the reputation of the LCB and invite a lawsuit that could force a special session.

Victor Joecks is a columnist for the Las Vegas Review-Journal.

Don't miss the big stories. Like us on Facebook.
THE LATEST
EDITORIAL: Biden extends state, local slush funds

Joe Biden’s aptly misnamed American Rescue Plan, passed in 2021, dedicated $350 billion for state and local governments to stem budget losses due to pandemic business closures and subsequent tax shortfalls.

‘Taking root’: Nevada’s future with psychedelic therapy

A Nevada working group will study the benefits of psychedelic medicine, such as magic mushrooms or “shrooms,” and make recommendations for future policies.

AG Ford investigating Nevada’s ‘fake elector’ scheme

The Democratic Attorney General has been mum about his plans, but sources confirmed an investigation into Nevada’s six Republican electors who declared Trump the winner in 2020.

Nevada AG’s office says Esmeralda sheriff must resign

The state argues in a District Court filing that Esmeralda County sheriff Nicholas Dondero failed certification as a peace officer and has to leave office.