Excise tax removal on Nev. banks debated |
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Fri, 23 Feb 2007 19:19
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CARSON CITY, Nev. (AP) - Nevada lawmakers considered a bill that would repeal an excise tax and payroll fees paid by banks -- a measure that carries a $44 million price tag.The taxes and fees were part of $833.5 million in new revenue approved by lawmakers in 2003 to meet the needs of one of the nation's fastest growing states, and banks have been trying to get rid of the levies ever since.The measure to repeal the excise tax was proposed by Assemblyman John Marvel, R-Battle Mountain. Business and banking lobbyists on Thursday told the Assembly Taxation Committee there should be equity in taxation for all businesses.'Whatever the needs of state are, we are willing to contribute, but we want to be treated fairly,' said John Sande III, representing the Nevada Banking Association.But one lawmaker made it clear she wouldn't support a repeal.'I look at the state of Nevada and I say to myself, 'What needs to be fixed? Who's out there suffering?' And, boy, bankers never popped into my mind,' said Assemblywoman Peggy Pierce, D-Las Vegas.'There is no deafer ear than mine,' Pierce said, adding that during hearings in 2003 she heard many warnings that banks would leave Nevada en masse, and that never happened.Lawmakers wanted to know how the state would make up for the $44 million shortfall created by a repeal. Assemblyman William Horne, D-Las Vegas, said no one has answered adequately how to handle the lost revenue.Carole Vilardo of the Nevada Taxpayers Association suggested the repeal could be slowly phased in.In 2005, banking lobbyists failed in an effort to get lawmakers to trim the 2 percent payroll tax rate on banks to the 0.65 percent rate applied to all other businesses.Bankers also are urging the Legislature to repeal an annual $7,000-per-branch fee on banks. In 2005, state lawmakers exempted one branch per bank in each county from the $7,000 fee.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Council taxes to go up 4.5% on average 