As reported in the Sun, Nevada lawmakers heard last-minute pleas this week for several tax breaks supporting the film industry, seniors, and nonprofit medical providers.
Lobbyists for the movie industry and unions asked the Senate Finance Committee to pass SB321, a bill containing sales and fuel tax breaks for companies that make films in Nevada.
Movie companies are spending much less money in Nevada, mostly because other states have aggressively competed for their business, according to Tim Rubald, director of the state Commission on Economic Development. Spending on feature films in Nevada has dropped from $44.8 million in 2000 to just $14.3 million last year.
State tax officials estimate the tax break will take about $35,000 from state coffers each year.
However, supporters say that is vastly outweighed by film companies' contributions to Nevada's economy, and that the breaks will create jobs and spark millions of dollars in investments. To get the tax break, film companies must hire at least 30 percent Nevada employees, in full-time positions.
The committee also heard testimony on SB179, a bill sponsored by Senate Minority Leader Dina Titus, D-Las Vegas, which would expand eligibility for a property tax break for low-income seniors.
Finally, the committee considered SB501, a proposal to give sales and fuel tax breaks to nonprofit organizations that provide ambulance or air ambulance services.
Plus legislators may be moving toward revoking "green building" tax breaks (See "Tax break pulled 'out of the air' could cost state $900 million"), which they hurriedly passed in 2005.
In 2004 Chris Giunchigliani, then a state assemblywoman, was listening to a NPR show on building green and tax incentives while working on "smart growth" bills to introduce the next year and came up with a tax break plan of her own tax of 50 percent. If a business met a certain green standard, it would get a 50 percent property tax break for 10 years. And if a business applied in the fourth quarter of 2005, it could qualify for a 50 percent sales tax break on construction materials. It sounded so good that lawmakers rushed it right through.
Did the 50 percent number come from careful research and debate?
"I just pulled it out of the air," said "Chris G.
More and more builders were already going green because building green can save a lot of money in utility costs, even before tax breaks are considered. With the 50 percent tax break developers may save three times as much in taxes as they invest in building green. MGM Mirage, for example, estimates it will spend an additional $125 million to $225 million to make its $7.4 billion CityCenter a green development, which may net as much as $390 million in tax breaks.
The number that Chris pulled out of her hmm... turns out not to be an incentive but a lucrative gift to the big developers, while possibly costing the state nearly one billion dollars in revenue over ten years. I wonder who will have to make up this deficit in budget revenue while the legislature presides over statewide infrastructure shortfalls? Let's see: I'm not a casino, a developer, a senior, or a movie maker. Oh yeah, it must be me.