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Where Do We Go from Here?

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Where Do We Go from Here? TAX TOPICS An electronic publication of the Nevada Taxpayers Association ♦ Serving the citizens of Nevada since 1922. ISSUE 20-3 December 19, 2020 WHERE DO WE GO FROM HERE? There is no question that when the new decade rolled around this past January no one envisioned 2020 as it currently exists. Fortunately 2021 is around the corner, and brings hope with it that the end of COVID-19 is near and some sense of normalcy will return. Unfortunately, at least for the beginning of 2021, Nevadans and the rest of the nation’s citizens will be dealing with a number of unknowns. At a state level some of these unknowns include the following (not necessarily in any particular order). Will we still be subject to emergency orders by the Governor? Will the Legislature be open for in-person interaction or will it operate virtually as it did for the two special sessions this summer? What will be the reaction to all the initiatives? Will both legislative political parties in Nevada be able to agree on revenue raising issues which might come before them? Will Congress pass a stimulus package that includes state and local governments so that budget cuts can be fully or partially restored? Will enough people take advantage of the approved COVID vaccines to provide “herd immunity” so the economy can begin to return to normal? ECONOMIC FORUM FORECAST The Nevada Economic Forum has completed their initial revenue forecast for the 2021-2023 biennium. The projections established by the Forum indicate available revenue for the upcoming budget cycle to be roughly $8.5 billion over two years. This figure represents a decrease of nearly $400 million from the current budget ending June 30, 2021. Additionally, it is a billion dollars below the agency budget requests of just over $9.6 billion for the 2021-2023 biennium. In response to the projected budget shortfall, Governor Steve Sisolak has asked agencies to prepare for budgets cuts of up to 12%. Should these budgets cuts be implemented it would decrease total agency requests by $1.1 billion over the biennium. The Economic Forum will meet May 1, 2021 to approve the final revenue projections for the 2021-2023 budget. To view the forecast of future state revenues presented at the December 3, 2020 meeting of the Economic Forum click here. GAMING AND SALES TAX INITIATIVES The initiatives to increase the sales and gaming taxes are statutory and have been certified. Both will now go before the 2021 Nevada Legislature, which has 40 days to act on the proposals. Should the Legislature not act upon, reject the measures, or create an alternative the proposals will then be placed on the ballot for consideration by the voters. Under these proposals the Local School Support Tax would increase from 2.6% to 4.1%. The Gross Gaming Tax would increase from 6.75% to 9.75%. Additionally, there are three legislative initiatives for constitutional changes to the net proceeds of mines to be considered by the Legislature. One or all of these initiatives may appear on the ballot. 2021 NEVADA LEGISLATURE In This Issue: Page Upon completion of the arduous vote counting and certification Senate Leadership ......................... 2 process, the 2021 Nevada Legislature will see significant differences Senate Members ............................ 2 from their 2019 cohort. The Republican Party had a net pickup of Senate Committees ........................ 2 four seats in the election. A total of three seats in the Assembly and one in the Senate. This outcome has significant implications for the Assembly Leadership .................... 3 upcoming legislative session. The makeup of the Legislature will be Assembly Members ....................... 3 12 Democrats and 9 Republicans in the Senate with 26 Democrats Assembly Committees ................... 4 and 16 Republicans in the Assembly. As a 2/3rds supermajority is Ballot Question Results ................ 5 required to approve a new tax or tax increase, unless it is put to a vote of the people. ISSUE 20-3 TAX TOPICS 2 SENATE LEADERSHIP Majority Leader ................... Nicole J. Cannizzaro Minority Leader .................. James A. Settelmeyer Assistant Majority Leader ................... Julia Ratti Assistant Minority Leader .............. Joseph Hardy Speaker Pro Tempore ........................... Mo Denis SENATE MEMBERS Chris Brooks ................................... D - Clark SD 3 Ben Kieckhefer ............................. R - Rural SD 16 Carrie A. Buck ................................. R - Clark SD 5 Roberta Lange ................................. D - Clark SD 7 Yvanna D. Cancela ....................... D - Clark SD 10 Dina Neal ........................................ D - Clark SD 4 Nicole J. Cannizzaro ....................... D - Clark SD 6 James Ohrenschall ........................ D - Clark SD 21 Mo Denis ........................................ D - Clark SD 2 Keith F. Pickard ............................ R - Clark SD 20 Marilyn Dondero Loop ................... D - Clark SD 8 Julia Ratti .................................. D - Washoe SD 13 Pete Goicoechea ............................ R - Rural SD 19 Melanie Scheible ............................ D - Clark SD 9 Scott T. Hammond ......................... R - Clark SD 18 Heidi Seevers Gansert ............... R - Washoe SD 15 Ira Hansen ...................................... R - Rural SD 14 James A. Settelmeyer ................... R - Rural SD 17 Joseph Hardy ................................. R - Clark SD 12 Patricia Spearman ........................... D - Clark SD 1 Dallas Harris ................................. D - Clark SD 11 SENATE COMMITTEES Commerce and Labor Health and Human Services Pat Spearman (Chair), Yvanna Cancela (Vice Julia Ratti (Chair), Pat Spearman (Vice Chair), Chair), Melanie Scheible, Roberta Lange, James Dallas Harris, Joe Hardy, Ben Kieckhefer Settelmeyer, Joe Hardy, Keith Pickard Judiciary Education Melanie Scheible (Chair), Nicole Cannizzaro (Vice Mo Denis (Chair), Marilyn Dondero Loop, (Vice Chair), Yvanna Cancela, Dallas Harris, James Chair), Dina Neal, Roberta Lange, Joe Hardy, Scott Ohrenschall, James Settelmeyer, Keith Pickard, Ira Hammond, Carrie Buck Hansen Finance Legislative Operations and Elections Chris Brooks (Chair), Mo Denis (Vice Chair), James Ohrenschall (Chair), Roberta Lange (Vice Nicole Cannizzaro, Julia Ratti, Marilyn Dondero Chair), Nicole Cannizzaro, Heidi Seevers Gansert, Loop, Ben Kieckhefer, Pete Goicoechea, Scott Carrie Buck Hammond, Heidi Seevers Gansert Government Affairs Natural Resources Marilyn Dondero Loop (Chair), James Ohrenschall Yvanna Cancela (Chair), Melanie Scheible (Vice (Vice Chair), Dina Neal, Pete Goicoechea, Ira Chair), Chris Brooks, Pete Goicoechea, Ira Hansen Hansen Revenue and Economic Development Growth and Infrastructure Dina Neal (Chair), Julia Ratti (Vice Chair), Mo Dallas Harris (Chair), Chris Brooks (Vice Chair), Denis, Ben Kieckhefer, Heidi Seevers Gansert Pat Spearman, Scott Hammond, Keith Pickard ISSUE 20-3 TAX TOPICS 3 ASSEMBLY LEADERSHIP Speaker ........................................... Jason Frierson Minority Leader ............................. Robin L. Titus Majority Leader .......... Teresa Benitez-Thompson Deputy Minority Leader (North) ......... Jill Tolles Speaker Pro Tempore ..................... Steve Yeager Deputy Minority Leader (South) .... Tom Roberts ASSEMBLY MEMBERS Natha C. Anderson ................... D - Washoe AD 30 Glen Leavitt .................................. R - Clark AD 23 Alexander Assefa .......................... D - Clark AD 42 Susie Martinez .............................. D - Clark AD 12 Teresa Benitez-Thompson ........ D - Washoe AD 27 Elaine Marzola .............................. D - Clark AD 21 Shannon Bilbray-Axelrod ............. D - Clark AD 34 Andy Matthews ............................. R - Clark AD 37 Annie Black .................................. R - Clark AD 19 Richard McArthur ........................... R - Clark AD 4 Maggie Carlton ............................. D - Clark AD 14 Brittney Miller ................................ D - Clark AD 5 Lesley E. Cohen ............................ D - Clark AD 29 Cameron (C.H.) Miller ................... D - Clark AD 7 Venicia Considine ........................ D - Clark AD 18 Daniele Monroe-Moreno ................ D - Clark AD 1 Jill Dickman ............................. R - Washoe AD 31 Rochelle T. Nguyen ...................... D - Clark AD 10 Bea Duran ..................................... D - Clark AD 11 Philip P.K. O’Neill ....................... R - Rural AD 40 John C. Ellison ............................. R - Rural AD 33 David Orentlicher ......................... D - Clark AD 20 Edgar Flores ................................. D - Clark AD 28 Sarah Peters .............................. D - Washoe AD 24 Jason Frierson ................................. D - Clark AD 8 Tom Roberts ................................. R - Clark AD 13 Cecelia Gonzalez .......................... D - Clark AD 16 Shondra Summers-Armstrong ........ D - Clark AD 6 Michelle Gorelow ......................... D - Clark AD 35 Clara (Claire) Thomas .................. D - Clark AD 17 Gregory T. Hafen II ...................... R - Rural AD 36 Robin L. Titus ............................... R - Rural AD 38 Alexis Hansen ............................... R - Rural AD 32 Jill Tolles .................................. R - Washoe AD 25 Melissa Hardy ............................... R - Clark AD 22 Selena Torres .................................. D - Clark AD 3 Sandra Jauregui ...........................
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