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IN BUSINESS GOVERNMENT NEVADA'S INFLUENCE ON TAXES MAY DISAPPEAR IN 2013 By Karoun Demirjian staff writer I n the past 5 1/2 years, Nevada's repre- sentatives have created a sphere of influ- ence in Washington when it comes to taxation. Despite its somewhat small stature, Nevada has continuously had up to three seats on the two committees — Ways and Means in the House and Finance in the Senate — charged with controlling the lion's share of U.S. tax policy. It's been a period of outsized political clout for the Silver State. But as the country gears up for a mas- sive tax fight that many now predict will spill into 2013, Nevada is on the precipice of losing all that political capital. Come next year, Nevada's representation on the tax committees will be zero. "It's a real loss, a serious loss," said for- mer Nevada Republican Rep. Jon Porter, who served one term on the Ways and Means committee alongside Democratic Rep. Shelley Berkley. "To have a small state on both sides of aisle was pretty powerful," he said. "Other members know: We're not going to mess with Las Vegas." Las Vegas, and Nevada generally, has much at stake in the policy debates that filter through the two main taxation committees: n The perennial sales tax deduction, worth almost $1,500 to Nevada families and over $450 million a year to the state as a whole. n The expiring mortgage refinancing an issue where the interests of Nevada, as an eager national petri dish for alter- native energy development, would not necessarily find natural defenders in other states. The committees can also be a platform for proactive lawmaking. OUT OF COMMITTEE: Shelley Berkley and Dean Heller once sat together on the powerful House Ways and Means Committee, but are now running against each other for a Senate seat. ed Porter on Ways and Means. tax deduction, potentially worth tens of thousands to any Nevadan underwater on a home loan. n The state's fast-growing Medicaid- and Medicare-eligible populations and near billion-dollar unemployment in- surance obligation to the federal govern- ment — issues not typically thought of as tax issues that are still considered by the committees. Nevada's tax dynasty started in 2007 when Porter and Berkley were appointed to Ways and Means while erstwhile Sen. John Ensign nabbed a seat on Senate Finance. Ensign kept that seat through his scandal-ridden next congress while then-Rep. Dean Heller replaced the oust- for a small state: You had both senators involved in major committees and two of three congresspeople? We probably and now we're going back," said Eric Herzik, professor of political science at UNR. Being on those committees, as Herzik and former members explained, is often as much about playing defense as it is about playing offense. Gaming and mining taxes? Non-start- ers with Nevadans at the table. Cutting alternative energy tax incen- tives? That's more politically divisive but "Arguably, we had too much influence Ways and Means at the end of the year. But as Nevada has built up its clout on the tax committees, Congress has become more politically divided. That swung the pendulum too far one way, means an increasing number of deci- sions have moved out of the committee room and to the final negotiating table, where Sen. Harry Reid ends up shoulder- ing the state's delegation-wide interests. "The larger point is that it does show that the Ensign loss matters," Damore said. Ensign's departure touched off the scramble for his Senate seat that, as a by- product, is wiping Nevada's tax commit- tee slate clean. COUNCILMAN: DONATION TO PATRON PARALYZED IN FIGHT PREFERRED torneys said the ordinance pointed out CRAZY HORSE TOO, FROM PAGE 11 donated, it should go to Kansas-area tour- ist Kirk Henry, who was paralyzed after a fight over a bar tab outside the club in 2001. Henry sued and is still owed some $10 million. Legal questions done properly." "The city did the right thing, and they followed the advice of their city attorney," he said. The fact also remains, Coffin added, that the city is not guaranteed the $1.46 "If anybody gets money, it ought to be million. Though the City Council ap- Mr. Henry," Coffin added. "The city is hurt anytime something like this happens, and the city had not corrected the problem (at Crazy Horse Too). I had a list of police calls for service a mile long from 1998 to 2001 and tons afterward. But licensing didn't clamp down on them. No one clamped down on them." won't consider the donation until it meets again in July. Meanwhile, Coffin will attempt to get something for Henry but doubts he will succeed because "some members of the City Council have already started to count the money." City Attorney Brad Jerbic said any mon- ey given as a donation to the city has to go into the city's general fund and cannot be given to Henry. Jay Brown, one of the attorneys rep- resenting Canico, said "everything was Mr. Henry." 12 | 2 JULY 2012 | If he had a preference, Coffin added, "they could have the permit without the city getting the money. It wouldn't bother Aside from the donation, a city resident also filed a protest with the city contend- ing the special use permit bill needed Planning Commission review before go- ing to the City Council. proved the special use permit June 20, it Ward 3, filed a letter June 15 with the city clerk citing this ordinance: "Except where immediate concern for the public health, safety or general wel- fare dictate otherwise, the substance of any proposed amendment to the text of this Title shall be presented to the Plan- ning Commission for its recommenda- tion." Gebeke did not say so in his letter, but he works for the city's Planning Depart- me if it happened that way because I feel ment. the money would be most appropriate for During a meeting of the city's Recom- mending Committee on June 19, city at- by Gebeke did not fit the bill being con- sidered. In minutes of the committee, Val Steed, chief deputy city attorney, began by say- ing the bill would "authorize re-establish- Steve Gebeke, who lives in Coffin's ment of certain nonconforming uses un- der specified circumstances." He went on, saying the proposed bill would work "independently" and would not change the current text of Title 19, which is the city's zoning code. "It's not something that a person will read every day," Steed said. "It's generally not operable in the city. It was a less nec- essary exercise to take it to the Planning Commission than it is (with) a typical text amendment." The committee's three members voted to recommend the bill to the City Council for final action. ASSOCIATED PRESS FILE PHOTOS Berkley may be the best example of that: She has had the longest tenure on a tax committee and is the only Nevada House member to have spent the bulk of her time in Ways and Means in the ma- jority. From that perch, she co-authored legislation on tax incentives for small businesses and extending the alternative minimum tax. She also made a push for a reduced estate tax that ended up being incorporated into 2010's year-end tax bill. Berkley, who is running for Senate against Heller, will give up her seat on 20120702_VI11_F.indd 12 6/28/12 2:05:09 PM