Las Vegas Review-Journal (Sunday)

Another try to use a mining tax to raise revenue failed in the Senate.

- By Colton Lochhead and Bill Dentzer Review-Journal Capital Bureau

CARSON CITY — Senate Democrats on Saturday night resurrecte­d a previously scuttled proposal to raise taxes on mining companies, amending it to limit its impact on smaller mining operations and adding a provision to send $100 million directly to the state’s public schools.

But the effort again failed to win any Republican support and died on a party-line vote.

The move on Assembly Bill 4 came as the Legislatur­e rushed to adjourn its 11-day-old special session, called to deal with a $1.2 billion state budget hole.

The changes in the mining tax bill were intended to sway at least one Republican to support it, because it requires two-thirds support to pass. But the minority held firm and the final vote was 13-8. Democrats had positioned the bill as their effort to meet Republican concerns on mining industry impacts and restore more schools funding.

As the Senate prepared to vote, Assembly Speaker Jason Frierson issued a statement attacking Republican­s for opposing the schools funding increase and said lawmakers

“need to bring the special session toa swift close.”

“We are firm in our position that any solution should be immediate and real, and further, that the burden should not fall on the backs of families who have been laid off, can’t get insurance and are staying home for Nevada,” he said.

The Assembly convened shortly before 8:30 p.m. to

pass an amended bill on furloughs to state workers and cuts to agency budgets. The amended bill halves the number of furlough days, from 12 to six, and restores nearly $139 million to the budget through transfers and reallocati­ons of other existing revenues. The Assembly approved the bill about 9:30 p.m. on a party line vote, 29-13.

Just more than $81 million is restored to health care and social services, including $49 million to optional Medicaid services that faced eliminatio­n. Another $41.5 million covers the cost of the reduced furloughs — $25.8 million — and also reinstates merit pay for state workers and cancels layoffs.

Mining tax proposal

The revised measure, which together with another change in the mining tax would raise $155.6 million, would still have limited the deductions mining companies can

claim on their industry taxes to 60 percent. But it would have exempted mining companies with $10 million or less in gross proceeds. Of the 104 mining companies in the state, only 38 gross more than $10 million and would be taxed.

Despite the new limit, the amended bill would raise nearly as much as the previous version.

The Legislatur­e was back in chambers Saturday after not meeting at all on Friday but didn’t convene until 6 p.m. Earlier in the day, Democrats announced they had gained the support

Sen. Keith Pickard, R-Henderson, for an amended version of the mining tax bill. But Pickard quickly backed away from it after meeting with his caucus.

“I had every intention of voting for it until I sat with my caucus this morning who showed me a better option,” he said via a text message.

AB4 was first introduced Thursday night and quickly passed out of the Assembly, where Democrats hold a supermajor­ity and can approve revenue increases without any Republican votes.

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