Republican lawmaker: Mining tax increase wouldn’t have to violate “no-tax” pledge

CARSON CITY -- A Republican lawmaker from southern Nevada said increasing the amount of taxes mining companies pay wouldn’t necessarily violate any no-tax pledges if such a move were offset by a tax cut elsewhere.

Sen. Michael Roberson, R-Las Vegas, said Monday he wants to learn more about how the mining industry is taxed in Nevada. If it were determined mines were underpaying their tax bills could be increased, so long as the payroll tax or some other levy were cut by an equal amount.

“I pledged to my constituents that I would not raise taxes and I’m not going to do that,” Roberson said. “You can raise taxes in one area and offset them by lowering taxes in another area.”

Roberson is among a new group of conservative, freshmen lawmakers who rode into office on the back of a pledge like the kind circulated by the group Americans for Tax Reform.

The pledge is a document candidates and elected officials sign stating they will oppose tax increases.

The pledges frequently become political footballs, especially in Republican primary races where candidates who refuse to sign them are often the subjects of campaign attack ads.

Roberson’s comments Monday followed a hearing before the Senate Judiciary Committee, of which Roberson is a member.

The hearing covered Senate Bill 86, a proposal by Sen. Sheila Leslie, D-Reno, to strip Nevada Revised Statutes of provisions that extend eminent domain rights to mining and sugar beet production companies.

During the hearing Roberson asked Nevada Mining Association president Tim Crowley a series of questions about how the industry is taxed.

Activists for the Progressive Leadership Alliance of Nevada have long stated the “net proceeds of minerals” tax in Nevada results in mining companies paying less than their fair share in taxes because they’re allowed to deduct for expenses in calculating what they owe.

The mining industry says they are one of the few businesses in Nevada to pay an industry-specific tax in addition to other taxes.

Crowley says mines pay more than $200 million annually in state and local taxes.

During the hearing Roberson was clearly annoyed Crowley was unprepared to answer his questions.

Roberson said he wants to determine for himself if mining pays enough in taxes and that, if not, perhaps the state’s revenue structure could be altered to increase the amount from mining and decrease what other businesses pay in payroll tax.

“I’m not at all saying I would support the restructuring. I’m just gathering information,” Roberson said Monday evening. “I may determine for myself that mining is paying enough and they shouldn't be taxed more. I want to get a straight answer. I do not feel like I got a straight answer today.”

Republican Gov. Brian Sandoval, who didn’t sign a tax pledge, has vowed to oppose any and all tax increases and put pressure on Republican lawmakers to back his position.

Sandoval is seeking to balance the budget by spending no more than about $5.8 billion from the general fund from 2011-13, a 6.4 percent decrease from the previous two years. Democrats have said they think Sandoval's propsod cuts are too steep, but haven't identified how they might raise more money. Nor do they have enough votes among their own party members to get the two-thirds support they need to increase taxes. They would need unanimity among themselves plus three Republican senators and two Assembly members, currently they have neither.

A spokeswoman for Sandoval did not immediately respond to a question about whether or not the governor would accept a tax revenue shift from payroll to mining.

Roberson says he supports Sandoval “come hell or high water” on the issue of taxes.

Although mining has long been among the industries most entrenched in the state’s power structure, it has felt more heat in recent legislative sessions as budgets for schools and social services are deeply cut.

In addition to outside pressure from progressive and environmental groups, the Nevada Mining Association is going through internal changes.

The trade association recently severed its relationship with the high powered lobbying and public relations firm R&R Partners.

Pete Ernaut, a partner at R&R, is also a close friend and unofficial adviser to Sandoval.