August '08 Nevada Government—Governor Jim Gibbons Column

Tax Amnesty Program Exceeding Expectations

Governor Jim Gibbons’ tax amnesty program that lawmakers used to help fill the state’s budget shortfall has exceeded expectations, meeting the lawmakers’ appropriation with the program just half over, the Governor announced.

Since beginning July 1, the amnesty program has generated collections of about $6.6 million, almost $4.6 million of which will be directed to the state’s General Fund. Legislators allocated $4 million from the tax amnesty program to help meet the state’s revenue shortfall during June’s special legislative session.

The remaining balance of revenues collected will be allocated to local governments based on existing tax formulas.

“During this incredibly difficult economic time, I’m glad we were able to utilize a creative solution to help generate additional revenue without raising taxes,” Gibbons said. “While it obviously doesn’t solve all our problems, the program has already generated $4 million we didn’t have to take out of education, human services or any of our other important programs.”

The Governor proposed the amnesty program in May and the emergency regulations were approved by the Nevada Tax Commission in June. The program will run through Sept. 30.

The program allows individuals and businesses to pay the state certain delinquent taxes they owe without having to pay the penalties and interest. Sales and use taxes, modified business taxes and business license fees are included in the program.

Dino DiCianno, head of the Nevada Department of Taxation, said he’s pleased with the results of the program so far and expects more revenue to come in.

“In previous amnesty programs the majority of revenue collections are made during the last weeks of the program because delinquent taxpayers will hold on to their money as long as they can,” DiCianno said. “I don’t see why that pattern wouldn’t hold true with this program, so I still expect to see more revenue come in to the state and the local governments through the program.”

Through the first half of the program the state has collected 3,165 delinquent payments. Of those payments, nearly $3.5 million was paid in modified business tax while more than $2.6 million was paid in sales and use tax.

The Governor said the success of the program will help shore up state finances for the remainder of the fiscal year.

“We’re already seen some revenues come in lower than the Economic Forum projected at the end of June, so any additional revenue we collect through the amnesty program will help balance our budget for the remainder of the fiscal year,” Gibbons said.

Additional information about the program is available through the Department of Taxation Web site at www.tax.state.nv.us.

Governor Appoints Teuton Family Court Judge

Governor Jim Gibbons announced the appointment of Robert Teuton to fill an open seat in Clark County’s family court.

Teuton will fill the remainder of the term of retired Judge Gerald Hardcastle, which runs through the end of 2010. Teuton was one of three finalists for the appointment recommended to the Governor by the state Judicial Selection Commission.

“Mr. Teuton’s experience protecting the interests of children and families will be a valuable asset to the family court,” the Governor said. “I’m confident he will do an excellent, fair job presiding over the sensitive and important issues that go before family court judges.”

Teuton currently serves as the Assistant Clark County District Attorney supervising the Family Support Division, which includes 13 attorneys and 250 staff. He previously spent seven years working in the Clark County Family and Youth Services Division.

“I’m very thankful to the Governor for showing faith in me to be a fair judge,” Teuton said. “The cases that go before family courts are incredibly important, and I will do my very best to ensure everyone who comes before me is treated with dignity and respect.”

Teuton will be serving in the Eighth Judicial District Court, Family Division Department D.

Gibbons said he was impressed with the work of the Judicial Selection Commission, which conducted its business in public for the first time when considering applications for this position.

“I’m very pleased that the commission sent over three highly qualified candidates,” the Governor said.

Governor Encourages Nevadans to Evaluate Eligibility

for Economic Stimulus

Governor Jim Gibbons today encouraged all Nevadans, but particularly seniors and disabled veterans, to examine their potential eligibility for federal economic stimulus checks before a key deadline passes.

More than 43,000 Nevadans receiving benefits from Social Security or Veterans Affairs who are eligible for federal economic stimulus checks still haven’t received them, according to data from the Internal Revenue Service.

Under the stimulus legislation, the IRS calculates eligibility for a stimulus check once an individual files an income tax return. However, recipients of certain Social Security or Veterans Affairs benefits aren’t required to file tax returns because their benefits aren’t taxable.

These individuals must file tax returns before Oct. 15 in order to receive their stimulus checks.

“Nearly thirty percent of Nevadans receiving Social Security or disability benefits from the Veterans Administration have not received the economic stimulus check they’re entitled to,” Gibbons said. “I encourage those Nevadans receiving benefits to determine whether they’re eligible for this money. At a conservative estimate of $300 per claimant, that’s nearly $13 million in payments for Nevadans. Every dollar counts, particularly when you are living on a fixed income, and people should file to receive the monies they are due.”

Stimulus checks are not counted as taxable income and do not affect eligibility for other benefits from state agencies, Gibbons said.

“There’s no reason for people not to file,” the Governor said.

More information about the federal economic stimulus checks and downloadable forms needed to file a tax return are available at the IRS online at www.irs.gov.