Cyndi Loza

Four revenue sources identified to repair and upgrade schools in Washoe County have drawn criticism from those who face the burden of the increase.

After nearly seven months of discussion, the School Construction and Revitalization Advisory Committee narrowed down possible increases for the Washoe County School District using these possible revenue sources:

• sales tax
• modified business tax
• government services tax
• real property transfer tax

Since September, the school district has identified a $393 million need to upgrade older schools, classrooms and technology.

Wayne Capurro, president of the Reno/Sparks Association of Realtors, said he agreed with all of the revenue sources except the real property transfer tax because it is “industry specific” and not a broad-based source of money.

Capurro said the tax targets the 5 percent to 6 percent of property buyers and sellers in the state, which is unfair.

“We’re willing to be a part of the solution but not be the solution,” Capurro said.

Financial institutions would oppose an increase in the modified business tax since they pay three times as much as general businesses, said Bill Uffelman, president of the Nevada Bankers Association. The current tax rate for financial institutions is 2 percent, while general businesses pay 0.63 percent.

“To suggest we should pay additional taxes at this time is the old classic (saying) ‘Don’t tax yourself out of a recession,’” Uffelman said.

Carole Vilardo, president of the nonpartisan Nevada Taxpayer Association, also did not agree with a tax increase in the modified business tax.

“It’s one of the few (revenue) sources that is split by the state and local government,” Vilardo said. “I’m amazed that it would actually be considered.”

The proposed increase would affect incoming businesses, especially ones with a large number of employees since the tax is based on gross wages on a quarterly basis, Vilardo said.

“If I want to be in the Northwest part of the state and I’m looking at the tax structure and what my tax liability is going to be — and that is always one of the concerns — it’s just as easy to locate in Storey County with my business,” Vilardo said.

The committee expected opposition to an increase in any taxes, said Debbie Smith, D-Sparks and member of the committee.

“We only have so many possibilities to draw from because we can’t invent a new tax for this package,” said Smith, who added the committee was made up of business leaders and school district officials.

“We’re trying to look at the ideas that are broad-based in nature, and I think we all have to remember that we won’t be able to attract new businesses to Washoe County if we don’t have good schools.”

The committee aims to generate about $25 million a year from the tax increases to put into bonds.

The needed renovations vary at each school.

• At Anderson Elementary School, for example, old carpeting, windows and playgrounds must be replaced and upgraded.
• At Peavine Elementary School, the roof must be replaced.
• Robert Mitchell Elementary’s aging boiler must be replaced.
• Broken windows, ancient air conditioners and technology infrastructure ailments plague Reno High School.

The committee will vote on the plan at the final meeting scheduled April 23 at the Reno-Sparks Convention & Visitors Authority board room. It has until May 1 to make recommendations.