Instead of the cheap, clean and plentiful power envisioned by free-market think tanks, we have skyrocketing power bills, utilities threatening bankruptcy, and officials falling all over themselves to speed the construction of new power plants. Here in Nevada, state Sen. Dean Rhodes, R-Tuscarora, has proposed dropping the sales tax on materials used to create wind, solar or geothermal power. If it's approved by the Legislature, the proposal would appear on the November 2002 ballot, because voters must sign off on total exemptions from the state sales tax. In effect, Rhodes' plan would simply add to the list of things that aren't subject to sales tax, like the proceeds of mines, gasoline, food, prosthetic devices, university textbooks, gas, electricity, water, newspapers, mobile homes, airplanes, personal property sold to or by religious or charitable organizations, and goods sold outside the state. And, thanks to casino executive Steve Wynn, fine art worth millions is also exempt, so long as it's displayed to the public and so long as locals get in for half off.
Every exemption means the state is getting less money, and thus the budget is that much tighter.
In fact, eliminating some sales tax exemptions is a common theme when discussing how the state can overcome a potential budget shortfall. And it's not just sales tax, either. Bill Walters gets his way, golf courses may soon join the exemption parade. Such a deal. For Walters, that is.