Special account, not a tax increase to pay for Washoe County tax refund
By Susan Voyles, Reno Gazette-Journal
Washoe County commissioners will not tax vehicle owners more to pay court-ordered tax refunds for Incline Village homeowners — a decision that risks the county not having enough cash if it should be hit with a big lawsuit or some other calamity.
The commission agreed Tuesday night not to act on a proposed ordinance to raise the vehicle registration tax by 1 percentage point.
“There’s a sort of axiom that you don’t raise taxes during a recession,” Commissioner David Humke said. “This is a broad-based tax paid by everyone who owns a motor vehicle in Washoe County.
“It’s just an onerous tax.”
County Manager Katy Simon cautioned against taking $7 million from the county’s risk management fund without a plan to repay the money.
“There is a risk of depleting those reserve funds and not replenishing them,” she said. “I know you are aware of that.”
The risk management fund pays for county liabilities, such as trip-and-fall accidents, lawsuits and medical expenses for retired public safety workers with heart and lung illnesses.