Nevada's Governor Jim Gibbons has called a press conference to showcase his rejection of the state legislature's tax package and spending plan presented to him last week.

Nevada lawmakers Friday delivered to the governor their $6.8 billion, two-year state budget along with SB429--a $781 million package of tax increases to fund the plan.

The plan increases sales taxes, business levies and license fees and vehicle registration fees. A "sunset" clause would allow most of the increased taxes to be erased in 2011.

Under SB429, the state's 6.5 percent sales tax would increase by 0.35 percent; and payroll taxes, now at 0.63 percent, would increase to 1.17 percent for firms with payroll of more than $250,000 a year. The rate drops to 0.5 percent for companies with payrolls under $250,000.

The measure also increases the state's business license tax from $100 to $200. There's a similar provision in AB146, also sent to the governor. There's also a vehicle fee increase, included both in
SB429 and AB146.

As he accepted the bill Friday, Gibbons said, "Giving the governor a $1 billion tax increase in a recession was the worst thing they can do for the American and the Nevada people." He added, "I'm confident of what I've watched and seen of the Legislature that we're going to veto this bill."

AB562 is the $6.8 billion appropriations act which would fund state government operations.

On Wednesday the Governor's office sent notification to the media that Gibbons would veto the bills at the Capitol Building in Carson City at 5 p.m.

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