Banks Help Schools with Rebate Donations

Nevadans can expect $75 to $275 back

The state is giving it to the taxpayers once again, but this time the news is more welcoming.

The first round of checks in the Department of Motor Vehicles' rebate program will hit mailboxes statewide beginning Saturday, one week after the sales tax in Clark County increased without fanfare.

The individual rebate checks range from a minimum of $75 to a maximum of $275, depending on the amount the person or business spent to register a vehicle in 2004.

"The checks are in the mail," Gov. Kenny Guinn said Wednesday at a news conference in Las Vegas. "This is a historic day in Nevada: the first time the state has returned surplus tax money to its rightful owners, the people."

Even as Guinn cheered on the rebate Wednesday, he seemed aware that many people consider the amount of the rebate negligible. The governor said if that's the case, residents should donate the check to a charity.

But Saul Carrere didn't view his check as expendable as he forked over $50 for a half tank of gas Wednesday at a Terrible's on Rancho Drive. Carrere said he'd probably receive $275 back from the registration of his Dodge pick-up that takes $80 to fill twice a week.

"I'll pay for gas," he said, his expression unchanged.

Most of the checks will be for the minimum $75. About 320,000 Nevadans will receive the full $275 rebate. The amount of the rebate is based on the 2004 registration, minus the supplemental government services tax charged in Clark County, and minus sales tax, specialty plate fees, title fees and miscellaneous charges.

Cara Roberts, spokeswoman for the Las Vegas Chamber of Commerce, said she thought the checks "will have a great effect on the Nevada economy."

"We're asking people to spend the money locally," said Roberts, who plans to heed her own advice, splurging on a pair of Betsey Johnson pumps.

One well-accessorized female politician, Lt. Gov. Lorraine Hunt, also had shoes on her mind.

Hunt, a Republican candidate for governor, said she will buy sneakers for grandson Roman and dance shoes for granddaughter Zia.

The refunds aren't just for people who registered vehicles in 2004. Senior citizens with a valid Nevada identification card will be receiving checks for $75 beginning Saturday.

A second batch of refunds are expected to be sent in December for seniors who have valid drivers licenses yet did not register a vehicle last year.

Guinn's news conference was designed to inform the public about the money citizens have known was coming their way since last spring when the Legislature approved the $300 million rebate of surplus sales tax revenue.

About 1.9 million checks have been delivered to post offices around the state this week. But for security reasons, they will not be delivered during the work week.

"We specifically asked the post office not to deliver any of those checks until Saturday," said Dave McTeer of the state Department of Administration.

The checks will arrive in an oversize envelope with the state seal in the upper left hand corner. Inside will be an information sheet from the governor's office about the check, which must be cashed within 180 days.

The state is also sending along a message from the Internal Revenue Service saying there may be consequences for taxpayers who itemized their 2004 federal tax returns and received a deduction based on the amount of their vehicle registration.

Although the federal tax rebates several years ago were widely anticipated by the middle class for purchases of new appliances or to make home improvements, the comparatively small amount of these checks is leading many to give them away.

The Clark County School Board has asked residents to donate funds to the schools, and has bank accounts established at Bank of America, Nevada State Bank, U.S. Bank and Wells Fargo Bank for that purpose.

A number of community leaders are using the rebates to draw attention to causes they support.

Pat Mulroy, general manager of the Southern Nevada Water Authority, said she will donate her rebate to the Bishop Gorman High School fund. Las Vegas Mayor Oscar Goodman said he'll reserve his rebate for efforts to bring an academic medical center downtown.

The rebates continue to be something of a political shuttlecock, volleyed across partisan lines in the tried-and-true game of one-upsmanship.

State Sen. Bob Beers, a Republican running for governor, issued a press release reminding people it was his legislation in December 2004 that led to Guinn's proposal.

"I am grateful to the governor for joining my fight for this tax rebate, and his leadership and support was critical to its passage when Assembly Democrats dug in their heels to force using these surplus taxes to hire more government employees," Beers said in the statement.

In an interview, Beers said he and his wife will get back a total of $150 for their two vehicles, and will use the money to cover their next registration fees.

Senate Minority Leader Dina Titus, a Democrat running for governor, said she will "take her $75 and put it into her campaign so the people of Nevada get a little bit more back when she is governor."

State Sen. Maggie Carlton, D-Las Vegas, who argued Nevada should not return a surplus while the state lags behind on most social indices, said the checks for four vehicles in her household will be donated.

"I'm probably going to donate it to the Katrina relief fund," Carlton said. "There's so many (evacuees) here that need help."

U.S. Rep. Jim Gibbons, a Republican running for governor, and his wife Dawn, who is running for Congress, announced they were donating their checks to the Nevada Patriot Fund, an account established to support the families of Nevada military personnel killed in the war on terrorism.

Guinn said his rebate will likely go to support the Shade Tree shelter for domestic abuse victims.

Mary Carter's charity begins at home.

"I'm putting it in my bank account," said Carter, a 26-year-old grocery clerk who estimates her refund will be around $100. "It'll probably cover my electric bill."

In true Las Vegas fashion, entertainer Frank Marino, who hosts La Cage as Joan Rivers, has a different sort of electric bill in mind.

"I'll use my $275 to pay the power bill on my license plate," Marino said. "My car is all what they call pimped out. It's got neon lights and plates. My car's got so many pimped up things I'll spend my money to power them."

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.