For a number of reasons, the District is currently on Fiscal Watch by the Nevada Department of Taxation’s Committee on Local Government: late filings, and continuing problems with internal controls (recently evidenced by an IVGID error resulting in nearly a $12,000 cost for Washoe County to mail out 8200 corrected property tax bills).

The $1,000 increase in most Incline Village property tax bills, due primarily to IVGID’s increased Facility Fees, has drawn more attention. IVGID has acknowledged that approximately 150 property owners called them to voice objections to the recent tripling of the facility fees ($450 last year to $1375 this year). I’ve personally spoken with a number of my neighbors who are retired and on fixed income and reeling under the strain of this financial burden.

The Department of Taxation is the agency charged with protecting the citizens of the state of Nevada against this kind of uncontrolled tax burden. Specifically, NRS354.472 details the purposes of the Local Government Finance Act, in part,

“1 (d) To provide for the control of revenues, expenditures and expenses in order to promote prudence and efficiency in the expenditure of public money.

(e) To provide specific methods enabling the public, taxpayers and investors to be apprised of the financial preparations, plans, policies and administration of all local governments. 2. For the accomplishment of these purposes, the provisions (of NRS 354.470 to 354.626, inclusive,) must be broadly and liberally construed.”

That phrase “broadly and liberally construed” places the authority, as well as the duty of the Committee and the Department to provide for the “control of revenues”. Allowing something to be collected as an unlimited “fee” when it has all the earmarks of a tax does not fulfill that duty. Even the District’s General Manager referred to the fees as an “annual tax levy” in the glossy new Fall IVGID Quarterly.

No prudence, no efficiency

We’ve seen the resultant losses and ever-growing need to feed the monstrous assortment of poorly managed businesses: bars, restaurants, golf courses, and tennis/pickleball center all operating under the “umbrella” of public recreation. Even the fairly well-run ski area has looming capital projects where revenues will not come close to meeting the expenses. Financial reports for the individual operations are either non-existent or extremely deceptive, calling the fees operational revenue.

Calling IVGID’s collection of millions of dollars from property owners a “fee” (with no cap), has enabled the very imprudence and inefficiency in spending the public’s money that NRS354 was intended to prevent. IVGID builds up millions from these unrestricted fees in its Recreation and Beach funds, undermining the need for responsible spending.

IVGID’s reporting serves to confuse, not apprise, the taxpayers

For years, IVGID has insisted and continues to insist on listing the Facility Fees as operational revenue, even though they have nothing to do with operations. And as we have seen, IVGID has repeatedly failed to enable the public, taxpayers and investors to be apprised of its financial preparations, plans, policies and administration. Among other things, remember how little public outreach occurred before increasing the fee for the $11M structure to house a couple more restrooms and a snack shack.

Even if the reporting improves, nothing will stop IVGID from increasing and collecting this limitless “fee” unless the Department intervenes. The fee originated in 1968 when property owners were given little choice if they wanted to secure the beaches promised by the developer. They were told the fee would never increase. That $50 fee is projected to be nearly $2,000 per parcel in just 5 years, even more when costs for longstanding needs like the Snowflake Lodge and Rec Center gymnasium are added. Had IVGID’s charges been considered a tax, with a 3% cap like our property taxes, this year’s charge to each parcel would only be $270, not $1375. In 2030 it would be just $315, not $2,000.

Many of our property owners are on fixed incomes. Although IVGID may never be faced with the inability to pay their bills because they have this unlimited fee, the same does not hold true for these property owners. For them the severe financial emergency is already here.

Please contact the Department of Taxation’s Executive Director, Shellie Hughes, shughes@tax.state.nv.gov and ask her to protect our taxpayers from unlimited future increases to this tax in fee’s clothing.