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Mr. R* S« Bennetti Las Vegas - March 2, 19^9 R b5 ( cc - Mr* R* jj§* Claries) Confirming our telephone conversation yesterday regarding AB 296 proposing & 2^ tax ©a gross revenues of Public Utilities! I dolose clipping fro® last nights Revlew- Journal on this subjeot and you will note the bill would require renewal of city franchises at 25-year intervals* While we have no franchise in the strict sense of the word, we operate on a permit from the City to use the streets and alleys for our water mains, which expires in I960* 1 do not know what consideration is offered the city by the other utilities in Las Vegas and Reno, but so far as the Las Vegas Land and Water Go. is concerned we furnish water free for fire practice, fire protection, flush- ing the sewer mains and also free water service to municipal buildings, including the City Hall, Police Station, Fire Department, etc* In addition, we have been paying for several years a City License tax of flOO.OO per month, whloh Is presumably based on gross revenues* However, If this AB 298 is passed, it will increase such tax to about $3o00 per year which, in ay opinion, places an unjust burden on the utilities. In telephone con­versation with Mr, Harks yesterday, I am advised he is alert to this M I X and will oppose it, although it may be difficult to defeat it in need for additional revenues* view of the urgent A. M, Folger