You can call it a margin tax. You can call it a modified business license fee based. You can call a commerce tax. It is still tax on businesses based on gross receipts, which is what 80 percent of the voters defeated in November.
On Thursday Gov. Brian Sandoval unveiled his latest iteration of this proposal hike tax more than a billion dollars.
“For the privilege of engaging in a business in this State, a commerce tax is hereby imposed upon each business entity whose Nevada gross revenue in a taxable year exceeds $3,500,000 …” the bill says, then listing tax rates that vary according to the type of business.
NPRI pulled the rates out of the bill:
The proposed rates are:
- Agriculture, forestry, fishing and hunting: .063 percent
- Mining: .051 percent
- Utilities and telecommunications: .136 percent
- Construction: .083 percent
- Manufacturing: .091 percent
- Wholesale trade: .101 percent
- Retail trade: .111 percent
- Air transportation: .058 percent
- Truck transportation: .202 percent
- Rail transportation: .331 percent
- Other transportation: .129 percent
- Warehousing and storage: .128 percent
- Publishing, software and data processing: .253 percent
- Finance and insurance: .111 percent
- Real estate and rental and leasing: .25 percent
- Professional, scientific and technical services: .181 percent
- Management of companies and enterprises: .137 percent
- Administrative and support services: .154 percent
- Waste management and remediation services: .261 percent
- Educational services: .281 percent
- Health care and social assistance: .190 percent
- Arts, entertainment and recreation: .24 percent
- Accommodation: .2 percent
- Food services and drinking places: .194 percent
- Other services: .142 percent
- Unclassified business category: .128 percent
I wonder if the Las Vegas newspaper will change its mind about endorsing Sandoval’s tax grab since publishing is among the highest taxed entities. And that money comes right out of the profit margin, if there is any.