A tax by any other name would smell as sour

by Thomas Mitchell

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:

  1. Agriculture, forestry, fishing and hunting: .063 percent
  2. Mining: .051 percent
  3. Utilities and telecommunications: .136 percent
  4. Construction: .083 percent
  5. Manufacturing: .091 percent
  6. Wholesale trade: .101 percent
  7. Retail trade: .111 percent
  8. Air transportation: .058 percent
  9. Truck transportation: .202 percent
  10. Rail transportation: .331 percent
  11. Other transportation: .129 percent
  12. Warehousing and storage: .128 percent
  13. Publishing, software and data processing: .253 percent
  14. Finance and insurance: .111 percent
  15. Real estate and rental and leasing: .25 percent
  16. Professional, scientific and technical services: .181 percent
  17. Management of companies and enterprises: .137 percent
  18. Administrative and support services: .154 percent
  19. Waste management and remediation services: .261 percent
  20. Educational services: .281 percent
  21. Health care and social assistance: .190 percent
  22. Arts, entertainment and recreation: .24 percent
  23. Accommodation: .2 percent
  24. Food services and drinking places: .194 percent
  25. Other services: .142 percent
  26. 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.

Jeremy Aguero again explains the convoluted tax plan put forward by the governor. (AP photo)

 

7 comments on “A tax by any other name would smell as sour”

  1. Roberta Anderson says:
    May 22, 2015 at 10:09 am

    Businesses do NOT PAY TAX–their customers do. So when we follow the money, as in reverse follow the tax collected, we get to the customers. AND THAT MEANS those who work for income pay for those who DO NOT WORK, as in those on assistance.

    It appears past time for NPRI and others to check out the UNCONSTITUTIONAL concepts when government picks and chooses which businesses to tax heavier than others–as in tax credits for Tesla while increasing the percentage or HIGHER TAX RATE on some businesses certainly appears UNCONSTITUIONAL re equal protection clause, commerce clause…

  2. Thomas Mitchell says:
    May 22, 2015 at 10:11 am

    There was another tax gift reported today: http://www.reviewjournal.com/business/economic-development/company-led-exec-seeking-las-vegas-nhl-franchise-wins-tax-incentives

  3. Rincon says:
    May 23, 2015 at 7:24 am

    The problem is spending, not taxation. In the long run, taxes must equal spending unless of course, the nation falls apart due to debt. The goal of taxation is to be fair and minimize the distortion it causes to the economy. If we are in debt, we will eventually have to let the taxman take more of our money. Sorry to burst anyone’s bubble.

    Roberta apparently wants the unemployed to pay their share of taxes. Seems to go against the laws of economics. She’s spot on though, with her opinion about some businesses paying higher taxes than others. That logic should also apply to individuals.

  4. Winston Smith says:
    May 23, 2015 at 10:49 pm

    Should everyone claim to be in mining?

  5. Athos says:
    May 27, 2015 at 12:44 am

    And just what, prey tell, will our elected and appointed Statists DO with all this tax money?

    Oh, silly me! Harry Greid and Sons (and family and friends and business interests and so on and so on and so on…..)

    Never mind.

  6. Newspaper column: Tax hike battle should prove to be a bruiser « 4TH ST8 says:
    August 21, 2015 at 8:03 am

    […] the largest tax hike in Nevada history and includes a gross receipts tax — under the rubric of a commerce tax — that is similar to the teachers union tax that 80 percent of Nevada voters rejected at the […]

  7. Newspaper column: Whether you get to vote on tax hike will be up to the courts « 4TH ST8 says:
    September 25, 2015 at 7:01 am

    […] filing included a verbatim copy of the 100-page Senate Bill 483, which created a commerce tax (similar to the voter-rejected margin tax), hiked the cigarette tax $1 a pack, adjusted the payroll […]

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