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.
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…
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
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.
Should everyone claim to be in mining?
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…..)
[…] 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 […]
[…] 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 […]