Commentary – Oppose Gross Revenue Tax

 

                                                        Legislative Building

Business License Fee on Gross Revenue (SB252)

(At the end of this commentary is a summary of SB252 and a listing of fees per a business’ gross revenue)

I am not writing this commentary to express a pro or con opinion in regards to efforts by our Legislature and Governor to generate additional revenue; or, whether or not there is an actual need for additional revenue.

I am writing this in complete opposition to SB252 – the Gross Receipts tax, passed by the Nevada State Senate April 21 – as a means of raising additional revenue. It is now on the Assembly side of the legislative process.

Understanding that politics is politics and trying as hard as I can to not be too judgmental, I am very disheartened by the philosophical betrayal of so many of our elected Republican officials….(not to mention being totally embarrassed by the antics and juvenile behavior of some, but that is not my issue today.)

How am I (or any Republican) supposed to understand how the Republican majority in our State Senate (7 of our 11 Senators) can vote to pass a budget bill (SB252) that mirrors the gross receipts ballot initiative (Margins Tax) that voters of this state overwhelmingly defeated in the same election cycle during which many of these same legislators were running for their current offices.

While he has done many good things for this state and has obviously strong feelings for improving our public school system, how could the Governor even consider presenting to the legislature a revenue plan based on this failed ballot initiative. It is insulting, disrespectful and a slap in the face to those who put their trust in him.

In November 2014, the Gross Receipts, AKA “Margin Tax”, ballot initiative was defeated by the following “margin vote” of Nevada residents:

OPPOSED: 429,324 (78.74-percent) FOR: 115,891 (21.26-percent)

The Nevada AFL-CIO filed the initiative, but later passed a resolution to officially oppose the measure. In their official statement, they said it would “cost many of our members their jobs and raise the cost of living on Nevadans on a fixed income and on citizens that are still struggling to make ends meet after years of a terrible recession.”

There is a reason there are only five states with a gross receipts tax. The people of Nevada spoke loud and clear – they do not want one in Nevada!

If a Republican candidate truly believes this is the best means of raising additional revenue, then run on a platform based on a ‘gross receipts’ tax? Why did the seven Republican Senators who supported this bill not openly state they support imposing a massive new negative, and for many – deadly, financial impact on the businesses in our state; and, ultimately, support imposing an additional negative financial impact on every resident of this state?

To add to my disappointment with what I consider to be a betrayal of political integrity, I read this quote from a Democrat Senator following the vote, “We have been pushing this for the last 10 years….now finally they (R’s) gave us seven votes. This is our idea. This is our issue and we have wanted this for a long time.”

Well, I guess they are lucky the Republicans took over the majority of the Senate. The state Democrat Party should help us do this more often!!

SB252 is now in the hands of the Assembly, where it is expected to face a more challenging debate. The Assembly Taxation Committee has their own tax revenue proposal, centered on expanding the State Payroll Tax in lieu of the Gross Receipts Tax. Perhaps history will repeat itself (mirroring the 2003 Legislative battles, where, after two special sessions, Gov. Guinn’s proposed gross receipts tax was replaced with a payroll tax, aka modified business tax). I am hoping that we will see some additional and beneficial debate on this entire issue in the coming weeks.

If the possibility of this Gross Receipts Tax (SB252) becoming Nevada law alarms you, I strongly suggest you start letting your legislators know NOW. More information in regards to SB252 can be found on the following link:

http://www.carsoncityconservatives.com/bills-of-interest-taxes.html

Think about it.

Nancy Dallas, Publisher/Editor

Newsdesk (www.ndbynd.com)

Est. January 2003

SUMMARY OF SB252

Existing law imposes an annual fee of $200 for a state business license that must be paid to the Secretary of State. (NRS 76.100, 76.130) On July 1, 2015, this fee is scheduled to change to $100. (Chapter 429, Statutes of Nevada 2009, as last amended by chapter 518, Statutes of Nevada 2013, at p. 3426) Section 163 of this bill repeals the provisions of existing law governing the annual state business license fee, and section 19 of this bill instead requires a person who conducts a business in this State to pay a state business license fee that is based on the industry in which the business is primarily engaged and the Nevada gross revenue of the business.

To determine the amount of the quarterly state business license fee, a business included in this category must identify the fee on the following table that corresponds to the Nevada gross revenue of the business for the quarter for which the fee will be paid:

GROSS REVENUE      QUARTERLY FEE

1 $0 – 31,250            $100

2 $31,250 – 35,938      $100

3 $35,938 – 41,329      $100

4 $41,329 – 47,528     $100

5 $47,528 – 54,658      $100

6 $54,658 – 62,857      $100

7 $62,857 – 72,286     $100

8 $72,286 – 83,129      $110

9 $83,129 – 95,599     $126

10 $95,599 – 109,939    $145

11 $109,939 – 126,430   $167

12 $126,430 – 145,394   $192

13 $145,394 – 167,204    $220

14 $167,204 – 192,285    $254

15 $192,285 – 221,128    $292

16 $221,128 – 254,297    $335

17 $254,297 – 292,442   $386

18 $292,442 – 336,308    $443

19 $336,308 – 386,755   $510

20 $386,755 – 444,768    $586

21 $444,768 – 511,484    $674

22 $511,484 – 588,207   $776

23 $588,207 – 676,438    $892

24 $676,438 – 777,904   $1,026

25 $777,904 – 894,590    $1,180

26 $894,590 – 1,028,779    $1,357

27 $1,028,779 – 1,183,096    $1,560

28 $1,183,096- 1,360,560   $1,794

29 $1,360,560 – 1,564,645    $2,063

30 $1,564,645 – 1,799,341    $2,373

31 $1,799,341 – 2,069,243    $2,729

32 $2,069,243 – 2,379,630   $3,138

33 $2,379,630 – 2,736,574   $3,609

34 $2,736,574- 3,147,061    $4,150

35 $3,147,061 – 3,619,120    $4,772

36 $3,619,120 – 4,161,989    $5,488

37 $4,161,989 – 4,786,287   $6,311

38 $4,786,287- 5,504,230    $7,258

39 $5,504,230 – 6,329,865    $8,347

40 $6,329,865 – 7,279,345    $9,599

41 $7,279,345 – 8,371,247    $11,039

42 $8,371,247 – 9,626,935   $12,694

43 $9,626,935 – 11,070,975    $14,599

44 $11,070,975 – 12,731,622    $16,788

45 $12,731,622 – 14,641,365    $19,307

46 $14,641,365 – 16,837,571    $22,203

47 $16,837,571 – 19,363,206    $25,533

48 $19,363,206 – 22,267,688    $29,363

49 $22,267,688 – 25,607,841    $33,767

50 $25,607,841 – 29,449,017    $38,832

51 $29,449,017 – 33,866,370    $44,657

52 $33,866,370 – 38,946,326    $51,356

53 $38,946,326 – 44,788,275    $59,059

54 $44,788,275 – 51,506,517    $67,918

55 $51,506,517 – 59,232,495    $78,106

56 $59,232,495 – 68,117,369    $89,822

57 $68,117,369 – 78,334,975    $103,295

58 $78,334,975 – 90,085,221    $118,789

59 $90,085,221 – 103,598,005    $136,607

60 $103,598,005 – 119,137,706  $157,099

61 $119,137,706 – 137,008,362  $180,663

62 $137,008,362 – 157,559,616  $207,763

63 $157,559,616 – 181,193,559  $238,927

64 $181,193,559 – 208,372,593  $274,766

65 $208,372,593 – 239,628,482  $315,981

66 $239,628,482 – 275,572,755  $363,378

67 $275,572,755 – And Above      $417,885


3 comments on “Commentary – Oppose Gross Revenue Tax
  1. Chad says:

    From what I understand it doesn’t matter if your business is profitable or not. So if you had a million dollars in sales but aren’t making a profit, you still have to pay the tax

  2. michael says:

    as a small business making less that 80000.00 according to the wording of the bill and the fee schedule i will still be paying the state 200.00 per year. And If i were making more than a million a year..1400.00 dosent seem like it would be that big a burden.

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