Category Archives: Nevada Agencies

The Internet Tax

The Governor’s callfor the recent special session asked that the Legislature consider extending the use tax to online vendors.  The Legislature did not take action on this issue. Currently, online vendors without a nexus in Nevada are not required to remit sales or use taxes to Nevada and consequently the purchasers of goods from those vendors do not pay the tax either. The use tax in Nevada is commonly misunderstood in its application.  The use tax is a compliment to the sales tax.  The sales tax is due when tangible goods … Continue Reading »

The Battle Over the IFC

Today the Governor vetoed Senate Bill 3 from the special session.  SB 3 addressed employee furloughs and related subjects.  One section of the bill required exemptions to the furlough program to be approved by the Interim Finance Committee (IFC).  The veto message specifically cited to that section as part of the rationale for the veto, noting that the Legislature was giving “itself authority to administer and execute the law in violation of the separation of powers provision in the Nevada Constitution.” This is not the first constitutional clash between the … Continue Reading »

The Latest Round of Fiscal Projections

The Economic Forum is set to meet in two days to provide updated state revenue forecasts for the current biennium.  In an earlier post, I suggested that the shortfall for the current biennium could approach $400 million.  Since then, state revenues have continued to decline and at this point, it would not be surprising if the forecasted shortfall ends up being well in excess of $400 million, possibly even approaching $500 million.  With a fiscal hole of that magnitude, and the apparent lack of cooperation between the executive and legislative … Continue Reading »

Let the Legal Standoff Begin

Today, Assembly Majority Leader John Oceguera penned a letter to the Governor. The letter is in response to a recent directive from the Governor to executive branch agencies prohibiting them from responding to legislative requests for information without the approval of the Governor’s Office.  Although the letter is civil in its tone, the inclusion of numerous citations to Nevada law make it clear that the Legislative branch is willing to engage in a legal fight if the directive is pursued. If the Governor’s directive stands, legislative subpoenas will likely start being issued, … Continue Reading »

State Budget Situation Worsens

Today Governor Gibbons asked state agencies to plan for budget reductions of up to 10%.  The request comes less than a month after agency heads were asked to submit plans for reductions of up to 3%.  The request can only mean that the administration feels that state revenues will not improve anytime soon and that drastic measures will need to be taken in order to maintain a positive cash flow. Budget reductions of this magnitude, on the heels of significant spending reductions for the biennium that were approved by the Legislature in early … Continue Reading »