Category Archives: Tax

Margin Tax Discussion – Nevada Newsmakers

On November 1, I was happy to be Sam Shad’s guest on Nevada Newsmakers to discuss the margin tax ballot petition.  We ended up having a lively discussion.  I represented a coalition that is seeking to invalidate the petition and the other guy represented the unions seeking a tax increase.  As an added bonus, you can watch the other guy call me a “fancy talker.” For context, the margin tax petition has been invalidated by a court twice now this year. You can watch it on the newsmakers website here: www.nevadanewsmakers.com.

A Tax By Any Other Name . . .

Over the weekend, the Reno Gazette-Journal ran an editorial suggesting that it’s time for Nevadans to consider a corporate “margins” tax.  The Las Vegas Sun wrote that a coalition has formed to push for a margins tax via an initiative petition.  Unsuccessful legislation to enact a margin tax was considered by the Nevada Legislature in the first half of 2011, and was modeled on a similar tax enacted in Texas in 2006. The Texas Constitution is similar to the Nevada Constitution in that both prohibit an income tax on individuals.  Members of a limited partnership in Texas recently … Continue Reading »

It’s Not Only State Revenues That Have Declined . . .

As the Governor and Nevada Legislature prepare to enact a budget for the next two years, speculation has been rampant that the state will look to local governments to make up a large part of the deficit.  Local government revenues have historically (at least in the past few decades) been relatively stable, as they are premised in large part on property taxes. However, the ongoing recession has significantly impacted both commercial and residential property values, and although assessments traditionally lag behind market shifts, the decline in values is starting to … Continue Reading »

Now What?

As all remain hopeful that the recent special session will keep the state budget in the black through the biennium, the looming problem of a budget deficit that could reach $3 billion (around 50% of the general fund ) in the next biennium inches closer.  Anjeanette Damon wrote a comprehensive overview of the situation here. The stimulus crutch will be gone, and most of the temporary tax increases from the 2009 session are set to expire.  The fiscal problem facing the state is severe and the solutions that come out of … Continue Reading »

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 »

Tax Amnesty

The recent legislative special session resulted in some good news for Nevada taxpayers in the form of a tax amnesty program to be implemented this summer.  Details are below: Nevada Taxpayers Receive Relief from Penalties and Interest on Outstanding Taxes On March 12, 2010, the Governor of Nevada signed Assembly Bill 6. One section of the bill enacts a new tax amnesty program in Nevada, allowing for the waiver of all penalties and interest on certain outstanding Nevada tax liabilities in exchange for full payment of the tax due. Applications … Continue Reading »

The Fiscal Crystal Ball

Yesterday I attended the annual Nevada Taxpayers Association luncheon in Las Vegas.  The keynote speaker was renowned economic forecaster Dr. John Silva of Wells Fargo.  Other panelists included Jeremy Aguerro from Applied Analysis, Bill Anderson from the Nevada Department of Employment, Training and Rehabilitation, Kevin McCarthy of the Arizona Taxpayers Association, David Kline of the California Taxpayers Association and Dale Craymer of the Texas Taxpayers and Research Association. Dr. Silva pained a fairly optimistic economic picture for Nevada, opining that while Nevada remains in a recession and will likely be … Continue Reading »

The State of the State

Today the Governor announced he will call a special session beginning February 23 to address a projected budget shortfall of almost $900 million.  The Governor has yet to issue his official proclamation calling the session, where the agenda for the session will be spelled out. In his speech, the Governor pointed out the continuing economic woes plaguing Nevada and blamed the Legislature for raising taxes and failing to enact stiffer budget cuts in 2009.  The Governor took potshots at Senator Harry Reid as well, noting that Nevada came in 50th … Continue Reading »

The Coal Case and the Impact on the Budget

In a post on December 30, 2009 I noted that the budget deficit could increase due to some pending tax refund cases, one of which deals with the taxability of coal burned in power plants in Nevada.  This particular case began in 2002 when Southern California Edison (Edison) requested a refund for use taxes paid on coal burned in its Southern Nevada power plant.  Edison argued that because coal could be subject to Nevada’s net proceeds of minerals tax it would be unconstitutional to also subject it to Nevada’s use tax.  … Continue Reading »

Baptism by Fire

The Associated Press ran a story yesterday called “Rookies will be  big factor in 2011 Legislature.”  The article notes that newcomers will hold at least 17 of the 42 spots in the Assembly, and at least 8 of the 21 spots in the Senate (with some allowances for legislators who avoid term limits and remain in the Legislature by swapping houses).  The story notes that the 2011 Legislature will be confronted with at least two enormous challenges:  the growing gap between government expenses and revenues; and reapportionment of Nevada’s legislative districts. The challenges in tackling those … Continue Reading »