weather icon Clear

Repeal of commerce tax could cost Nevada $160M, analysis finds

Updated August 17, 2017 - 9:40 pm

CARSON CITY — A repeal of Nevada’s commerce tax would cost the state government about $161.3 million in fiscal 2019, a Legislative Counsel Bureau analysis found.

The estimated financial impact of a repeal would be about $97 million annually in fiscal 2020 and beyond, according to figures filed this week with the Nevada secretary of state’s office.

Nevada Controller Ron Knecht and former Las Vegas City Councilman Bob Beers, both Republicans, this month filed a petition to repeal the commerce tax passed by the Nevada Legislature in 2015. The tax applies to businesses with gross revenues that exceed $4 million annually.

If petitioners get 112,544 signatures from Nevadans who voted in 2016, a referendum asking to repeal the tax will be on the ballot in the 2018 general election. The deadline to get the signatures is June 19, 2018.

Republican Gov. Brian Sandoval spearheaded passage of the commerce tax as part of a push to better fund and reform public education in Nevada.

The analysis also notes taxpayers may claim their commerce tax credits differently because of the potential elimination of the referendum, impacting the state’s loss of revenue, according to the analysis.

Fiscal 2019 starts July 1, 2018. The figures also factor in about $498,000 annually that the Nevada Department of Taxation would save on staffing and administrative costs tied to the commerce tax.

Knecht, who formed the political action committee Repeal the Commerce Tax Inc., led a similar effort in 2016. It was not allowed on the ballot because the Nevada Supreme Court cited concerns about the petition’s description of effects. Knecht has said this referendum will address those concerns.

Contact Ben Botkin at bbotkin@reviewjournal.com or 775-461-0661. Follow @BenBotkin1 on Twitter.

Don't miss the big stories. Like us on Facebook.
Politics Videos
Bernie Sanders Unveils Affordable Housing Plan - Video
Bernie Sanders sits down with the Las Vegas Review-Journal to talk about his new affordable housing plan he unveiled at Plumbers & Pipefitters.
Jim Marchant talks gun control and Dreamers - Video
Republican Candidate for District 4 Jim Marchant talks about gun control and immigration policies. (Las Vegas Review-Journal)
Hurricanes, Gender, and Science in the Press
Imagine if the mainstream media’s current hurricane-sized obsession with scientific accuracy applied to gender.
Cory Booker on college tuition and minimum wage
Cory Booker talks on the RJ Politics podcast about college debt, informing workers about their rights and livable wages.
Nevada Politics Today: Teacher raises - VIDEO
Jason Goudie, the chief financial officer for the Clark County School District, talks about teacher pay and raises. (Las Vegas Review-Journal)
Media's Double Standard On Incitement And Trump - Video
Over the weekend, an Elizabeth Warren-supporting socialist who opposed gun violence used a rifle to commit a mass murder in Dayton, Ohio. The media has downplayed that aspect of the tragedy.
Project Our Care Tour Kicks Off In Las Vegas
U.S. Rep. Dina Titus joined health care advocates and local residents as part of Protect Our Care’s nationwide bus tour kick off in Las Vegas on Monday, August 5, 2019. (Mat Luschek / Review-Journal)
Bernie Sanders talks about guns, response to El Paso shooting
Sen. Bernie Sanders spoke about his response and continued policy ideas about guns and gun control to the Review-Journal after a panel of other topics. (Rachel Aston/Las Vegas Review-Journal)
Pete Buttigieg On Gun Control And Climate Change - Video
Pete Buttigieg talks about his campaign for the 2020 election and how Nevada is a vision of what the future can be.
Beto O'Rourke speaks in Las Vegas
Presidential candidate Beto O'Rourke spoke to supporters at the East Las Vegas Community Center in Las Vegas, Thursday, Aug. 2, 2019. (Las Vegas Review-Journal)
Former Nevada Senate leader Kelvin Atkinson sentenced to prison
Former Nevada Senate Majority Leader Kelvin Atkinson, who pleaded guilty to misusing campaign funds, was sentenced to 27 months in prison on Thursday, July 18, 2019. (Mat Luschek/Las Vegas Review-Journal)
Trumps Strength is also a Weakness - Video
One of Donald Trump’s greatest strengths — his ability to shape national narratives — is also a great weakness.
Tax the Rich Bus Tour makes a stop in Las Vegas - Video
The Tax the Rich Bus has stopped in Las Vegas as part of its summer tour. (Las Vegas Review-Journal)
Assemblywoman Daniele Monroe-Moreno hosts BBQ - Video
Assembly Woman Daniele Monroe-Moreno hosts BBQ to bring the community together to hear about the candidates up for election and for people to gather and have fun.
Democrat Virtual Caucus - Video
Elizabeth Warren visits Las Vegas
Senator Elizabeth Warren made a campaign stop at the East Las Vegas Community Center on Tuesday July 2, 2019. (Mat Luschek / Review-Journal)
Aaron Ford Speaks About Bill AB431
AB431 is a bill sponsored by Nevada Assembly Speaker Jason Frierson to restore the right to vote for formerly incarcerated individuals. Attorney General Aaron Ford spoke at the AM&E Church in North Las Vegas about the bill, on Monday, July 1, 2019. (Mat Luschek/Las Vegas Review-Journal)