State treasurer wants to replace some taxes with corporate income tax

CARSON CITY — State Treasurer Dan Schwartz has submitted a bill draft for consideration by the 2017 Legislature to eliminate the modified business and commerce taxes and replace them with a corporate income tax.

Schwartz called the two current taxes “anti-growth taxes.”

The commerce tax was one of the most controversial proposals in the 2015 Legislature. It was sought by Gov. Brian Sandoval to help pay for increased funding for public education and won approval from a majority of lawmakers. The first commerce tax filings were due earlier this month.

Two other measures sought by Schwartz would deal with payday loan reforms.

Schwartz’s bill requests were announced by his office on Tuesday.

“Our first bill benefits all Nevada residents,” Schwartz said in a statement. “It will establish a statewide database so that payday lenders can monitor lending requests by short term borrowers. It also mandates a 45 day cooling-off period to shield Nevadans from interest rates and exorbitant fees that can accrue on these loans.

“Our second bill provides access to reasonable lending terms for Nevada’s active military, veterans, and educators,” he said. “As frequent victims of predatory loan practices, they deserve better than they get when their cash needs fall short. These individuals have served our country and our youth. Our bill seeks to use the previously established public benefit corporation model to assist when unforeseen accidents and needs arise.”

The bill seeking to replace the modified business and commerce taxes would also provide some oversight of those who take advantage of Nevada’s low corporate tax rates.

Schwartz said the bill proposes to create an advisory committee to review the practices of companies who use Nevada as a tax-shelter without offsetting investment in the state’s economy.

A number of groups are seeking payday loan reforms.

Nevada is among at least six other states with no interest rate cap – Utah, Idaho, Wisconsin, Texas, South Dakota and Delaware – making it among the most expensive states to take out a payday loan.

Schwartz said at a public meeting on the issue earlier this month that he wants to curtail abuses in the payday loan industry.

Contact Sean Whaley at swhaley@reviewjournal.com or 775-461-3820. Find him on Twitter: @seanw801