Panel approves business license regulation
CARSON CITY -- Limited liability companies will be required to pay a $200-a-year state business license tax under a regulation approved Thursday.
Republican legislators said the tax will hurt small businesses and could not be imposed by the subcommittee.
On a party line 4-2 vote, the Nevada legislative Subcommittee on Regulations approved a rule sought by the secretary of state that prevents such companies from using a law exempting home-based businesses earning less than $27,000 a year from the tax.
The vote came after Legislative Counsel Brenda Erdoes said limited liability companies are not "persons" as the law requires to be eligible for the exemption. The fee is collected by the secretary of state's office under a law passed in 2009.
Secretary of State Ross Miller has said the state is losing more than $10 million a year because as many as 60,000 bowling alleys, nail salons and limited liability companies are not paying the tax .
At the hearing, audience members said the regulation will force women selling Mary Kay cosmetics to pay the tax. But Sen. Mo Denis, D-Las Vegas, asked Miller that question, and Miller said they would not be subject to the tax if they earn less than $27,000 a year.
