Nevada good for business

The creation of the gross receipts-based "commerce tax" by the Nevada Legislature and Gov. Brian Sandoval ended up costing the state almost nothing in terms of the competitiveness of its business climate.

This week, the Tax Foundation released its 12th annual ranking of states' business tax structures. Coincidentally, the Tax Foundation blasted Gov. Sandoval's original incarnation of the tax in a report commissioned by the Las Vegas Metro Chamber of Commerce, which infuriated the governor and his allies in the Legislature — and caused the chamber to distance itself from the foundation and the report.

But the final version of the commerce tax, which exempts small businesses, and other changes to state taxes resulted in Nevada dropping just two spots in the rankings, from third to fifth.

The compromise that reduced the reach of the commerce tax was a wise one. As a result, Nevada still has one of the most favorable business tax climates in America.