New and revised state taxes
June 4, 2003
The record $869 million tax plan under consideration as the Nevada Legislature convened a special session contains 15 new and increased taxes. It includes:
–Reduction in the amount retailers may keep from customers for collecting state levies on cigarettes, liquor and sales. Raises $48.3 million starting July 1.
–Increased and decreased Secretary of State filing fees. The changes are designed to induce more out-of-state or startup companies to file for incorporation in Nevada. Fees increase for resident agent filings and renewals. Raises $32.1 million starting July 1.
–A new 10 percent tax on live entertainment admission prices. Applying to both casino and non-casino events such as concerts or professional sports events, the tax would exclude movie tickets and may include the state’s legal brothels. Raises $129 million starting July 1 for casinos and Jan. 1 for other locations.
–Cigarette tax increased from 35 cents to $1 per pack. Raises $193.8 million starting July 1.
–Liquor tax increased 50 percent. A six-pack of beer is expected to cost about another 4 cents. Exact rates vary by alcohol amount. Raises $20.5 million starting July 1.
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–Gross gambling tax on all state casinos increased by 0.25 percent starting July 1 and another 0.25 percent in fiscal year 2005. The increase applies to each tax tier. Raises $71.3 million.
–Restricted slot tax rate increased by one-third starting July 1 and another 50 percent in fiscal year 2005. The higher tax on slot machines in grocery stores and gas stations raises $5.9 million starting July 1.
–Per-employee business license tax increased from $100 to $125 per year starting July 1. The increase will be rolled back to $85 in fiscal year 2005 and would be set for reduction to $50 in 2006. Raises $7.7 million starting July 1.
–Business license fees increased from a $35 one-time charge to $100 per year. Raises $48 million starting July 1.
–A new 5 percent bank franchise fee raises $42.6 million starting Jan. 1; will be retroactive to collect for full 2004 fiscal year.
–Home sales and other real estate transfers will be taxed statewide at $3.76 per $1,000 of assessed value, excluding the first $100,000 of value. Raises $72.7 million starting Jan. 1.
–Businesses with yearly gross revenue of over $3 million will pay a so-called Unified Business Tax. It’s a 0.25 percent tax on gross revenue, not more than 1 percent of gross margin, which is gross revenue minus cost of goods sold. On Jan. 1, 2005, businesses with yearly gross revenue of over $450,000 will also begin paying the tax. Raises $196.2 million starting Jan. 1.