Guinn supports plan to tax firms from out of state
Monday, May 14, 2001 | 10:26 a.m.
CARSON CITY -- Gov. Kenny Guinn says he supports a newly unveiled tax plan that would affect out-of-state corporations that have no employees in Nevada -- if it's constitutional.
"This is one giant step toward a long-term solution," Guinn said Sunday. "It fits in with my plan not to tax Nevadans this time."
The proposal, he said, has been "talked about since last summer."
Senate Majority Leader Bill Raggio, R-Reno, and Sen. Mark James, R-Las Vegas, who developed the bill, played a role in the discussions, Guinn said.
The legislation, to be introduced this week, calls for a $500 fee on every company that registers with the secretary of state. This includes corporations, limited liability companies, partnerships and others.
Those with employees based in Nevada would get a credit on the business activities tax, which is $100 a year per worker.
James estimated that 132,000 of the 172,000 business entities registered in the state would pay the annual fee, producing $65 million a year.
The governor said he needs to "see something in writing" that levying a higher fee on an out-of-state firm than on an in-state company is constitutional.
In this case, however, the in-state firm is merely getting a credit on its tax bill, Guinn noted. He expects a legal opinion from a private law firm early this week.
Raggio said out-of-state companies pay almost nothing now, and the tax would have no impact on the companies that operate here.
The extra money could be used for pay raises for teachers, Raggio said.
Guinn agreed.
"The biggest hole in my budget was we could not give teachers and other support personnel a raise," the governor said.
He set aside $57.5 million for a one-time bonus of 4 percent to 5 percent for teachers and other school personnel, but that does not raise their base pay. If the new fee is constitutional and it finances teacher pay raises, Guinn said, the $57.5 million might be freed up for other uses.
The new fee, Guinn said, does not solve the long-term financial problem facing the state. His administration produced a study last year showing the state will need an additional $1 billion over the next eight years to maintain the status quo.
He said that in two years there may have to be an influx of $450 million in new revenue. That could come from re-arranging the present tax structure or new taxes.
archive
- Most Read
- Discussed
- Most E-mailed
- Google Maps glitch renames Henderson
- Fight snapshot: Pacquiao is a hit with Jimmy Kimmel, and vice versa
- Vegas is inspiring, but not buying, ideas for tourism ads
- Rebels’ win raises a few what-ifs
- Wood: Not the renewable energy some had in mind
- Pinnacle CEO resigns after meeting confrontation
- Quagga mussels a toxic threat to Lake Mead
- As earnings fall, Riviera unsure if bankruptcy can be avoided
- Trial set for parents of boy, 4, who died in hot vehicle
- Not all doctors agree with AMA support of bill
Blogs
Robin Leach's Las Vegas Celebrity Watch
Who are the Final Four on Dancing With the Stars?
Politics: Ralston's Flash
Drugs bring Nevada governor, first lady back together (1 Comment)
Elsewhere
Macau's gambling industry faces nightmare of water rationing (1 Comment)
Top Chef: Las Vegas
Top Chef Odds Week 11: And then there were six
Politics: The Early Line
Rep. Berkley livens health care debate with story of her own (1 Comment)
Now and Then
Wranglers to face familiar foe and that's putting it mildly
Robin Leach's Las Vegas Celebrity Watch
Photo Gallery: Donny Osmond’s DWTS dream is in danger
Calendar »
- 10 Tue
- 11 Wed
- 12 Thu
- 13 Fri
- 14 Sat
-
Las Vegas Wranglers vs. Utah Grizzlies
Orleans Hotel-Casino
-
Leaving Springfield at Beauty Bar
Beauty Bar | 10 p.m. to 11:59 p.m.
-
Justin Sayne and Dignity at Moon
Moon Nightclub | 10:30 p.m. to 11:59 p.m.
-
Lily Tomlin at the Hollywood Theatre
Hollywood Theatre at MGM Grand
-
2nd Annual Go-Go Cup at Blush
Blush Boutique Nightclub | 10 p.m. to 11:59 p.m.
The Sun
Locally owned and independent for more than 50 years.
Technorati











