Greedy lawmakers create tax via Uber

By William Kidd, Las Vegas

Friday, June 5, 2015 | 2 a.m.

The trusty Nevada Legislature approved a bill allowing Uber to operate in the state. The bill passed mainly because the consumer, including locals and visitors and not business or corporations, would have to pay a 3 percent excise tax on the fare to use a taxi, a limo or Uber. It is just an out-and-out additional tax on residents of Nevada. The deal was sweetened with a funding plan for a UNLV medical school.

The passed bill does not mention the medical school, but does require that the first $5,000,000 go to the highway fund and the balance to the general fund. The Nevada Transportation Authority, which only operates in Clark County, reports total revenue for Clark County taxi companies in 2014 was $408,400,000. A 3 percent excise tax would generate $12,250,000, less $5,000,000 means $7,250,000 for the general fund and/or medical school.

This assumes Uber would only eat into the existing taxi companies’ revenue and not create more demand for transportation services. The data for the rest of the state is unknown. The trusty Legislature estimated $70,000,000 over the next two years. The greedy Legislature saw an easy way to fund the budget without a new business tax. Let the consumer pay and promise them a medical school.