Las Vegas Sun

March 29, 2024

Commerce tax plan sparks complaints and questions

CARSON CITY — Gov. Brian Sandoval’s new commerce tax is going to be “an administrative nightmare” for the state Department of Taxation to administer, a tax expert said today.

Taxpayers, lobbyists and attorneys complained of a multitude of concerns about the regulations to implement the tax on companies that earn more than $4 million a year in gross income.

Deonne Contine, director of the tax department, said the regulations are aimed to be as easy as possible while complying with the 2015 law. Hundreds of thousands of companies and individuals will be required to file tax returns, even if they did not earn $4 million or more.

Robert Barengo, chairman of the Nevada Tax Commission, said, “Even those who clean a rug” will be required to file a tax document.

Contine held a two-hour workshop on the new tax, which won’t be levied until August, 2016. Another workshop is set for Sept. 26. She predicted that the tax commission won’t approve final regulations until November or December.

Carole Vilardo, head of the Nevada Taxpayers Association, said some areas of the law were convoluted, predicting that the tax department would have a difficult time in administering the new law.

Robert Armstrong, an attorney from Reno, said the law and regulations “are a large expansion of those who have to report.” Paul Enos, representing the trucking association, said a person who attends a trade show in the state may have to report even if there are no sales.

In response to questions about companies passing the tax on to customers, Contine said it was not a sales tax that that would automatically be attached to a sale. But she said that certain companies could pass on the tax to the consumer if it was a “recovery tax.”

Barengo said these workshops are to help the public understand the tax. “We need a lot of discussion,” he said.

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