Las Vegas Sun

August 22, 2019

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Board OKs entering into agreement for tax benefits

CARSON CITY – The state Board of Examiners has approved entering into a multi-state agreement that will mean an extra $2 million annually.

State Insurance Commissioner Brett Barratt told the board Nevada must join to allow it to collect insurance premium taxes paid in other states on risks in Nevada.

For instance, he said Colorado may collect the premium tax to cover a company that is conducting a mining operation in Nevada.

“The math is good for us,” Barratt told the board when asked by Gov. Brian Sandoval if the state would lose money by entering into the multi-state agreement.

The 2011 Legislature approved a bill allowing Nevada to join the agreement. Nevada is connecting to a system set up by the National Association of Insurance commissioners. The law requires the Board of Examiners to approve the agreement.

Information presented to the board said, “If Nevada does not enter a multi-state agreement, Nevada will lose approximately $2 million in tax revenue each year.”

If Nevada didn’t join by Thursday, the state could lose the premium tax revenue that could have been collected in the interim. There was no estimate on the amount that was at risk.

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