Las Vegas Sun

July 21, 2018

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Governor says repealing commerce tax would devastate education

CARSON CITY — Gov. Brian Sandoval said today that Attorney General Adam Laxalt’s proposal to repeal the commerce tax would be devastating to education. He said it would hurt students, teachers and parents.

Laxalt is scheduled to announce Nov. 1 that he will run for governor.

The commerce tax on businesses brings in $391 million every two years, and it all goes to education, Sandoval said.

State Controller Ron Knecht has started a petition initiative to repeal the tax.

Sandoval said if the $391 million was eliminated without reducing public school funding, then there would have to be cuts in pay for state workers and the budgets of universities, health programs, prisons and other agencies.

The commerce tax, passed by a Republican-controlled Legislature with a small minority of dissenters, is levied on businesses that have more than $4 million in gross revenue annually.

Sandoval said Laxalt has never discussed repealing the commerce tax with him.