Nevada Democrats want new business taxes to fund education, social services

CARSON CITY — Democrats on Wednesday introduced proposals to raise about $571 million for education and social services by imposing new taxes on business revenue and consumer services, a category that could include everything from car repair to haircuts.

The proposed business tax contained in an amendment to Senate Bill 491, called a margin tax, would impose a 0.8 percent tax rate on revenue over $1 million, with options available for businesses to take deductions for labor, goods purchased or a percentage of revenue. A proposed service, or transaction, tax rate is 1 percent and contained in Assembly Bill 569.

The proposed taxes are part of an effort by Democrats to break a legislative stalemate over the 2011-13 state budget. Republican Gov. Brian Sandoval, who promised during his campaign to oppose tax and fee increases, presented a general fund budget of about $5.8 billion and later increased his proposed spending to about $6.1 billion.

Democrats, seeking to avoid cuts to education and social services proposed in the Sandoval budget, want to spend about $7 billion in general fund money in the next two years. In addition to new taxes to raise $571 million, they want to extend the expiration date on about $626 million in taxes that would otherwise disappear on July 1.

Sandoval and Republican lawmakers have so far remained unified against new or increased taxes, denying Democrats the two-thirds majority bloc they need to impose their plans.

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.