Is prostitution “Live Entertainment” subject to tax or a “Service”?
By ED VOGEL LAS VEGAS REVIEW-JOURNAL CAPITAL BUREAU CARSON CITY — All Nevada businesses that offer live entertainment — including brothels, the Las Vegas Motor Speedway, the massive Electric Daisy Carnival and Burning Man — would have to pay an 8 percent tax under a bill to be introduced Wednesday. Assembly Speaker Marilyn Kirkpatrick, D-North Las Vegas, said Monday that her live entertainment tax bill is nearly completed and will cover “everybody,” ending exemptions for specific businesses and taxing some, such as brothels, that were previously ignored. Asked specifically whether the tax would include Burning Man, the speedway and brothels, she repeated, “Everybody.”
The 2011/12 annual Nevada Taxation report released in January 2013 shows the department doing worse, not better under the new management of Chris Nielsen
The LVRJ did an article on the Tax Department and audit performance last year
around this time. Now the audit performance for FY 2011/2012 in the
number of audits performed (950) net collections from audit billings,
($12,742,042), collections as a percent of gross tax,(0.38%) and audit
coverage, (1.17%) is even worse than the previous year, while gross
sales and use tax revenues have been on the rebound, $3,344,395,525 from
$3,142,104,568 in FY 2010-11. It looks like the start up of Net Proceeds of Minerals audits since the last legislative session has not had much of an impact on tax revenues / collections. Wonder if the mine tax auditors are experienced, qualified and know what to look for. We think not. Many of the tax auditors that the Tax Department hires only have minimal to no experience in accounting and tax auditing. The majority of these tax auditors are only equipped with high school diplomas. We experienced this on a first hand basis.
Taxation Department losing tens of millions of dollars a year, ex-employees say
CARSON CITY — The state is losing tens of millions of dollars a year in tax revenue because of an inefficient computer system that prevents department auditors from reviewing the tax records of companies in a timely manner, according to two former Nevada Taxation Department employees.
They place the blame primarily on a computer system that, while not antiquated, is slower and not user friendly, saying that a new system is needed.
The department’s annual report, released Jan. 15, shows 1.24 percent of businesses in the state were audited during the past fiscal year, almost half the total in the 2006-07 year, just before a new $40 million tax accounting system went online.
They also said that mismanagement by former Taxation Director Dino DiCianno has contributed to the department’s inability to perform more audits and that he deliberately stopped audits of the mining industry. DiCianno closed the agency’s Elko office in June 2010 as part of a cost-cutting plan by former Gov. Jim Gibbons, though the mining industry was booming and the auditor there could have recovered millions in unpaid mining taxes, they said.
DiCianno, who did not return a phone call seeking comments Tuesday, abruptly retired from state government in March, a day after telling legislators that mining companies had not been audited for two years because he lacked qualified auditors to check their records.
Taxation Department executives told legislators that the mining industry operated on a “self-reporting” tax system. After DiCianno’s departure, new Gov. Brian Sandoval required the department to undertake mining industry audits.
That work produced $1.2 million in additional revenue from audits in the fiscal year that ended June 30, although the employees said much more could have been secured except for a three-year statute of limitations on unpaid taxes.
Still the employees and their union representative said far more revenue could be secured if the number of audits returned to the total of past years.
“It is our members’ assertion the total number of audits is down because of the computer and software system,” said Vishnu Subramaniam, executive director of the American Federation of State, County and Municipal Employees Local 4041. “Individuals have to pay their fair share of taxes. We should expect the same from Nevada businesses.”
Although no one was critical of his performance, new Taxation Director William Chisel did not return three messages left by the Review-Journal on his office phone over the past week and a half. Sandoval, however, expressed support Tuesday for Chisel, adding it is the director’s plan to concentrate audits on companies where the returns can be greater.
“I will have a conversation with the director,” Sandoval said. “Mr. Chisel’s background is as an auditor. They are developing systems to go after the higher returning entities.” Subramaniam arranged for the two former Taxation Department employees to speak with a Review-Journal reporter. They both requested anonymity.
One is still employed in state government. He said he told legislators before the meeting in March that DiCianno was not having the department audit mining companies. He said he previously worked for a mining company and is proficient in auditing their records. Instead, he was assigned to audit businesses where the return for the state was far less.
This employee said no net proceeds of minerals audits were performed for 10 years.
“We did sales tax audits. We did business tax audits. We did everything but net proceeds of minerals,” he said. “I was stifled by Dino (DiCianno).”
The other source, who said he is familiar with the computer system, said, “It wasn’t right from the beginning. It has been completely dysfunctional.” The system will not even properly add up numbers, he said.
As an example, he said the system software would show a 990 answer for adding up a group of numbers with an actual sum of 1,000. Replacing it with a new system would cost $100 million, he added. Auditors for the Taxation Department do not need accounting degrees but can take a couple of night courses to qualify for the job, according to the former taxation auditor. He said pay is too low to attract highly qualified people. According to the state Personnel Division, tax auditors are paid $39,108 to $69,029 a year, depending on their experience. A person with a high school degree with previous auditing experience who has completed six credit hours of college accounting classes can be an auditor. “I would always collect or recover five times or more what I earn,” he said. “The jobs pay for themselves.”
The annual report shows salary expenditures by the Taxation Department increased by about $450,000 to slightly more than $20 million a year in the past fiscal year. Subramaniam said Sandoval needs to take the leadership to ensure the Taxation Department does more audits and businesses know they are being watched so they will pay their taxes, but with a 1.24 percent audit rate, businesses realize they can fudge their taxes with impunity. “The least we could be doing is to ensure that Nevada businesses are paying their fair share in taxes — that they are paying what they’re supposed to be paying,” Subramaniam said.
Contact Capital Bureau Chief Ed Vogel at firstname.lastname@example.org or 775-687-3901.
Nevada Department of Taxation Audits
|Pct. of businesses
|SOURCE: Nevada Department of Taxation
annual report, 2010-11
Our little Nevada ANTI-Corruption website has taken off and we’re celebrating our success with more updates and future demonstrations to promote the movement. We simply started the ANTI-Corruption movement as a grassroots effort with one cardboard sign and a cause to stand up to the corruption and relation in Nevada that has affected us personally. We networked with other people who were also victims of Nevada’s web-of-corruption. See our stories – Mike Weston (Mike’s LawlessAmerica story) – Tonja Brown – Ty Robben (Lawless America video being produced and coming soon to expose the demonic rampant wholesale corruption in Nevada). Then there was the a new issue and cover-up by State of Nevada officials explained by Reno, NV KRNV mynews4.com NEWS. For now, please see our 2012 ANTI-Corruption Summer 2012 video.
We made professional signs and a one-of-a-kind 150 long X 4 foot tall CRIME SCENE BANNER and protested in front of the Nevada State Capitol buildings in the spring and summer of 2012. Stay tuned as NV ANTI-Corruption adapts to our new version 2.0 round of protesting and exposing corruption in Nevada. We’re also covering other Nevada, U.S. and world issues on this website to attract a wider audience to broader issues covered by Infowars, Lawless America and others. To all united against tyranny and treason, we salute you.
Our youtube videos have also gone viral with over 50,000 hits and we’re in Lawless America the movie. Thank you for your support and please keep coming back to the NevadaStatePersonnelWATCH.wordpress.com website.
Are you aware some how Bill Windsor in all his splendor has the Lawless America the Movie Promos tied into the 2013 Sundance Film Festival?
Please see our friend Guy Felton’s youtube “Nevadagate” series on Nevada Corruption with links posted below in this posting. Guy has put together about 10 videos explaining his perspective on the rampant, wholesale corruption in Nevada. Topics include Judicial Corruption, Government Corruption to include AG Masto, Gov. Sandoval and much more. Guy goes wide and deep into the issues and calls out these corrupt and criminal politicians.
Guy Felton’s youtube “Nevadagate” series on Nevada Corruption
Part 2 of at least 3 intended parts
Please see the earlier post on NV ANTI-Corruption Dept. of Taxation Protesting here: https://nevadastatepersonnelwatch.wordpress.com/2012/07/25/july-2012-updates-continued-nevada-anti-corruption-targets-dept-of-taxation-for-fraud-and-retalation/
We’re working on a new video about the Nevada Department of Taxation tentatively titled – Nevada Department of Taxation: An orgy of CORRUPTION – Where did $250,000,000.00 million dollars go?
The content covers the department scandals under the Dino DiCianno administration up to the new leadership of Christopher G. Nielsen who was the Deputy Director under former Dino DiCianno regime. DiCianno “abruptly retired” in March 2011. Chris Nielsen was the General Counsel in the Office of Governor Jim Gibbons and as Senior Deputy Attorney General in the Office of the Attorney General for the state of Nevada.. Mr. Nielsen then reappointed Deputy Director to Taxation after Gibbons lost to Brian Sandoval.
Nevada’s top tax man abruptly retired Friday, a day after he revealed his agency hadn’t audited mining industry tax collections in two years and lacked trained staff to determine if the mining companies were paying proper net proceeds taxes.
In a statement, Gov. Brian Sandoval thanked Dino DiCianno for his years of service and wished him well in his retirement.
“He has been a loyal and dedicated public servant for three decades,” Sandoval said.
The governor said Chris Nielsen, taxation deputy director, will lead the agency until a permanent replacement is found.
Sandoval asked Nielsen to prepare a transition plan and immediate strategy to resume auditing mine operators to ensure the proper payment of the net proceeds of minerals tax. He also directed the state’s Internal Audit Division to assist the tax agency.
In a hearing Thursday before the Senate Revenue Committee, DiCianno told lawmakers that his department only had two-and-a-half people to conduct audits, and that they relied largely on the companies’ revenue projections and reports in calculating taxes.
It prompted a terse exchange with Senate Majority Leader Steven Horsford, D-North Las Vegas, who at one point said he may “need to start taking blood pressure medication.”
DiCianno also said the governor was unaware of the lack of audits, but that he had asked his staff to “dust off the internal audit manual” and get up to speed.
Nevada’s mining industry, with gold prices soaring to record highs, is a shining target in the gloom of the state’s budget battles as the state tries to claw its way out of the Great Recession while leading the nation in joblessness, foreclosures and bankruptcies.
Also revealed during Thursday’s hearing were the business deductions the mining industry is allowed to take before declaring their taxable net income. The deductions include an array of expenses including advertising costs, severance payments, employee or worker bonuses and sales tax.
According to the taxation department, deductions for Barrick Gold Corp. will amount to $1.7 billion this year. These deductions lower the mining company’s taxable income to $1 billion. Were taxation based on gross income instead of net, the tax department’s report shows Barrick would face taxes on almost $2 billion in 2011.
The more things change, the more they stay the same…
Anyway, we found some old pictures which reminded us of the Texting scandal of former disgraced Nevada Jim Gibbons. Gibbons’ dedication to his office was called into question again six months later. On April 2, 2009, while appearing before a legislative panel to promote his renewable energy bill, Gibbons pulled out his cellphone and began texting. News stories used this incident to revisit the 860 messages he sent to his alleged paramour, and a 37-second video of him introducing himself to the panel, with a 17-second break in order to send the text message and refocus on the hearing was posted on YouTube
Jim Gibbons pledged during his 1996 campaign for governor to not impose new taxes on businesses or individuals in Nevada. Gibbons broke his tax pledge on several occasions. The state’s Business Tax on employer’s payrolls which was initiated in 1992 was increased under Gibbon’s term and renamed the “Modified Business Tax”. Various mandatory fees and licenses administered by the Nevada Department of Taxation were also significantly increased under Gibbon’s term. Most particularly was the State of Nevada’s yearly business license fee. This license fee was doubled from $100.00 to $200.00. Due to the additional tax burden of the increased Modified Business Tax on Nevada’s small businesses during a downward business cycle, this tax was readjusted to a lesser rate by the 2011 Nevada legislative session during the leadership of Governor Brian Sandoval.
It was also discovered during the 2011 Nevada Legislative hearings that the Nevada Department of Taxation’s director, Dino DiCianno, never had the Tax Department under Gibbon’s leadership conduct Net Proceeds of Minerals (NPM) tax audits of mining operations within Nevada. Mr. DiCianno’s claim was that the Tax Department did not have qualified auditors capable of performing NPM audits. During Gibbon’s term market prices of precious minerals were at historical and significant high levels. The market selling price of Gold was in the $1,300 to $1,500+ per ounce range during Gibbon’s term. Gibbons was also a geologist and lawyer.
During Gibbons term Nevada lead North America in Gold and Silver production. Also Nevada was ranked No. 3 in the world for Gold production. After Mr. DiCianno’s testimony to the Nevada legislature that no NPM audits were conducted while Gibbon’s was governor he resigned the following day.
Governor Sandoval latter appointed William Chissel, a CPA with an auditing background as the replacement director of the Nevada Tax Department.
In the release of the Nevads Department of Taxation’s annual report in January 2012 which represented the fiscal year of July 1, 2010 through June 30, 2011, it was presented that the audit penetration rate (percentage of Nevada taxpayers audited of the total population of registered Nevada businesses) was the lowest amount in 6 years. The Tax Department during this 6 year period in the years 2006 and 2007, made a significant investment in new tax administration and audit software along with employee training to provide increased efficiency and audit performance. Accenture Consulting Services formerly a unit of Arthur Anderson & Co. was selected to design and implement the tax administration software. Revenue Solutions Inc. of Boston, Massachusetts was selected as a subcontractor by Accenture to design and implement the tax auditing software system.
Approximately $40,000,000.00 was invested in new tax administration and audit software. The results of this investment after implementation of this system as shown in Tax Department’s annual reports (2008, 2009, 2010) have been abysmal.
During the first full year of leadership under the new Director William Chissel the Tax Department was frought with turmoil and discontent.
Mr. Chissel exited the director’s position and was replaced by a former Deputy Attorney General assigned to the Department, Christopher G. Nielsen. Mr. Nielsen assumed the Executive Director’s duties on July 1, 2012. Mr. Nielsen was previously a Deputy Director of the Tax Department and was also an Acting Director after the termination of Dino DiCianno. Mr. Nielsen was in the position of Acting Director for several months prior to the appointment of William Chissel as Executive Director.
The Sandoval administration was immediately immersed in controversy when Sandoval retained Nevada Department of Taxation Director Dino DiCianno from the previous Jim Gibbons administration. 
It was discovered during the 2011 Nevada Legislative hearings that the Nevada Department of Taxation’s director, Dino DiCianno, never had the Tax Department under Gibbon’s leadership conduct Net Proceeds of Minerals (NPM) tax audits of mining operations within Nevada. Mr. DiCianno’s claim was that the Tax Department did not have qualified auditors capable of performing NPM audits. During Gibbon’s term market prices of precious minerals were at historical and significant high levels. The market selling price of Gold was in the $1,300 to $1,500+ per ounce range during Gibbon’s term. Gibbons was also a geologist and lawyer. The Nevada Department of Taxation closed the Elko, Nevada tax office in June 2010 in response to the requested Gibbons budget cuts. 
During Gibbons term Nevada lead North America in Gold and Silver production. Also Nevada was ranked No. 3 in the world for Gold production. After Mr. DiCianno’s testimony to the Nevada legislature that no NPM audits were conducted while Gibbon’s was governor he resigned the following day. See Bloomber Business Week and AP story “NV tax director abruptly retires after audit flap” and Las Vegas Review Journal.  
Governor Sandoval latter appointed William Chissel, a CPA with an auditing background as the replacement director of the Nevada Tax Department. 
On February 14, 2012 the Las Vegas Review Journal did a series of stories entitled “Taxation Department losing tens of millions of dollars a year, ex-employees say”. The story tells the various scandals that occurred in the Nevada Department of Taxation under Director Dino DiCianno.  
After one year into his term as Governor, Nevada received a D- and ranked 42nd among states for anti-corruption and government transparency efforts, according to a new report from State Integrity Investigation. 
Nevada received a D- and ranked 42nd among states for anti-corruption and government transparency efforts, according to a new report from State Integrity Investigation. Nevada rated poorly in a number of areas, including grades of F for state pension fund management, lobbying disclosure and internal auditing, grades of D for public access to information and legislative accountability and a C- for executive accountability. 
In response to the wholesale corruption validated by the D- grade, a large number of Nevada citizens formed a coalition called the Nevada ANTI-Corruption movement.
The Nevada ANTI-Corruption movement created a website www.NevadaStatePersonnelWATCH.wordpress.com and a youtube video series called CSI: Carson City to correspond to the massive 130 foot long by 4 foot tall Crime Scene banner.
Sandoval is rumored to be on the short list for Republican President hopeful Mitt Romney’s Vice President pick. 
The Nevada Department of Taxation protests generate positive results and will continue.
Current and former Tax employees confirm a culture-of-corruption still exists. Please email us at Nevadawatchdog@rocketmail.com to expose corruption, you can remain anonymous.
Nevada State Personnel Watch learns that a disgruntled person wiped “human defecation” on the desk/chair of Nevada Department of Taxation IT Director Vince Cherpeski. We can assure everyone it was not anyone of the people protesting or related to this web-site. Interesting news, we wonder who did it.
Employees are still filing complaints, retaliation is rampant and even FMLA backdating has occurred. IT issues still occur and audits are problematic. People are supporting us and our cause.
Look for the new AUDIT TAXATION for FRAUD sign and new signage showcasing the Rampant, Wholesale Corruption in Taxation.
See more Taxation protest pictures here: https://nevadastatepersonnelwatch.wordpress.com/2012/07/27/we-took-the-protest-to-reno-on-july-26-2012/
Protesting will continue in Carson City, Reno and new locations. We will have weekly demonstrations in Carson City at the State Capital. We are also doing full scale demonstrations at other locations including the Reno and Carson City AG and Tax offices. We will also do mini demonstrations and adapt to the areas and various protest zones. We may use billboards and mobile signs and other new techniques to get our message out and promote our websites.
Pictures of the July 30, 2012 protests in front of Carson City offices of Taxation and the State Capital.
Email us at: Nevadawatchdog@rocketmail.com
Main Nevada ANTI-Corruption website: https://nevadastatepersonnelwatch.wordpress.com
KOLO part 1 http://youtu.be/-lN4YWCZMrc?t=15m41s
KOLO part 2 http://youtu.be/-lN4YWCZMrc?t=12m34s
NBC / KRNV
AG and Carson City Court (Judge James E. Wilson) caught in backdating scandal
Las Vegas Review Journal
Las Vegas SUN
Protesters rallied with a 4 foot by 150 foot long “CRIME SCENE” banner!
Protesters each have their individual complaints against the Attorney General, NDOC, NHP, the Governor and Reno DA Dick Gammick.
Individual complaints include backdated court filings, withholding evidence, Brady violations, computer problems in NDOC adding false charges to inmates records and deleting “good behavior” credits. Other people complain about being harassed by NHP (pulled over 40+ times) after reporting icy road conditions.
Nevada was recently given a D- grade in transparency and is a top State in the union for CORRUPTION. Essentially a “State of Corruption”.
Protesters are planning to continue these demonstrations in the weeks and months ahead now that the weather is nice and more victimized citizens are learning about the movement.
Q- What the hell is this protest all about?
A- In 2012, Nevada received a D- grade making it one of the worst States in the union for CORRUPTION and Judicial Corruption. Local Nevada citizens in Carson City and Reno networked and joined forces using the Internet and social media and old fashion methods to create a collision. They were inspired to protest and created the Nevada ANTI-Corruption movement. One of the fellas involved in the protest is a professional sign maker who fabricated a massive 140 foot long, 4 foot tall one-of-a-kind CRIME SCENE banner. The banner is unique and has commanded the attention of anyone who sees it as well as local, national and world-wide media attention. The other protest signs are also large and unique targeting specific issues and general anti-corruption messages.
The Nevada ANTI-Corruption movement is working and we are having success for individual causes and bringing public attention to the Rampant Wholesale Corruption here in Nevada. We will report news and information on out main website https://nevadastatepersonnelwatch.wordpress.com
We encourage people to watch out youtube videos at http://www.youtube.com/user/stumpjumpnty/videos
Once you become familiar with what we are doing, please contact us at Nevadawatchdog@rocketmail.com
We are starting to regularly hold demonstrations in Carson City Nevada at the State Capital in front of the Attorney Generals office which is directly across from the Governor’s office on the main street and Musser St.
We will also hold demonstrations at other locations such as the Reno AG office, area courts (Reno, Carson, other) and pinpoint protests at Nevada Department of Taxation offices in Nevada and other State agencies as required. We may expand protests to Las Vegas and bring the CRIME SCENE banner to rural areas of Nevada too. All this brings attention to the judicial corruption happening in Nevada and the rest of the country.
Nevada ANTI-Corruption & Lawless America join forces to gain Nation Nevada ANTI-Corruption & Lawless America join forces to gain Nation Attention to Rampant, Wholesale Judicial Corruption in America.
Kids for Ca$h, Penn State and Nevada’s D- grade are all recent scandals we’ve heard about in the news. There are thousands and tens of thousands we have not heard of.
Corruption is running rampant in America and it is getting worse. Please check out a recent update from Bill Windsor from Lawless America on the Internet talkshow called ‘Talkshoe’ at www.Talkshoe.com
Here is the direct link to the profound information: http://recordings.talkshoe.com/TC-115884/TS-646174.mp3
Listen to time-stamp 57:15 to learn about how to sue the State courts if Federal court using something called section 1983. This “section 1983” is Constitution law and is used for civil rights cases like excessive police force, discrimination, retaliation and other State abuses of power.
I, NevadaWatchDOG, am not an attorney. This website expresses my OPINIONS. The comments of visitors or guest authors to the website are their opinions and do not therefore reflect my opinions. Anyone mentioned by name in any article is welcome to file a response. This website does not provide legal advice. I do not give legal advice. I do not practice law. This website is to expose government corruption, law enforcement corruption, political corruption, and judicial corruption. Whatever this website says about the law is presented in the context of how I or others perceive the applicability of the law to a set of circumstances if I (or some other author) was in the circumstances under the conditions discussed. Despite my concerns about lawyers in general, I suggest that anyone with legal questions consult an attorney for an answer, particularly after reading anything on this website. The law is a gray area at best.
These Know Your Rights materials are informational resources only and are not legal advice. For legal advice, to ask about your rights in specific situations, or if you believe that your rights have been violated and wish to pursue a private action or other possible avenues, please contact a private attorney. [ACLU NV]
THE FIRST AMENDMENT
We took the protest to Reno on July 26, 2012 for new photo shoots and scouted out new areas to protest. We setup early at the Nevada Department of Taxation and got the employees coming into work and the morning rush hour traffic on Kietzke lane. The protest area was small and we’ll consider more protests in this area and adapt to the limited area. Of course, we can setup across the street for the next protest at this location.
We then took the protest the the Reno offices of the Nevada Attorney General on Kietzke Lane at the round-a-bout near Hwy. 395. This was a very busy area with tens of thousands of cars zooming by. The signs worked well and we commanded attention from traffic in both directions and traffic heading to Hwy. 395 south.
We shot a ton of footage and we’ll be using these images for the new videos. New videos are being produced to detail the corruption in the Nevada Department of Taxation. This will cover the IT system issues, the personnel issues and the constructed lax audits on mining and other industries.
We are also producing short videos that may be released very soon. The themes are “Halftime in Nevada” based on the Chrysler 2012 Superbowl ad ‘halftime in America’ starring Clint Eastwood. We will try and adapt the story from Detroit, Michigan to Carson City, NV. The theme is good and appropriate as ANTI-Corruption founders Mike Weston and Ty Robben await legal answers from the courts on their cases described on http;//NevadaStatePersonnelWatch.wordpress.com
In the meantime, please see our latest video about Rampant, Wholesale Judicial Corruption here http://www.youtube.com/watch?v=-lN4YWCZMrc
The Nevada ANTI-Corruption movement continues. We plan a “protest blitzkrieg’ with new protests in Reno and other areas to focus on the Nevada Department of Taxation and the corruption within.
KRNV investigates Nevada Attorney General BACKDATING SCANDAL in Carson City Nevada. NAG Catherine Cortez Masto’s office backdated court filings twice in the Carson City District Court. The court clerks and Judge James E. Wilson refuse to go on camera and are all implicated in the illegal backfilings.
CSI: Carson City, An ANTI-Corruption open letter/video to NV Governor Brian Sandoval about the fraud and corruption destroying Nevada by Guy Felton. Recorded May 25, 2012.