Assembly passes Sandoval’s $1.1 billion tax scam

money blackholeCARSON CITY  (AP) — Nevada Gov. Brian Sandoval’s $1.1 billion tax plan cleared a massive hurdle Sunday night after passing the Assembly, putting it one step away from a governor who’s expected to sign into law the state’s largest one-time tax increase and fund ambitious initiatives to improve K-12 education.

Assembly members voted 30-10 to approve an amended version of SB483 with less than two days left in the legislative session. The bill combines expanded business taxes with a cigarette tax hike and permanently extended several expiring “sunset” taxes.

“It’s time that we put the status quo in the rearview mirror,” said Republican Assembly Majority Leader Paul Anderson, one of the architects of the plan.brian-sandoval-bong

Senators are expected to vote Monday morning to give the bill final approval, which would send the measure to the governor’s desk.

The vote is a major victory for the Republican governor, who needed to convince two-thirds of the Republican-dominated Assembly to back a plan that funds a significant chunk of his proposed $7.4 billion, two-year budget.

“I am incredibly proud of the men and women of the Assembly who today affirmed that Nevada is ready to lead,” Sandoval said in a statement. “This vote moves us one step closer to cementing the legacy of improving public education by both raising accountability as well as increasing investment in order to suit the needs of generations to come.”

The taxes are part of Sandoval’s effort to put millions of dollars into education initiatives targeting English language learners, children in poverty and other at-risk groups. Lawmakers have already approved a large percentage of the state’s budget, including a massive expansion of K-12 education programs that Sandoval touts as necessary to improving the state’s consistently low education rankings.

The plan faced resistance from a vocal bloc of anti-tax conservatives, concerned that voters overwhelmingly rejected a ballot question seeking to create a similar business tax.

“Eighty percent of the voters said no,” said Republican Assemblyman Ira Hansen, “and we’re going to sit here and we’re going to say we’re smarter than you, we’re going to reject what you did in that election cycle, we’re going to ramrod down your throats this new, so-called commerce tax? This is disgraceful.”

But heavy-hitting business groups lined up behind the plan, and several Republicans who were on the fence announced their support shortly before the vote.

“I was uninformed. I made a mistake. I sat and spouted the party line: ‘No new taxes, no matter what,'” Assemblyman Erv Nelson said in a floor speech, explaining his change of heart and ultimate support. “I’ve thought about this, I’ve fasted. I’ve prayed, and I think this is the right thing to do.”

Elements of the plan include:

—A hike in the business license fee. The fee for corporations would rise from the existing $200 a year to $500, while the fee for the rest of the business entities would remain at $200.

—A hike in the payroll tax. Sandoval’s plan raises the state’s existing modified business tax from 1.17 percent to 1.475 percent of wages beyond the first $200,000 a company pays out each year, and 2 percent of those wages for the mining industry and financial institutions. Companies would still get to deduct health care premiums for employees from the calculation.

—A “Commerce Tax” on gross revenue. Industry-specific tax rates will apply to businesses with more than $4 million in Nevada revenue each year. Businesses can count 50 percent of their commerce tax bill as a credit against their modified business tax bill — a provision that’s intended as a perk to those who employ people. The commerce tax aims to capture more money from capital-intensive businesses such as mines and those that do business in Nevada but aren’t based here.

— A flexible payroll tax rate. The plan allows the state to lower the modified business tax rate if revenues from the new commerce tax and MBT rate bring in more revenue than projected.

— An extension of “sunset taxes.” About $600 million of the plan comes from making a set of expiring payroll and sales taxes permanent. It also raises a tax on cigarette packs by $1.

Stop the “SandovalTax”

Governor Brian Sandoval wants to tax you more.

tax

Governor Sandoval wants a new fine on businesses that do good–the better a business does, the more they have to pay for a business license.  The businesses pass this cost onto the consumers, YOU.  And when you pay for that product or service, not only does it cost you more, the higher cost results in more sales tax paid.  It’s a lose-lose situation for tax papers and win-win for politicians who can’t budget.

Call or email your Legislature, Mrs Teresa Benitez-Thompson (D)  775-247-7665  –   electteresa@gmail.com   and tell her “NO on the SandovalTax.”  She has a track record of blowing off voters’ phone calls.  If she doesn’t return your call or email, don’t vote for her again.  She’s too busy with her four babies, and a fifth baby on the way, too busy to bother with voters like you.

Sandoval seeks new “TAX” on business license fee to raise $430 million

brian-sandoval-bongBy SEAN WHALEY

CARSON CITY — Gov. Brian Sandoval is expected to seek a new business license fee based on gross receipts to raise about $430 million over two years to pay for his proposals to improve public education in Nevada, the Review-Journal has learned.

The fee would be levied in 30 different business categories and would be in addition to the existing Modified Business Tax, or payroll tax. But one change said to be part of the tax plan would be to charge the mining industry the 2 percent payroll tax rate now charged to banks rather than the 1.17 percent rate assessed for most businesses.

In addition, Sandoval in his Thursday State of the State address is expected to ask businesses to file data with the Department of Taxation so the impact of a services tax could be analyzed. There would be no immediate plans to implement a tax on services, however.

A package of taxes set to expire on June 30 this year, generally referred to as the “sunset taxes,” would also continue for another two years and would bring in about $650 million. The package includes higher payroll taxes for the state’s largest employers, a 0.35 percentage point sales tax increase and a $100-a-year increase in the business license fee.

All told, about $1.2 billion in additional tax revenue would be generated in Sandoval’s tax plan, which will require a two-thirds vote in both houses of the Legislature. Both houses are controlled by Republicans.

He will also need support from the business community, including retailers, mining and gaming, among others.

The additional funding would allow the governor to deal with other budget demands, including mental health and Medicaid, in addition to his focus on public and higher education.

With $1.2 billion in additional revenue, total general fund spending over two years would exceed $7 billion and would allow him to seek funding for projects such as the new medical school proposed at UNLV. The initial funding request is about $30 million for the project.

Sandoval will announce details of his 2015-17 budget, and how he wants to pay for it, in a statewide televised address at 6 p.m. Thursday.

While the revenue side of Sandoval’s new budget has been shrouded in mystery, the governor has made no secret that his priority for the new budget, and for the remainder of his new four-year term as governor, will be improving public education.

Sandoval has kept the details of how he will accomplish his goal secret as well, saying Tuesday only that he will present a “comprehensive” approach to improving education in his address.

“What I want to do is to identify a plan to improve the delivery of education in Nevada for the benefit of our K-12 students as well as higher education,” he said. “It’s going to be a comprehensive approach to education.”

But school choice, most likely through an opportunity scholarship program giving businesses a tax credit for contributing to a scholarship fund, is expected to be part of his overall plan. The money would be distributed on a means-tested basis, allowing students at low-performing schools to attend the school of their choice.

He is also expected to push for more charter schools as part of his reform plan.

But he also wants funding for efforts to ensure that students can read by third grade, with holding them back as an alternative, and for expansion of the “Teach for America” program to bring new teachers into the classroom.

Part of the reform plan is expected to include a new funding formula approved by an interim legislative committee over the summer. The recommendations are that the formula include at least 50 percent more in per pupil spending on students in poverty or with limited English proficiency.

The Clark County School District is expected to be the biggest beneficiary from the proposed change to the state public education funding formula because of its higher populations of the weighted groups.

Some lawmakers and policy groups argue that the state can fund critical needs while still living within its means.

The Nevada Policy Research Institute, a conservative think thank, says that if Sandoval and lawmakers pursue tax reform it should be on a revenue-neutral basis. Current tax revenues in Nevada are already more than adequate to provide high-quality government services, the group says.

But many others believe that short of some revenue producing changes to Nevada’s tax structure, it will be tough for Sandoval to follow through on his inaugural address theme of dedicating his next four years to helping Nevada’s schoolchildren succeed.

This includes Senate Majority Leader Michael Roberson, R-Las Vegas, who on Monday said he hopes to approve a plan by March that would raise new revenue for education.

“We are not funding education adequately in this state,” Roberson said.

“We cannot continue to be near the bottom of most rankings,” he added, referring to low graduation rates and other measures of Nevada students’ skills compared to other states. “We know we need education funding and education reform. … I know the governor will lead on this.”

Getting a tax plan through the Legislature is always a challenge, but it is even more so this year because of a divided Republican-controlled Assembly, which was handed the keys to power in a surprise sweep on Nov. 4. The 25-member GOP caucus has a “no tax” contingent and a more moderate group that is willing to consider new revenue as a way to balance the state budget.

The divisions have led to threats of recalls, ousters of conservatives from leadership roles in the Assembly and much bitterness.

But there is also a coalition of Democrats and some Republicans who want to increase funding for public education.

The legislative session begins Feb. 2 and is scheduled to conclude by June 1.

FUCK the Nevada “Supreme” Kangaroo Court – Strippers have 1st Amendment Rights

stippersRENO, Nev. (MyNews4.com & KRNV) — The Nevada Supreme Court has decided a 10 percent tax on strip club admission doesn’t violate exotic dancers’ first amendment rights of free expression. vince neil

Justices ruled it was constitutional to tax the clubs and other live entertainment because the tax is content-neutral, doesn’t target a small group of people, and doesn’t threaten to suppress ideas or viewpoints.

The broad-based tax applies to many events but exempts some live entertainment, including boxing, Nascar races and minor league baseball.

nevada supreme court

judge tatroStrippers Argue Free Speech In Court, Don’t Stay In Vegas
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The Nevada Supreme Court will decide whether Vegas strip clubs must pay a 10% entertainment tax imposed by state law. The tax covers fees, food and drinks. Although the clubs have been forced to pay it since 2003, they claim it’s unconstitutional and want a refund.

Why? Exotic dancers have First Amendment rights, the clubs say. This tax violates the Constitution. Sound crazy? It depends.

Lawyers for eight strip clubs say the tax violates the right to free speech. But the Nevada Department of Taxation sees the tax as just another excise tax on business transactions. An excise tax is like a sales tax only more targeted. Some people call these sin taxes, and that’s a name that seems apt here. vegas strip bus

Several courts have heard the case since 2006. But in case after case, Nevada’s tax has been upheld so far. Now Nevada’s highest court will take a look. Most observers think the tax will be upheld.

In fact, in other states taxes on similar activity have generally passed constitutional muster. In New York, court battles brewed for years over a sales tax exemption that was applied to artistic performances like ballet but not to so-called exotic dance. The question was whether lap dances could be classified as “art” and therefore be tax-exempt.

A key suit was filed by a New York club called Nite Moves. An adult juice bar, the club serves no alcohol but does serve lap dances. The club claimed lap dances were art so were tax-exempt, but the club consistently lost. See 677 New Loudon Corp., dba Nite Moves v. New York Tax Appeals Tribunal.
strip clubsThe club’s revenue comes from admission charges, sales of non-alcoholic beverages, and exotic dances. New York is collecting sales tax on the dances. The club relied on an exemption for musical performances.

Some argued only choreographed dances count, while lap dances are more extemporaneous. After losing in New York’s highest court, Nite Moves fired off a petition asking the U.S. Supreme Court to hear its appeal. That petition was rejected by SCOTUS.

Texas also has a Sexually Oriented Business Fee, generally referred to as a pole tax. It collects $5 from each patron of clubs featuring nudity and serving alcohol. There have been court battles over this tax too, but the Texas Supreme Court eventually upheld it. Dancing may be a way of expressing yourself, but the pole tax doesn’t violate the First Amendment, the court ruled.men strip

Even Illinois now has a pole tax. Getting any tax ruled as unconstitutional is tough. And while the specific language and effect of any tax must be examined, the likelihood of the free speech argument carrying the day seems small.

You can reach me at Wood@WoodLLP.com. This discussion is not intended as legal advice, and cannot be relied upon for any purpose without the services of a qualified professional.

source: http://www.forbes.com/sites/robertwood/2014/01/07/strippers-argue-free-speech-in-court-dont-stay-in-vegas/

stip club

1st amendment9th Circuit to strip-club dancers: Keep your distance

Friday, January 28, 2005

LA HABRA, Calif. — A federal appeals court has upheld La Habra’s ordinance requiring strip-club dancers to stay at least 24 inches from customers.

 

The ordinance was designed to target lap dancing, which the city claims is responsible for prostitution, crime, drug use and disease.

 

In a 3-0 ruling on Jan.26, the 9th U.S. Circuit Court of Appeals rejected arguments by Bill Badi Gammoh, owner of the city’s only adult-entertainment club, and by several lap dancers that the ordinance is unconstitutional.

 

The 2-foot limit does not deny the dancers their ability to perform, the judges said in Gammoh v. City of La Habra.

 

Attorney Deborah Fox, who represented the city in its fight with the owner of Taboo Gentleman’s Club, said it was an important ruling because “lap dancing is the financial linchpin of the adult industry and this is the end of the argument about its prohibition.”

 

Gammoh’s fight with the city began shortly after he opened the strip club in 1998 and filed a lawsuit challenging the city’s anti-lap dance ordinance as vague and unconstitutional.

 

The ordinance “unfairly impedes on (a dancer’s) right to expression and speech,” attorney Scott Wellman said.

 

The 9th Circuit disagreed. “The 2-foot rule,” Judge Richard Tallman wrote, “merely requires that dancers give their performances from a slight distance; it does not prohibit them from giving their performances altogether.”

 

Meanwhile, a Nevada judge ruled on Jan. 21 that a Las Vegas law prohibiting strippers from fondling customers during lap dances is unconstitutionally vague.

 

District Court Judge Sally Loehrer affirmed a lower court ruling that as many as five misdemeanor criminal cases filed against Las Vegas strippers should be dismissed.

 

The Jan. 21 ruling affects only dancers within city limits. The Clark County Commission in 2002 limited touching between strippers and patrons during private lap dances, specifically barring strippers from touching or sitting on the customer’s genital area. But the municipal code was not as specific, saying only that strippers and their patrons should not “fondle” or “caress” each other.

Under Loehrer’s ruling, no dancer in the city can be arrested for violating the municipal code. The city is considering an appeal.

Damn – Nevada lawmakers want to tax fun, sex and fast times!

Is prostitution “Live Entertainment” subject to tax or a “Service”?
burning man

Burning Man

Nevada brothels map

Nevada brothels map

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.”

See more: http://www.reviewjournal.com/news/nevada-legislature/nevada-lawmakers-want-tax-fun-sex-and-fast-times