Nevada has a Broad-Based Business Tax!

Just to set the record straight, there is currently a broad-based business tax in the State of Nevada.

There are several elected officials and lobbyists in the Legislative Building who continue to claim that there is no such thing or that we need to “broaden the tax base.”

The Modified Business Tax, the payroll or “Jobs Tax,” is assessed on any persons doing business in Nevada who are required to pay unemployment insurance. Who is required to pay that insurance? With very few exceptions, employers of one or more person with total wages paid of $225 or more during a calendar quarter pay the Jobs Tax.

That is about as broad-based as you can get!

While some use the “no broad-based tax” line to argue for gross receipts or corporate income taxes on large, out of state firms that “don’t pay their fair share,” the truth is that every business pays the Jobs Tax, sales tax, property tax, unemployment insurance, workers comp insurance, local fees, etc. In fact, large corporations pay A LOT of taxes in this state.

So, while an intelligent debate can be had on whether or not this broad-based tax is too high or too low, it is absolutely false to claim that Nevada does not have a broad-based business tax.