Taxes

What’s in Sandoval’s new tax package

Late last night, Gov. Brian Sandoval’s team released the legislative language for his new tax package. The tax package is being proposed as an amendment on AB464.

Less than 24 hours later, at 3 p.m. today, there will be a joint meeting of the Assembly Ways and Means and Senate Finance Committees to discuss the amendment.

With only broad details being known beforehand, this will be a running blog of what’s in the bill.

Commerce tax

Sandoval is continuing his push for some form of a gross receipts tax and has changed the name of his gross receipts business license tax to a gross receipts “commerce” tax. Both versions of the tax are based on the same principle of taxation that voters rejected 4 to 1 in November.

In Sandoval’s gross receipts BLT proposal, there were over two dozen industry specific rates. In his new proposal, Sections 24 to 49, similar rates are maintained, although they will be assessed as rates, instead of being based on the tables from SB252.

The proposed rates are:

  1. Agriculture, forestry, fishing and hunting: .063 percent
  2. Mining: .051 percent
  3. Utilities and telecommunications: .136 percent
  4. Construction: .083 percent
  5. Manufacturing: .091 percent
  6. Wholesale trade: .101 percent
  7. Retail trade: .111 percent
  8. Air transportation: .058 percent
  9. Truck transportation: .202 percent
  10. Rail transportation: .331 percent
  11. Other transportation: .129 percent
  12. Warehousing and storage: .128 percent
  13. Publishing, software and data processing: .253 percent
  14. Finance and insurance: .111 percent
  15. Real estate and rental and leasing: .25 percent
  16. Professional, scientific and technical services: .181 percent
  17. Management of companies and enterprises: .137 percent
  18. Administrative and support services: .154 percent
  19. Waste management and remediation services: .261 percent
  20. Educational services: .281 percent
  21. Health care and social assistance: .190 percent
  22. Arts, entertainment and recreation: .24 percent
  23. Accommodation: .2 percent
  24. Food services and drinking places: .194 percent
  25. Other services: .142 percent
  26. Unclassified business category: .128 percent