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Nevada's business-friendly tax structure attracts California business owners

Posted at 8:28 PM, Feb 05, 2023

LAS VEGAS (KTNV) — Las Vegas, Henderson, and Reno are among the top 10 relocation cities for California businesses, according to the Greater Las Vegas Realtor Association.

Is Nevada becoming a gold mine for businesses fleeing the Golden State? Financial analyst Steve Budin says it is.

“Nevada has long had a reputation of being a business-friendly state,” Budin said.

It turns out tourists aren't the only ones heading to Las Vegas. With 56 projects under construction, valley realtor Anthony Luna and his colleagues agree — business relocation is booming.

“We’re back here in Vegas, and we plan on picking up where we left off back at the end of 2019,” said business owner Austin Pena.

Pena started Ready Set Solar in Las Vegas four years ago. Because of the pandemic and its negative effect on the economy, Pena and his partners decided to relocate the company to Texas. But now they’re back in town, and Pena says the company is saving millions of dollars by operating out of Nevada.

“It has helped us understand the value of a dollar and how we should be as efficient as possible,” Pena said.

Barry Stieb with real estate company Home Smart says just like Pena, he’s got many clients interested in moving their companies to Nevada. A big perk for some of these businesses: Nevada doesn't have a warehouse tax, Stieb explained.

“The fact that we don’t have a warehouse tax has moved a lot of companies simply because of warehouse goods,” Stieb said.

Stieb says so many businesses are relocating to Las Vegas that commercial space is becoming limited.

“We had a few clients looking for a warehouse and office space combined, for various reasons, and it’s tough out there to find that perfect space," she said.

Nevada’s business-friendly tax structure benefits not only businesses, but our residents, too, Budin argued.

“As you build office space, as you build warehouses, those buildings are paying property taxes into the county fund. Those taxes are used to pay for new schools, new firehouses, new police stations," he said.