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Updated: Nevada Gov. Brian Sandoval opposes state corporate tax proposal

Updated: Nevada Gov. Brian Sandoval opposes state corporate tax proposal
Posted at 4:59 PM, Aug 31, 2016
and last updated 2016-09-01 14:41:14-04

Nevada Gov. Brian Sandoval says he opposes the state treasurer's plan to introduce a corporate income tax in the next legislative session.

In a statement sent to 13 Action News on Wednesday, a spokeswoman for the Republican governor said he's opposed to state treasurer Dan Schwartz's proposal to replace the state's payroll and gross revenue taxes on Nevada businesses with a corporate income tax.

"Under our existing tax structure, Nevada is once again one of the fastest-growing states in the nation in terms of job creation and population," Sandoval spokeswoman Mari St. Martin said. "The Governor does not support an income tax of any kind. If the Treasurer wants to pursue this, he can make his case to the Legislature.” 

Schwartz's office announced Tuesday that he planned to submit legislation repealing the two taxes and creating a corporate income tax, as well as reviewing Nevada's corporate secrecy laws and studying corporate income.

Nevada lawmakers approved roughly $1.4 billion in new and extended taxes last year, including the creation of the Commerce Tax, or a tax on business revenue. The tax is imposed on business income over $4 million and levies different rates based on industry.

Schwartz said in a statement Tuesday that the proposal would simplify the state's "complicated tax structure." Nevada is one of six states without a corporate tax, according to the Tax Foundation.

Nevada's part-time legislature is scheduled to begin in February 2017.

Update: Sept.1: Treasurer Schwartz's office sent the following statement to KTNV after this story was published

We appreciate the Governor’s response and position on a corporate income tax.  Nevada has an overly complex and burdensome tax structure that does not support economic growth.  The Treasurer’s intent in submitting the bill is to give the State options going forward.   Before any decision on a corporate income tax is made, however, we need to know how much income is generated by Nevada corporations.  Believe it or not, this data does not exist now.  Thus, the bill’s first order of business is to create a committee to generate that information. We can then take the next step.”