Business tax initiatives topic of Tuesday luncheon

The potential impact of initiatives to impose income-based taxes on Nevada businesses will be examined Tuesday at a luncheon at the Carson City Nugget.

Those interested in attending the luncheon need to register by 5 p.m. today by calling 882-1565.

Representatives of the Nevada Manufacturers Association, the Nevada Policy Research Institute, the Nevada Association of Independent Businesses, the Glenbrook Company/Eden Management and the Carson City Area Chamber of Commerce have studied the proposals and will explain the likely effects on businesses, said Larry Osborne, executive vice president of the chamber.

"The chamber is doing this to inform our members and other business people about what these tax measures will mean to their businesses and how they could affect the state's economy," Osborne said.

An initiative started by state Sen. Joe Neal of Las Vegas would increase the gross proceeds tax on gaming from 6.25 percent to 11.25 percent.

Neal estimates the increase would raise $388 million a year in new taxes. Forty-five percent of the money would go to public schools, 38 percent toward reducing the motor vehicle privilege tax, 8 percent to raising Nevada Highway Patrol employee salaries, 7 percent to economic development and 2 percent to fighting gambling addiction.

The Nevada State Education Association is behind another initiative that would impose a 4 percent tax on the net profits of all businesses in the state, unless the business's net profits were less than $50,000 a year.

Neal's proposal would raise an estimated $387 million a year, while the Association proposal would bring in about $250 million annual earmarked solely for public education.

Copies of the initiatives and estimates for the financial consequences will be provided to attendees at the luncheon, Osborne said.

Proceeds from $20 registration fee from the luncheon will help support the chamber's efforts to defeat the business profits tax initiative, Osborne said. Those include additional educational efforts aimed at the business community and the voting public.

And the chamber is part of a new statewide organization, the Coalition to Defeat the Business Income Tax, formed in response the association's proposal.