Nevada's Taxes to Increase

The 2008 Nevada State Legislature raised a number of taxes to close a $1 billion gap in the state budget for the next two years. Clark County's sales tax will increase from 7.75% to 8.1%, starting July 1, 2009. Business taxes and fees will also increase. The $100 annual business license fee will double to $200 and the payroll tax will nearly double from 0.63% to 1.17%. Small businesses will get a break with a 0.5% limit on the first $250,000 of a company's payroll. Room taxes had already been raised in March 2009 by $220 million. Most business people are relieved that the increase in taxes was not as severe as they had feared. However, Governor Gibbons is calling for a special secession because he believes that the state budget will still be in a deficit.

John Laub is the President of the CEO-CFO Group.

1. "Legislature: Tax Hikes of 2009 take $1 Billion Bite. Experts Consider Effects of New Levies." Ed Vogel. The Las Vegas Review-Journal. June 3, 2009.

2. "Gibbons Concerned Revenues Will Still Fall Short, Forcing a Special Session." Geoff Dornan. Bonanza News Service. June 9, 2009.

3. "Nevada Legislature 2009. Session Concludes with Cuts. Businesses Acquiesce to Tax Plan that Puts Pressures on Big Employers During Recession." Valerie Miller. The Las Vegas Business Press. June 14, 2009.