Nevada voters reject proposed margin tax
Multistate tax alert | November 5, 2014
On November 4, 2014, Nevada voters rejected the Education Initiative (the “Initiative”)¹ that would have enacted a gross receipts (“margin”) tax effective January 1, 2015.²
Nevada's margin tax
On November 4, 2014, Nevada voters rejected the Education Initiative (the “Initiative”)1 that would have enacted a gross receipts (“margin”) tax effective January 1, 2015.2 Had it been approved, the Initiative would have imposed a 2% tax on the “taxable margin” of “each business entity engaged in a business” in Nevada.3
1 The Initiative is accessible at: http://nvsos.gov/Modules/ShowDocument.aspx?documentid=2425.
2 Initiative § 83.2(a).
3 Initiative § 22.1. Natural persons not engaged in business, entities with total revenue of $1,000,000 or less, certain passive entities, and I.R.C. § 501(c) organizations would have been exempt from the tax. Initiative § 22.3.
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