Business impact of governor's gross receipts tax

A new gross receipts tax on businesses forms the cornerstone of Gov.

Kenny Guinn's tax proposal as outlined in his State of the State speech last week.

The tax would impose on all Nevada businesses a .25 percent levy on revenues above $450,000.

The other business tax is the existing Business License Tax, which now costs businesses $100 per employee annually.

That tax, under the governor's plan, would be imposed on all businesses, including sole proprietors, and would be increased to $300 per employee until the gross receipts tax could be implemented, sometime in 2005.

After that, the socalled head tax would be reduced to $140 per employee per year.

The chart below outlines how much various businesses would pay in gross receipts (in red) and business license taxes (in blue) depending on revenues and number of employees.

Many in the business community oppose the gross receipts tax and it may become the focus of what many say will be the most contentious fight in the upcoming Nevada legislature.

Revenues $450,000 $1 million $10 million $100 million $500 million and under 10 $1,400 $1,400 $1,400 $1,400 $1,400 +$1,375 +$23,875 +$248,875 +$1,248,875 $2,775 $25,275 $250,275 $1,250,275 50 $7,000 $7,000 $7,000 $7,000 $7,000 +$1,375 +$23,875 +$248,875 +$1,248,875 $8,375 $30,875 $255,875 $1,255,875 100 $14,000 $14,000 $14,000 $14,000 $14,000 +$1,375 +$23,875 +$248,875 +$1,248,875 $15,375 $37,875 $262,875 $1,262,875 250 $35,000 $35,000 $35,000 $35,000 $35,000 +$1,375 +$23,875 +$248,875 +$1,248,875 $36,375 $58,875 $283,875 $1,283,875 500 $70,000 $70,000 $70,000 $70,000 $70,000 +$1,375 +$23,875 +$248,875 +$1,248,875 $71,375 $93,875 $318,875 $1,318,875