Lawmakers OK annual business-fee regulations

The Las Vegas and Reno-Sparks convention authorities made a last ditch attempt Wednesday to make all public conventions exempted from the state's annual business license fee.

But they were rejected by the legislative commission after being told the proposal by Luke Puschnig of Las Vegas Convention and Visitor's Authority would create a huge exemption reaching beyond the law passed by the 20th special session of the Legislature.

"What Mr. Puschnig is suggesting expands the definition of a convention to any retail event," said Tax Commission Chairwoman Barbara Smith Campbell. "It would be a broadly expanded exemption."

At issue is the $100 annual fee the new law will charge each vendor at shows ranging from the Candy Dance to the Harvest Festival in Las Vegas and numerous other events around the state.

Legislative Commission Chairman Randolph Townsend, R-Reno, said he believes the changes designed to exempt small Nevada vendors and craft makers defined as home businesses are on target and that expanding beyond that is too much.

Sen. Mike McGinness, R-Fallon, who said he and his wife annually attend such shows in the area, said he too believes the small home-based businesses which produce crafts in Nevada are exempt under the regulations.

"We have exempted those bird-house builders in general," he said. "If we offer any further exemption, we would be offering an exemption to out of staters."

He added after the vote that many of those crafters attend several shows a year, pointing out that the annual fee becomes just $25 per show for those who attend four shows and $20 per show for those who set up their wares at five.

Senate Minority Leader Dina Titus, D-Las Vegas, pointed out that most of the examples cited by Puschnig and other opponents were large businesses which sell recreational vehicles and the like, not small crafters.

Home-based businesses are defined basically as those operated out of a home instead of a store front and which net less than $21,500 a year. Taxation Department officials said in earlier meetings that pretty much exempts the small crafters who would be most hurt by the fee.

The commission has already set up regulations for implementing the new business payroll, banking and live entertainment taxes. Those were approved in December.

The action Wednesday nearly completes the process of drafting and approving regulations for the taxes created or increased by SB8 last July.

Contact Geoff Dornan at nevadaappeal@sbcglobal.net or 687-8750.