Multistate Tax Alert: Nevada Legislature Takes No Action on Margin Tax Initiative
Placing the measure on the 2014 ballot; Revisions to taxation of mining also proposed
In February 2013 a Tax Alert was issued wherein we: (1) summarized an initiative petition that seeks to amend the Nevada Revenue and Taxation Code to add a new Texas-style, state-level margin tax; (2) described Nevada’s initiative process; and (3) reviewed the Nevada Supreme Court’s decision that upheld the margin tax initiative, thus sending the matter to the Nevada Legislature for further consideration.
In the attached Tax Alert we provide an update on the status of the margin tax initiative (referred to as Initiative Petition 1, “IP1” by the Nevada Legislature), including the Nevada Legislature’s failure to act regarding the proposed tax, thus placing the measure on the 2014 ballot. Also provided is a summary of the proposed margin tax and we describe a potential alternative tax measure that seeks to change how the mining industry is taxed.
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