(Sandra Chereb of Las Vegas Review-Journal) – Carson City — Gov. Brian Sandoval’s plan to raise hundreds of millions of dollars for education by tying state business license fees to gross receipts was approved Tuesday by a Senate committee on a party-line vote.
The Senate Revenue Committee amended and approved Senate Bill 252 on a 4-3 vote. The measure now moves to the Senate floor, where getting votes needed for passage becomes more difficult.
SB252 would establish a tiered business license rate depending on the type of industry and gross revenue. It would replace a flat $200 annual levy currently paid by companies big and small. Under the measure, business license fees would range from $400 up to $4 million annually, though no existing business currently meets the revenue threshold to pay the highest amount.
The measure is the cornerstone of Sandoval’s $7.3 billion general fund budget proposal that includes $1.1 billion in new or extended taxes to finance an aggressive education agenda. The administration says overhauling the business license fee schedule is the fairest way to raise revenue and would bring in $250 million a year.
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