Panel: Nevada margins tax proposal leaves many unanswered questions
By: LAURA MYERS
If Nevada voters approve a proposed 2 percent margins tax on business in November, there will be a lot of uncertainty about which companies will be taxed and whether the $750 million annual revenue raised will really be used to increase education funding, said experts who debated the ballot question in Las Vegas on Monday.
“The devil is always in the details,” Jeremy Aguero of Applied Analysis said.
Aguero, who has done studies for proponents and opponents, said it’s unclear, for example, how “pass through” revenue would be taxed. A general contractor who wins a $1 million job and spends $800,000 to hire subcontractors to do the work may or may not be taxed on the full amount — even if the subcontractors are taxed on their revenue — Aguero said.
“This is not entirely clear,” he said. “There will probably be some court cases.”
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