June 26, 2018
26 Jun 2018

Political Update – June 26, 2018





How Tesla uses cash from Nevada casinos to boost its bottom line

By Russ Mitchell 
Los Angeles Times
June 24, 2018

Given Elon Musk’s dubious track record for hitting his goals, it may be a roll of the dice whether the Tesla CEO delivers a profit later this year. Fittingly, his success will depend partly on money from Nevada casinos.

Since 2015, Tesla has boosted its bottom line by selling tax credits to casinos such as the MGM Grand.

The casinos use the credits, purchased at a discount, to lower the gambling taxes they pay the state. Tesla uses the proceeds to ease its losses or increase its profit. Musk told investors on June 5 that “it’s looking like” the company will be profitable later this year.

So far, Tesla has sold $131 million in credits to casinos and has booked a total of $163 million in anticipation of more sales soon.

Millions more will probably be used in the quarters ending in September and December. That could be enough to swing a loss to a profit for the company.

And Tesla’s accelerated rate of cashing in the credits could have consequences for the state of Nevada’s bottom line too. It has blown a big hole in the state budget surplus that Nevada officials expected for the fiscal year beginning July 1.

Keystone Corporation

Quote of the week

 


Quote:

"Tesla’s accelerated rate of cashing in the credits could have consequences for the state of Nevada’s bottom line too. It has blown a big hole in the state budget surplus that Nevada officials expected.alling us Nevadafornia." – Russ Mitchell 
"How Tesla uses cash from Nevada casinos to boost its bottom line"
Los Angeles Times,
June 24, 2018

 

Nevada may see millions from online sales tax

By Geoff Dornan 
Nevada Appeal
June 22, 2018

Taxation Director Bill Anderson says the Supreme Court ruling states can tax online sales could mean millions in revenue for Nevada.

The U.S. Supreme Court ruled Thursday states can tax online sales even if the business isn't located in the state. Nevada already imposes the sales tax on businesses that have a physical presence in the state.

"(Thursday's) ruling allows all states to tax the sales of those entities going forward regardless of whether they have a physical presence in the state," he said.

Anderson said preliminary assessments indicate that could mean nearly $30 million a year from the state's 2 percent sales tax.

If Anderson's projection is correct, the ruling will mean added cash for Nevada's local governments and the state's 17 school districts as well.

The Local School Support Tax rate is 2.6 percent which could generate $35 million for K-12 Education.

Keystone's Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone's Mission:

• To focus on candidate support on state legislative races and the governor's office.
• To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
• Support limiting Nevada state government spending to the rate of population growth.

P.O. Box 93596 | Las Vegas, NV 89193-3596

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June 19, 2018
19 Jun 2018

Political Update – June 19, 2018





What Nevada-fornia would look like

By Victor Joecks
Las Vegas Review-Journal
June 12, 2018

Nevada Democrats have selected their candidate for governor, but in many ways the result of Tuesday’s primary is irrelevant. The two top Democratic contenders and their allies spent millions acknowledging they’re both radical leftists who want Nevada to look like California.

Normally, a governor’s race isn’t this consequential. A party could lose the governor’s mansion but win a majority in one house of the Legislature. But given Nevada’s legislative landscape, that’s not an option for Republicans. Either Adam Laxalt is Nevada’s next governor or you can start calling us Nevadafornia.

Here’s what you can expect if Nevada has a Democrat governor next year.

Start with health care. All over the country, costs are soaring, and Medicaid is blowing up state budgets. California’s solution? Provide taxpayer-funded Medicaid to illegal immigrants. That’s what Democrats in the California Assembly propose to do.

Last year, the California Senate approved a single-payer health care bill — without a way to pay the estimated $400 billion cost. It died in the California Assembly, but Nevada Democrats have already passed a bill that would have offered people the chance to buy Medicaid coverage. Gov. Brian Sandoval vetoed it last session.

If there’s a Democrat signing bills in Carson City, expect some form of government-funded health insurance or health care to come to Nevada.

There’s no way to know what proposals such as this would cost Nevada — and government estimates are always notoriously low anyway. Adjust the California single-payer estimate to Nevada’s population, and it’d be a $30 billion annual tab. Nevada’s general fund budget is around $4 billion a year.

Spending like that — along with the promise of more for education and collective bargaining for state workers — means massive tax hikes. Don’t be deceived by campaign dodges. Steve Sisolak and Chris Giunchigliani have already called for property tax hikes.

Keystone Corporation

Quote of the week

 


Quote:

"Normally, a governor’s race isn’t this consequential. A party could lose the governor’s mansion but win a majority in one house of the Legislature. But given Nevada’s legislative landscape, that’s not an option for Republicans. Either Adam Laxalt is Nevada’s next governor or you can start calling us Nevadafornia." 
– Victor Joecks
"What Nevada-fornia would look like"
Las Vegas Review-Journal,
June 12, 2018

 

Funding doesn’t exist yet for new Las Vegas light-rail plan

By Art Marroquin, Las Vegas Review-Journal
June 18, 2018

Funding for a proposed high-capacity transit system in Las Vegas doesn’t exist yet.

Officials at the Regional Transportation Commission of Southern Nevada said they plan to aggressively pursue a federal transportation grant that could pay for up to half of a $750 million light-rail line on Maryland Parkway or a bus rapid transit route that would cost $335 million.

Another significant funding source would probably come from a sales tax increase that could be decided by Clark County voters in November 2020.

Keystone's Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone's Mission:

• To focus on candidate support on state legislative races and the governor's office.
• To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
• Support limiting Nevada state government spending to the rate of population growth.

P.O. Box 93596 | Las Vegas, NV 89193-3596

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June 12, 2018
12 Jun 2018

Political Update – June 12, 2018

Tesla credits will take most of excess revenue for Nevada

By Geoff Dornan
Nevada Appeal
June 8, 2018

The Economic Forum was told Friday that even though state revenues are more than $60 million ahead of forecasts year-to-date, most of that excess will disappear by the time the new budget is built.

Legislative economist Michael Nakamoto told forum members General Fund revenues so far are at $3.02 billion for Fiscal Year 2018. That’s just shy of $61.1 million more than projected by the forum a year ago.

But, Tesla has taken more than double the Economic Development tax credits the company expected and was forecast to claim this fiscal year. The projection used to build the budget predicted the company would claim $31.1 million but Tesla has taken $73.8 million so far this fiscal year.

The difference, $42.7 million, will come off that $61.1 million.

“That’s going to end up chewing up the overage we’ve seen year-to-date,” said forum member Craig Billings.

“When all is said and done, we’re not going to be anywhere near the $61 million ahead of forecast,” Nakamoto said.

LCB Chief Economist Russell Guindon told the five forum members projecting how many credits would be taken and when is a difficult process because the state has no control over when Tesla claims those credits and when those who buy them use them. But he said thus far, those buyers, almost exclusively casinos, are collecting on the purchased credits “almost instantaneously.”

Nakamoto and Guindon made it clear the issue impacts only the upcoming budget cycle. Tesla is entitled to a total of $195 million in tax credits under the contract spelling out how much the company must invest and how many workers it must hire. Nakamoto said Tesla is rapidly approaching the $3.5 billion it agreed to invest in the Gigafactory east of Reno and, at that point, has earned the right to claim the rest of the $195 million in tax credits.

Thus far, revenue collections are strong in the state’s “major General Fund Revenues.” While sales tax collections are a percent or $8.7 million below projections, gaming tax collections are $7.9 million ahead, the Insurance Premium Tax 2.6 percent or $7.6 million ahead and the Real Property Transfer Tax 18.9 percent or $11.8 million more than projected.

Quote of the week

 


Quote:

“LCB Chief Economist Russell Guindon told the five forum members projecting how many credits would be taken and when is a difficult process because the state has no control over when Tesla claims those credits and when those who buy them use them. But he said thus far, those buyers, almost exclusively casinos, are collecting on the purchased credits “almost instantaneously.” 
Geoff Dornan
“Tesla credits will take most of excess revenue for Nevada”
Nevada Appeal,
June 8, 2018

Keystone’s Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone’s Mission:

• To focus on candidate support on state legislative races and the governor’s office.
• To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
• Support limiting Nevada state government spending to the rate of population growth.

P.O. Box 93596 | Las Vegas, NV 89193-3596

To ensure that you continue receiving email updates,

please add Info@KeystoneNevada.com to your address book or safe list.
Click here to unsubscribe 
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June 6, 2018
06 Jun 2018

Political Update – June 5, 2018



3 ways to fix collective bargaining

By Victor Joecks
Las Vegas Review-Journal
May 29, 2018

If you hope to fix the Clark County School District’s problems, you must start in Carson City.

In Nevada, all local governments are creations of the state. They are like subsidiaries of a larger company. They have their own leaders and employees, but if the parent company tells them to do something, they must obey.

In some ways, this works out well. Have you ever wondered why the Clark County Commission — made up of seven Democrats — spends so little time talking about tax hikes? It’s not because they aren’t liberal — watching commissioners Steve Sisolak and Chris Giunchigliani move further and further to the left in their quest for the Democrat gubernatorial nod should convince you of that. Instead, it’s because they can raise taxes only when the state says they can — like with the More Cops Tax.

That’s the good. The bad is collective bargaining. The school district, along with every local government, can’t set its employees’ pay and benefits. Per state law, it must negotiate with an employee union. If district officials can’t reach an agreement, the dispute goes to binding arbitration and an unelected, unaccountable, out-of-state arbitrator picks the winner. The first criterion the arbitrator looks at is the district’s ability to pay.

This is why more money won’t fix the district’s budget problems. Give it more unrestricted money, and its unions will demand greater pay increases.

Keystone Corporation

Quote of the week

 


Quote:

"Have you ever wondered why the Clark County Commission — made up of seven Democrats — spends so little time talking about tax hikes? It’s not because they aren’t liberal — watching commissioners Steve Sisolak and Chris Giunchigliani move further and further to the left in their quest for the Democrat gubernatorial nod should convince you of that. Instead, it’s because they can raise taxes only when the state says they can — like with the More Cops Tax." 
– Victor Joecks
"3 ways to fix collective bargaining"
Las Vegas Review-Journal,
May 29, 2018

 

Poll shows dead heat in Democratic race for Nevada governor

By Ramona Giwargis
Reno Gazette-Journal,
May 29, 2018

A new poll has Nevada’s leading Democratic governor candidates in a dead heat just two weeks before Election Day — despite the candidates pouring millions into scathing campaign ads before the contentious primary election.

Keystone's Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone's Mission:

• To focus on candidate support on state legislative races and the governor's office.
• To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
• Support limiting Nevada state government spending to the rate of population growth.

P.O. Box 93596 | Las Vegas, NV 89193-3596

To ensure that you continue receiving email updates,

please add Info@KeystoneNevada.com to your address book or safe list.
Click here to unsubscribe 
Having trouble viewing this e-mail? View it in your browser