Updates

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.

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