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.
The combined City County Relief Tax is worth another 2.25 percent on the tax rate, which could provide those local governments some $30 million a year.
Those are the elements that make up the 6.85 percent sales and use tax rate the state collects.
Local rates in different counties are higher because of optional levies for specific purposes including flood control, road construction, mass transit and open space.
Anderson said the estimates are based on national trends where 10 percent of retail activity is now attributed to online sales. Because of the high court ruling this week, he said taxation expects to recognize $2.6 billion in online taxable sales a year, nearly double the current levels.
He said moving forward, his staff will monitor and assess Nevada’s progress in making the changes needed to successfully implement the Supreme Court decision.
-->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.
The combined City County Relief Tax is worth another 2.25 percent on the tax rate, which could provide those local governments some $30 million a year.
Those are the elements that make up the 6.85 percent sales and use tax rate the state collects.
Local rates in different counties are higher because of optional levies for specific purposes including flood control, road construction, mass transit and open space.
Anderson said the estimates are based on national trends where 10 percent of retail activity is now attributed to online sales. Because of the high court ruling this week, he said taxation expects to recognize $2.6 billion in online taxable sales a year, nearly double the current levels.
He said moving forward, his staff will monitor and assess Nevada’s progress in making the changes needed to successfully implement the Supreme Court decision.
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