As the economy has increasingly moved to digital format, a loophole has been opened in the sales tax, which is only applied to the purchase of physical products. Big tech companies are minting new millionaires every day, oftentimes disrupting industries and exploiting tax loopholes. At the same time, the Commission on School Funding identified expanding the base on the sales tax as one of their main recommendations in their plan to reach optimal education funding in 10 years.
Yesterday, NSEA members engaged at the K-12 Budget Subcommittee and Education Accountability Subcommittee to sound the alarm about the Governor’s proposed $2 budget. Instead of cutting education, we called on the Governor and Legislature to Pass the Plan offered by the Commission on School Funding to reach optimal education funding in 10 years. After years of work, the Commission identified optimal funding and proposed a revenue path to reach that level by 2035. That includes reforming property tax abatements and depreciation and expanding the base on the sales tax. AB453 is an important step in passing the plan.
Sadly, there has been a fundamental contradiction in the actions of Nevada leaders when it comes to properly funding public education and other vital state services. While nearly every elected official claims to prioritize education, there’s a competing record of corporate tax giveaways, from Tesla to the Raiders, that cost the state over a billion dollars. Immediately after last session, the Governor convened a special session to give billionaire John Fisher $380M, including $180M in transferable tax credits, to build a baseball stadium in Las Vegas. This afternoon, legislators are considering extending the largest tax giveaway in Nevada history.
The effects of tax credits on the budget are real. According to the Economic Forum’s December projections, Nevada is estimated to lose $119M in general fund revenue to tax credits this year. That goes up to $143M next year, with $36M in credits for the A’s stadium applied without a shovel hitting the ground. In FY27 it rises to $157M. Those are funds that otherwise would be going to important services, including education. NSEA asks for your support of AB453. Please pass the plan.
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