AB457

Existing law imposes an annual commerce tax on each business entity engaged in business in this State whose Nevada gross revenue in a fiscal year exceeds $4,000,000 at a rate that is based on the industry in which the business entity is primarily engaged. (NRS 363C.200) Existing law creates the Joint Interim Standing Committee on Revenue and authorizes a Joint Interim Standing Committee, including the Joint Interim Standing Committee on Revenue, to conduct studies directed by the Legislature or the Legislative Commission, within the limits of the Committee's budget. (NRS 218E.320, 218E.330) This bill requires the Joint Interim Standing Committee on Revenue to conduct a study during the 2025-2026 interim concerning the advisability and feasibility of: (1) treating as a single entity for the purposes of the commerce tax certain business entities that are primarily engaged in the business of renting real property located in this State to another person, which must include, without limitation, the estimated impact to state revenue of such treatment; and (2) imposing a tax on the sale or transfer of a controlling interest in an entity which possesses an interest in real property in this State, which must include, without limitation, the estimated impact of such a tax on state and local revenue. This bill also requires the Joint Interim Standing Committee on Revenue to study the manner in which a tax on the sale or transfer of a controlling interest in an entity which possesses