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- 83rd Session (2025)
Assembly Bill No. 457–Assemblymember Considine
CHAPTER..........
AN ACT relating to taxation; requiring the Joint Interim Standing
Committee on Revenue to conduct a study during the 2025 -
2026 interim on the advisability and feasibility of treating
certain business entities as a single entity for the purposes of
the commerce tax and imposing a tax on the sale or transfer
of a controlling interest in an entity which possess es an
interest in real property in this State; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law imposes an annual commerce tax on each busine ss 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 budge t. (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 th e 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 an interest in real property in this
State should be administered. This bill requires the Committee to submit a report of
the results of the study and any recommendations for legislation to the Director of
the Legislative Counsel Bureau for transmittal to the 84th Session of the Nevada
Legislature.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sections 1-6. (Deleted by amendment.)
Sec. 6.5. 1. During the 2025 -2026 interim, the Joint Interim
Standing Committee on Revenue shall conduct a study on:
(a) The advisability and feasibility of , and estimated impact to
state revenue that would result from, treating as a single entity for
the purposes of the commerce tax imposed by chapter 363C of NRS:
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- 83rd Session (2025)
(1) A business entity primarily engaged in the business of
renting real property located in this State to other persons, which has
more than 50 percent of the value of the ownership interest of the
business entity owned or controlled, directly or constructivel y
through related interests, by common owners.
(2) A limited liability company, and any series thereof,
primarily engaged in the business of renting real property located in
this State to other persons.
(3) Any other type or form of entity engaged primar ily in the
business of renting real property located in this State to other
persons which the Committee determines is advisable to study.
(b) The advisability and feasibility of, and estimated impact to
state and local revenue that would result from, imposing a tax on the
sale or transfer of a controlling interest in an entity which owns an
interest in real property in this State and the manner in which such a
tax should be administered, including, without limitation, the
manner in which a change in the co ntrolling interest in an entity
which possesses an interest in real property should be reported and
the tax remitted.
2. On or before January 1, 2027, the Joint Interim Standing
Committee on Revenue shall submit a report of the results of the
study, incl uding, without limitation, any recommendations for
legislation, to the Director of the Legislative Counsel Bureau for
transmittal to the 84th Session of the Nevada Legislature.
Sec. 7. This act becomes effective upon passage and approval.
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