A Senate committee in Nevada has recently reviewed a new bill which hopes to simplify the live entertainment tax. Senate Bill 266 would instill an 8.5 percent tax on admission charges for performances at venues with an occupancy capacity over 200. The fiscal staff is punching out the numbers to determine whether or not it would generate more than the currently imposed tax.
An issue with the existing law lies in the exemptions and tiers on the tax as it currently stands. If there is no admission charge, an establishment must still collect a tax, as long as there is entertainment. An outdoor concert such as the Electric Daisy Carnival is exempt from the tax, but outdoor concerts on casino properties are not.
SB266 looks to put in place three stipulations which would bring the tax about; an admission charge, seating for 200 or more, and an actual performance. The bill would also force the Las Vegas Motor Speedway to cough up the tax until a second NASCAR race is brought to the facility. Baseball, on the other hand, would be exempt.
Discussion is in the works surrounding nonprofit organizations and the role they would play in the tax. Nevada Senator Mark Lipparelli suggested nonprofits be able to prove at least 80 percent of money raised goes to charities in determining whether or not they are exempt. Senator Greg Brower wants to see the annual event Burning Man pay up as well. “Burning Man raises a lot of money. A lot of money.” He continued, “It would be my intent to capture revenue from that event.”
