AB 457 — Requires the Joint Interim Standing Committee on Revenue to conduct a study concerning certain changes to provisions governing taxation. (BDR S-167)

(ReprintedAssembly withBill amendmentsNo. adopted on April 21, 2025) FIRST REPRINT A.B.

457457–Assemblymember AConsidine SSEMBLYCHAPTER.......... B ILLN O.

457–ASSEMBLYMEMBER CONSIDINE M ARCH 17, 2025 ____________ Referred to Committee on Revenue SUMMARY—Requires the Joint Interim Standing Committee on Revenue to conduct a study concerning the application of the commerce tax to certain entities.

(BDR 32-167) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

requiring the Joint Interim Standing Committee on Revenue to conduct a study during the 2025-20262025- interim on the advisability and feasibility of treating certain business entities as a single entity for the purposes of the commerce tax;tax and 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;

(NRS 218E.320, 218E.330) This bill requires the Joint Interim Standing Committee on Revenue to conduct a study during the 2025-2026 theinterim purposesconcerning of the commerceadvisability taxand certainfeasibility businessof: entities that are primarilyntity for engaged in the business of renting real property located in this State to another person.

This(1) billtreating requiresas the Committee to submit a reportsingle ofentity for the resultspurposes of the studycommerce andtax anycertain recommendationsbusiness forentities legislationthat toare theprimarily Directorperson, ofwhich themust Legislativeinclude, Counselwithout Bureaulimitation, forthe transmittalestimated impact to thestatether 84threvenue Session of thesuch Nevadatreatment; Legislature.

-and *AB457_R1*(2) –imposing 2a –tax THEon PEOPLEthe OFsale THEor STATEtransfer OFof NEVADA,a REPRESENTEDcontrolling INinterest SENATEin ANDan ASSEMBLY,entity DOwhich ENACTpossesses ASan FOLLOWS:interest in real property in this State, which must include, without limitation, the estimated impact of such a tax on state and local revenue.

SectionThis 1.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 an interest in real property in this the results of the study and any recommendations for legislation to the Director off 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:

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During the 2025-2026 interim, the Joint Interim Standing Committee on Revenue shall conduct a study onon: the advisability and feasibility of treating as a single entity for the purposes of the commerce tax imposed by chapter 363C of NRS:

(a) AThe businessadvisability entityand primarilyfeasibility engagedof, inand theestimated businessimpact of renting real property located in this State to otherstate persons,revenue whichthat haswould moreresult thanfrom, 50treating percentas ofa thesingle valueentity offor the ownershippurposes interest of the businesscommerce entitytax ownedimposed orby controlled,chapter directly363C orof constructivelyNRS: through related interests, by common owners.

(b)- 83rd Session (2025) – 2 – (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 constructively through(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.

(c)(3) Any other type or form of entity engaged primarily 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 controlling interest in an entity which possesses an interest in real property should be reported and the tax remitted.

H~~~~~ 25 - *AB457_R1*83rd Session (2025)