Struck = removed from the bill ·
added = the amendment's new text.
AssemblySession Bill(83rd) A AB457 R1 623 Amendment No.
457–Assemblymember623 ConsidineSenate CHAPTER..........Amendment to Assembly Bill No.
457 First Reprint (BDR 32-167) Proposed by:
Senate Committee on Revenue and Economic Development Amends:
Summary:
Yes Title:
Yes Preamble:
No Joint Sponsorship:
No Digest:
Yes ASSEMBLY ACTION Initial and Dat| SENATE ACTION Initial and Date Adopted Lost | Adopted Lost Concurred In Not | Concurred In Not Receded Not | Receded Not EXPLANATION:
Matter in (1) blue bold italics is new language in the original bill;
(2) variations of green bold underlining is language proposed to be added in this amendment;
(3) red strikethrough is deleted language in the original bill;
(4) purple double strikethrough is language proposed to be deleted in this amendment;
(5) orange double underlining is deleted language in the original bill proposed to be retained in this amendment.
JFD/BJF - Date:
5/18/2025 A.B.
No.
457—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) Page 1 of 4 *A_AB457_R1_623* Senate Amendment No.
623 to Assembly Bill No.
457 First Reprint Page 3 ASSEMBLY B ILLNO .
457–ASSEMBLYMEMBER C ONSIDINE 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.] certain changes to provisions governing taxation.
(BDR [32-167)] S-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 2025-2025-2026 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 possesses an interest in real property in this State;
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 rate363C.200) thatExisting islaw basedcreates on the industry in which the business entity is Committee on Revenue and authorizes a Joint Interim Standing Committee,m Standing including the Joint Interim Standing Committee on Revenue,Revenue toanded. conduct studies directed by the Legislature or the Legislative Commission, within the limits of the Committee’s budget.
(NRS 218E.320,authorizes 218E.330)a ThisJoint billInterim requiresStanding Committee, including the Joint Interim Standing Committee on RevenueRevenue, to conduct astudies studydirected duringby the 2025-2026Legislature interimor concerningthe Legislative Commission, within the advisabilitylimits andof feasibilitythe of:Committee’s budget.
(1)(NRS treating218E.320, as218E.330) aThis singlebill entityrequires for the purposesJoint ofInterim theStanding commerceCommittee taxon certainRevenue businessto entitiesconduct thata arestudy primarilyduring person,the which2025-2026 mustinterim include,concerning without limitation, the estimatedadvisability impactand tofeasibility statether revenue of such: treatment;
(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;
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 an interest in real property in this theState resultsshould ofbe theadministered. study and any recommendations for legislation to the Director off the Legislative Counsel Bureau for transmittal to the 84th Session of the Nevada Legislature.
EXPLANATIONThis –bill Matterrequires inthe boldedCommittee italicsto issubmit new;a report of the results of the study and any recommendations for Session of the Nevada Legislature.
matterLegislative betweenCounsel bracketsBureau [omittedfor material]transmittal isto materialthe to84th beSenate omitted.Amendment No.
THE623 PEOPLEto OFAssembly THEBill STATENo. OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sections457 1-6.First Reprint Page 4 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1.
2.
(Deleted by amendment.) Sec.
3.
(Deleted by amendment.) Sec.
4.
(Deleted by amendment.) Sec.
5.
(Deleted by amendment.) Sec.
6.
(Deleted by amendment.) Sec.
During the 2025-2026 interim, the Joint Interim Standing Committee on Revenue shall conduct a study on:on [the] :
(a) The advisability and feasibility of,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:
-[(a)] 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)through Arelated limitedinterests, liabilityby company,common andowners. any series thereof, primarily engaged in the business of renting real property located in this State to other persons.
(3)[(b)] Any(2) otherA typelimited orliability formcompany, ofand entityany engagedseries thereof, primarily engaged in the business of renting real property located in this State to other personspersons. which the Committee determines is advisable to study.
(b)[(c)] The(3) advisabilityAny andother feasibilitytype of, and estimated impact to state and local revenue that would result from, imposing a tax on the sale or transferform of aentity controllingengaged interestprimarily in anthe entitybusiness whichof ownsrenting an interest in real property located in this State andto theother mannerpersons in which such a tax should be administered, including, without limitation, the mannerCommittee indetermines whichis aadvisable changeto instudy. the controlling interest in an entity which possesses an interest in real property should be reported and the tax remitted.
(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 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.
~~~~~ 25 - 83rd Session (2025)