State Question #4
Shall the Sales and Use Tax Act of 1955 be amended to authorize the Legislature to amend or repeal any provision of this Act without an additional direct vote of the people whenever necessary to carry out any federal law or interstate agreement for the administration, collection or enforcement of sales and use taxes, and to repeal an exemption from the taxes imposed by this Act on certain aircraft and aircraft components?
If you've ever ordered from a catalogue before you know most of the time you pay shipping and handling. What you may not pay currently is state sales tax.
That's one reason many shop this way as well as through the internet. Back in 1967 the US Supreme ruled if the retailer had a physical presence in a state it was only responsible for collecting taxes for that state. NO other. It was re-affirmed by a 1991 decision. And at that time the court said Congress could draft legislation to make it easier for states to collect taxes from out of state retailers. That move is currently in the works.
Question 4 asks that Nevada's Sales and use tax be altered so that law makers can change the administration, collection or enforcement of sales and use taxes to carry out federal law or interstate agreement without a vote of the people.
If passed it means Nevada can plug into new interstate agreements and start collecting one hundred million in sales tax we've been losing on catalogue sales and other similar purchases.
Carole Villardo from the Nevada Taxpayers Association says you can't logistically go after the tax payer to get the sales tax.
"What this does it is simplifies collecting procedures and puts the onus on the businesses that are selling to do it. It’s not a new tax. It’s been on the books. There's just been no way to collect it."
Villardo says her association endorses Measure 4 because it helps local businesses stay on equal ground with out of state retailers. Villardo says keep in mind local businesses pay taxes and employ local residents.
Question 4 she says would not allow Lawmakers to change the tax rate. That's still up to a vote of the people.
Those who oppose the measure still want the ability to vote on issues like collection or enforcement of sales and use taxes in our state.