RENO -- The debate about a proposed new tax on Nevada businesses is heating up. Businesses are getting together to oppose a margin tax. Among the businesses, is Tim Wulf's Jimmy John's restaurant near the University of Nevada, Reno.
"Here I am a little sandwich shop and we'll have a tax of between 30-thousand and 32-thousand dollars so yeah it's a big tax for us we're a very profitable business we'll just have to pay it and stay in business but it will hurt us it will hurt us big," Tim Wulf, president of JJ of Reno Incorporated, said.
Tim Wulf said small businesses, like his, would be hurt by the tax, which would require businesses with revenues of more than a million dollars a year to pay two percent. It's billed to support education.
"Those businesses that are on small margins like grocery stores, gas stations manufacturing they'll be hard-pressed to stay in business," Wulf said.
"Eighty-six percent of businesses will not have to pay this tax and it's unconscionable for these giant corporations to not step in and contribute their fair share," Bob Fulkerson of PLAN said.
Fulkerson said similar taxes are paid by businesses in most other states.
The initiative doesn't specifically require the tax money go to education, which Fulkerson said helps it withstand a legal challenge. Lawmakers would be advised the funds are for education, he said.
It is estimated the tax will raise 800-million dollars a year.
The issue will go before voters in November.
The teacher's union collected signatures to get the question on the ballot.