58°F
weather icon Mostly Cloudy

Small businesses hope new Nevada tax rules curb e-commerce giants

FFaced with competition from online sales, Renee Poole figured, if you can’t beat them, join them.

The owner of Not Just Antiques Mart in Las Vegas, Poole has been migrating more and more of her business to online auctions.

“The kids have totally changed the marketplace,” she said. “I think people don’t like shopping at stores anymore.”

Poole hopes revised Nevada regulations will help even the playing field for brick-and-mortar retailers like her.

State rules that took effect Oct. 1 require online retailers without a physical presence in Nevada to collect and pay a sales tax of 8.25 percent in Clark County. This means a purchase of $100 online will have the added sales tax of $8.25.

Companies like Amazon and Bed Bath &Beyond with physical property in the state have already had to pay sales tax on online sales. But in June, the Supreme Court ruled that states may tax companies like Wayfair, Overstock.com and Newegg even if they don’t have property in the state. This removes one advantage those companies have over businesses like Poole’s.

Affected companies must start collecting sales tax the first day of the month that is 30 days after the company’s sales in Nevada exceed $100,000 or the company makes 200 or more separate transactions for delivery into the state.

Those rules should help protect small businesses that sell online from paying the tax, said Mike PeQueen, managing director and partner at wealth management firm HighTower Las Vegas.

Revenue targets

Tax revenue from online sales should grow as more people buy over the internet. But the state doesn’t expect it to result in an immediate windfall.

State estimates show $850 million more in sales will get taxed with the new rules. That brings the total amount of online retail sales the state can tax to around $2.1 billion, or about 5 percent of all taxable sales, according to the state Department of Taxation.

Department estimates show that collecting sales tax from online businesses could add between $17 million and $29 million annually to the state general fund, which receives 2 percent of the sales tax, according to the department.

“It will, however, take time to reach many of the affected businesses and bring them into compliance,” according to a statement from the state Department of Taxation.

Nevada’s rules follow those in South Dakota, the state that bested online retailers in the Supreme Court decision, said John Buhl, spokesman for The Tax Foundation, a nonpartisan Washington-based think tank.

Poole said that, even with the revised sales tax, she still fears competition from antique marketplaces on social media websites where sellers ignore taxes.

For Tom Clark of North Las Vegas, shopping online is a necessity.

E-commerce is sometimes easier than brick-and-mortar stores for Clark, a military veteran who gets around using a wheelchair and his service dog, Magnum.

He said he is now more likely to look on social media websites for private sellers, avoid the tax and pay the lowest price he can find. But he understands why governments want to tax online sales.

“Death and taxes,” Clark said. “You can’t get around either one of them.”

Don't miss the big stories. Like us on Facebook.
THE LATEST
Beatty Clinic gets tons of help with new a/c

BEATTY — The Beatty Foundation, an affiliate of AngloGold-Ashanti (AGA), did tons of good at the Beatty Clinic on March 22. Nine tons, exactly.

11th Annual Chili Cook-Off brings tempting tastings and festival fun

The 11th Annual International Chili Society and Silver State Chili Cook-Off took over Petrack Park this past weekend for three days filled with savory tastings, fun and activities and of course, some intense culinary competition.

Pahrump homeschoolers dance the night away

Pahrump Valley’s homeschool youth were whisked away into the Enchanted Forest this month, with local Moose Lodge #808 hosting a night of dancing and revelry in honor of an age-old adolescent right-of-passage, prom.

Looking for some family fun for Easter? Hop over to Simkins Park

Anyone looking for a fun, family-friendly festivity to enjoy this holiday can hop on over to Simkins Park to join the Mills family as they celebrate Easter Sunday with worship music, free food and an enormous 14,000-egg hunt that is sure to bring a smile to hundreds of faces.

Campground fees to increase at Death Valley National Park

DEATH VALLEY, Calif. — Visitors to Death Valley National Park can expect a slight increase in entrance fees for various campgrounds beginning on May 1.

Clerk staffer Cori Freidhof appointed interim leader

Nye County Clerk Mark Kampf’s time in office officially comes to a close on March 31 and deputy clerk Cori Freidhof has now been selected to assume that vacated seat. Freidhof will take over the office as of Monday, April 1 and fulfill the unexpired term ending Jan. 1, 2027.

Gaming can have impact on us

When does gaming cross the line from recreational relaxation to problematic behavior? How do video games and gambling relate? What resources are available for those who find themselves struggling to control their relationship with video games and gambling?

County eyeing impact fee increases

The cost to develop in Pahrump could go up, with a public hearing on a proposal to raise local impact fees set for next month.

Here’s who filed as political candidates in Nye County

Locals have filed their political candidacy as of March 15 and this year two major offices in Nye County will be up for grabs in the general election. Nye County residents have to first narrow down their preferred party candidate on June 11 in the primary and then vote in November to support their preferred candidates.