The Nevada Supreme Court has ruled that State Constitution requires a two-thirds majority vote in legislature to pass any bill on any revenue-generating decision.
The ruling in a case filed in 2019 says the Democratic-led legislature cannot repeal a scheduled decrease in the state's payroll tax rate except by a two-thirds vote.
In 2019 Democrats introduced SB 542 to extend a $1 technology fee from any DMV transaction and SB 551 to reduce payroll taxes. The decision nullified both bills that would have kept two taxes from expiring.
Governor Sisolak issued a statement on the ruling saying, "After todays ruling from the Nevada Supreme Court, we will continue to work with legislative leadership on budget implications and State officials will analyze the decision to determine next steps."
Senate Majority Leader Nicole Cannizzaro and Assembly Speaker Jason Frierson released the following statement on the Nevada Supreme Court’s Modified Business Tax decision:
“In 2019, the Legislature blocked an unnecessary corporate tax cut and instead funded raises for educators and critical school safety infrastructure. In response, Legislative Republicans made it their primary mission over the last two years to protect the bottom lines of some of the state’s largest corporations at the expense of Nevada schools. It is disheartening that Nevada families must pay a price for a lawsuit from colleagues who were unwilling to stop playing partisan politics with our children’s education dollars. Despite their misguided decision to push forward, even in the face of unprecedented shortfalls to our state's budget this past year, we will continue to seek ways to require large, profitable corporations to pay their fair share and support Nevada families. Going forward, we call on our colleagues to work with us on meaningful revenue legislation this session.”
Read the full ruling below.
