NFIB Applauds Nevada Supreme Court Decision Ruling Tax Increases Are Unconstitutional

Date: May 13, 2021

CARSON CITY, Nev. (May 13, 2021) – NFIB applauds the Nevada Supreme Court decision today in Legislature of the State of Nevada vs. Settelmeyer. In 2019, NFIB joined a coalition of Nevada legislators, Nevada businesses, and other business groups in a lawsuit challenging Senate Bills 542 and 551 as unconstitutional, maintaining that both bills “create, generate, or increase any public revenue in any form.” Article 4, Section 18(2) of the Nevada Constitution requires that any bill doing so be passed with a two-thirds majority in each House, and neither Senate Bill 542 nor 551 received a two-thirds majority in the Senate.  This morning the Nevada Supreme Court unanimously agreed with NFIB’s position, holding both bills unconstitutional.

“Today’s decision is welcome news to Nevada’s small businesses,” said Karen Harned, Executive Director of NFIB’s Small Business Legal Center. “Small business owners consistently cite taxes as a top business problem. The legislation would have added significant tax increases to the state’s small businesses struggling to recover after a long year of the pandemic and COVID-19 related government mandates. We applaud the Supreme Court for upholding the District Court’s ruling.”

“NFIB was honored to join Senator Settelmeyer and other members of the legislature in defending our state’s constitution. NFIB hopes this decision will encourage Nevada’s legislature to work in a more bipartisan manner to address our state’s problems,” said NFIB Nevada State Director Randi Thompson.

Senate Bill 542 would have boosted DMV fees by extending the sunset provision of an already-in-effect bill, creating almost $14 million in revenue for the State. Likewise, Senate Bill 551 would have generated roughly $98.2 million for the State, by revoking a scheduled payroll tax deduction. Both measures were signed by Gov. Steve Sisolak.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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