Three separate bills have been introduced in the 2015 Nevada legislative session proposing changes to the live entertainment tax.
Assembly Bill 392 proposes a Luxury Discretionary Spending Tax on admission to places of amusement and entertainment at non-gaming establishments (whether indoor or outdoor), for escort services, and sightseeing tours. The tax would be 8% for admission, food, beverages, and refreshments for facilities with occupancy of less than 7,500 and 8% on admission only for 7,500 or more. Merchandise would be exempt from taxation and there would be exemptions for government entities, charitable organizations, movies, NASCAR, playing sports, and a few others. DJ’s, even if not interactive, would be taxable entertainment. The primary change for gaming establishments is the 8% tax rate and eliminating the tax on merchandise.
Assembly Bill 393 proposes changes to live entertainment at gaming establishments so that an event is taxable only when an admission charge is imposed and at a rate of 8% similar to A.B. 392. However, many exceptions under current law for which admission is not typically charged, such as roving musicians and restaurant ambience music, would be eliminated.
Senate Bill 266 also proposes that the live entertainment tax be imposed only when there are admission charges, but continuing at the current rate of 10% on admission, food, refreshments, and merchandise if between 200-7,499, or 5% on admission only for 7,500+. Exemptions would remain for boxing, NASCAR, minor league baseball, trade shows, outdoor concerts at non-gaming establishments, etc., while others would be removed, including entertainment in the common area of a shopping mall, food and product demonstrations, and roving musicians and restaurant ambience music.