Requires the Joint Interim Standing Committee on Revenue to conduct a study concerning certain changes to provisions governing taxation. (BDR S-167)

2025 Regular Session Introduced by Venicia Considine

AB 457 requires a 2025–26 interim study on (1) treating property-renting entities as a single commerce tax taxpayer and (2) taxing sales or transfers of controlling interests in en

Chapter 263.

Main purpose

AB 457 requires the Nevada Joint Interim Standing Committee on Revenue to conduct a directed study (during the 2025–2026 interim) on potential changes to taxation rules affecting (1) how certain entities that rent real property are treated for the commerce tax and (2) the advisability and design of a tax on the sale or transfer of a controlling interest in an entity that owns real property in Nevada.

Key provisions

Study scope (to be conducted during the 2025–2026 interim):

Evaluate the advisability and feasibility of treating specified business entities (principally those primarily engaged in renting real property in Nevada) as a single entity for commerce tax purposes. The study must include, at minimum, an estimate of the impact of that treatment on state revenue.
Evaluate the advisability and feasibility of imposing a tax on the sale or transfer of a controlling interest in an entity that owns an interest in Nevada real property. This portion must include estimated impacts on state and local revenue and examine how such a tax should be administered — including how changes in controlling interest would be reported and tax remitted.

Deliverable: the Joint Interim Standing Committee on Revenue must submit a report of study results and any legislative recommendations to the Director of the Legislative Counsel Bureau for transmittal to the 84th Nevada Legislature.

Deadline: Report due on or before January 1, 2027.

Related context: The commerce tax currently applies to business entities with Nevada gross revenue exceeding $4,000,000 (NRS chapter 363C); the study must consider the implications of treating multiple entities as a single taxpayer for that tax.

Who is affected

Primary administrative responsibility: Joint Interim Standing Committee on Revenue (Legislature).

Potentially affected parties (if later legislation follows study recommendations): owners/operators of entities that rent real property in Nevada (including corporations, partnerships, LLCs/series LLCs), investors using separate legal entities to hold property, state and local governments (revenue impacts).

State agencies (e.g., Department of Taxation) may be involved in analysis or implementation if new tax measures are proposed.

Timeline / procedural notes

Study period: 2025–2026 interim.

Report due: January 1, 2027, to Director of Legislative Counsel Bureau for the 84th Legislature.

Bill became law and is effective upon passage and approval.

Earlier versions of the bill would have directly required combined-taxpayer treatment; those provisions were removed and replaced with this study requirement via amendments.

Potential implications

The study could lead to legislative proposals that change tax treatment of multi-entity property ownership (affecting tax liability for holding structures and transfers of controlling interests) and influence future state and local revenues. The mandated analysis of revenue and administrative mechanisms is intended to inform policy choices before any statutory changes are adopted.

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