We remain in the midst of a national debate over the 2020 election. However, the impacts of our local election will have a much greater effect on the operations of your business. I have the great privilege of being the Chairperson of the Henderson Chamber of Commerce’s Legislative Committee. I have spoken frequently about the pragmatic work this Committee does. For example, take a look at this clip from the recent State of the Chamber: https://vimeo.com/469555415 (password: sotc).
So now that the Nevada election is settled, what can we expect of the 2021 Legislature? The Governor and both Houses of the Legislature remain in the control of the Democrats. However, unlike the 2019 Legislative Session, the Assembly has a simple majority and not a super majority. That means that any revenue-related legislation (in other words TAXES) will require the support of at least a few Republicans.
Taxes will be a key issue in this Session. Due to the devastating economic effects of Covid-19, all state agencies will have to reduce their budgets by at least 12%. In order to minimize those budget cuts, there will be a push to increase state collected revenue. As such, you should expect to see moves to increase property taxes; sales tax; modified business tax; and the commerce tax.
Beyond taxes, you should expect to see greater efforts to enhance benefits to employees. In 2019, we saw an increase to the minimum wage and a mandate to provide paid time off. In the interim, the federal government created additional paid time off and family medical leave requirements for businesses of all sizes that are scheduled to sunset at the end of 2020.
There may be additional pushes toward encouraging union activity as well as limiting the ability of a business to use independent contractors.
Although not necessarily business related, expect to see legislation that affects health care and education.
Just as in previous years, I will be in the mix on these activities and will keep you up to date on changes as they are coming. Please be sure to follow me on social media: Twitter @Avivagordonesq, and on IG and FB @GordonLawLV to see real-time information as it becomes available.