Have you heard about AB 362, a bill being considered in Nevada? It might sound like a dry piece of legislation, but it could have a big impact on our state’s economy—and not in a good way. Let’s break it down simply: AB 362 is a proposal that would change how taxes work when people buy shares in certain companies. The problem? It treats those purchases like they’re the same as buying a house or a piece of land, which they’re not. Here’s why this bill could spell trouble for Nevada.
It Gets the Basics Wrong
First off, AB 362 gets something basic wrong. When you buy shares in a company—say, a business that owns real estate—you’re not buying the property itself. You’re investing in the company, which involves a lot more than just land or buildings. It’s about the whole operation: the people running it, the financial risks, and the potential rewards. But this bill wants to insert a real estate transfer tax on those share purchases anyway. That’s like taxing you for buying a car because it has tires—it doesn’t make sense and it’s not fair.
Double Taxation Hurts Everyone
AB 362 would also mean double taxation, and here’s how that could play out. Picture a company that owns an apartment building. If you buy shares in that company, AB 362 would make you pay a transfer tax right then—even though the apartment building itself hasn’t been sold and its title hasn’t changed hands. Later, if the company decides to sell the building to someone else, another transfer tax kicks in. So, the same property gets taxed twice: once when you buy into the company, and again when the company sells it. That’s an unfair burden on businesses and investors, and it could scare people away from investing in Nevada.
Nevada Needs Investment, Not Obstacles
Why does this matter? Because Nevada thrives when people invest here. Our state’s economy grows when businesses can attract money to build, expand, and create jobs. But AB 362 sends the opposite message: “Invest here, and we’ll tax you extra for it.” That could push investors to take their dollars to states with friendlier rules, leaving Nevada less competitive and slowing down our growth.
The Bottom Line
We should be focused on policies that make Nevada a great place to do business, not ones that pile on unnecessary taxes. AB 362 misunderstands how investments work, creates unfair double taxes, and risks driving money away from our state. That’s why it’s a bad idea for Nevada—and why lawmakers should say no to it.
