One of the many bills that made it through this year's legislative session is a reform of the state's live entertainment tax.
Lawmakers closed a series of loopholes in the tax code, extending the tax to a events and shows that were previously exempt.
And, needless to say, not everyone is happy about the change.
James Nash with Bloomberg reported on the change and talked with organizers of two of the biggest outdoor festivals in Nevada -- Burning Man in the Black Rock Desert and the Electric Daisy Carnival at the Las Vegas Motor Speedway.
"These events do produce a lot of tax revenue for Nevada indirectly, but because of exemptions to the law that were written decades ago, they don't produce a direct benefit to the state," Nash said. "That's the purpose of this change in the law," Nash said.
The changes might actual lower the tax rates of other events, especially events held indoors, like at the MGM Grand Garden.
Nash said the original law was created for "cabarets and burlesque shows, not for raves in the desert."
"It is an attempt to bring the tax code up to 2015 standards," Nash said.
The governor's office says the bill is not about making millions of dollars for education, and will actually be revenue-neutral.
Nash said organizers of EDC are worried that the tax could push them into a negative cash flow situation, which could push them back to California.
However, he doubts Burning Man would leave the state because they really need that much empty space for the event.
James Nash, Bloomberg
