Friday, 30 May 2014 22:51

Nevada Margin Tax Garners Opposition from CAWA and AFL-CIO, Supported by State Education Association

The California Automotive Wholesalers' Association (CAWA) Board of Directors voted to oppose the Nevada Margin Tax that will appear on the 2014 General Election ballot November 4, 2014.

Also known as the Education Initiative, Question 3 of the ballot would impose a two percent “margins tax” on businesses in Nevada to fund an estimated $700 million a year for education. The initiative is sponsored by the Nevada State Education Initiative, which represents teachers. The Margin Tax Initiative is opposed by the Nevada business community and many elected officials including Governor Brian Sandoval. The Nevada State American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) recently reversed their position on the initiative and voted to oppose the measure.

“CAWA commits to continuing to help Nevada businesses in the automotive aftermarket parts industry remain strong and vibrant despite the many challenges they face on a daily basis. While CAWA values education and funding public schools, the Margin Tax will raise the cost of living for Nevadans, hurt employers and small businesses, and put Nevada businesses at a competitive disadvantage,” said Rodney K. Pierini, CAWA president and CEO.

CAWA is a regional automotive aftermarket trade association that represents auto parts jobbers, warehouse distributors, retailers, manufacturers, manufacturer representatives, and program groups. CAWA provides education, legislative, regulatory, and business support to the industry and its membership. It is one of the largest trade associations of its kind in the United States and recognized as a leader in the automotive aftermarket industry.

For more information about the Margin Tax Initiative visit www.cawa.org or contact Nevada Legislative Advocate David Brown at dbrown@wmb-law.net or 702.933.0778.

The measure was initiated by the Nevada AFL-CIO and the Nevada State Education Association, the state affiliate of the National Education Association. However, Executive Secretary Treasurer Danny Thompson of the AFL-CIO, despite giving his prior support, criticized the plan, saying he supports a smaller margin tax of 0.8 percent. The Nevada AFL-CIO decided to hold a vote in May 2014 as to whether to support the initiative. On May 2, 2014, the AFL-CIO officially voted to oppose the measure.