Memo: NSEA Supports Assembly Bill 363

5.28.21 Memo

NSEA supports AB363 to ensure short-term rentals are subject to taxes on transient lodging and to require facilitators like Airbnb or VRBO to collect and remit required taxes.

Educators across the state and inside the Legislature have been wearing “Better Than 48” stickers as a reminder that Nevada ranks 48th among states in per-pupil education funding. While there has been significant effort put into doing better in education funding, Nevada’s current tax revenue has limited what is possible.

Meanwhile, the rapid growth of short-term rentals has not only impacted communities and housing affordability, but it has also has gone largely unregulated with significant tax avoidance and evasion. AB363 brings these necessary regulations, while also providing the state with much-needed revenue by requiring facilitators of short-term rentals to collect and remit taxes.

In February and again on Monday, educators in red convened in Carson City, lining the street and lobbying in this building asking you to dig deep to address our budget challenges.

After sustaining difficult cuts in the 31st Special Session last summer, K12 public education is threatened this session with difficult general fund cuts. This includes a proposed $33M cut to the Read by Grade 3 program, which provides critical early literacy supports, and $156M in proposed cuts to class size reduction, despite already having the largest class sizes in the nation. Emergency assistance from the American Rescue Plan will certainly help schools address pandemic-related issues, but these funds are one-time and will expire in 2023. Ranking near the bottom of states in per-pupil funding, Nevada’s public schools and other vital services deserve new and sustained revenue, not just continued austerity.

Meanwhile, the rapid growth of short-term rentals has not only impacted communities and housing affordability, it has also gone largely unregulated with significant tax avoidance and evasion. AB363 brings this necessary regulation, while also providing the state with much-needed revenue by requiring facilitators of short-term rentals to collect and remit taxes.