Link HT: TaxProf
And even brothel owners who support the idea of being taxed by the state are not as worried as Mr. Flint is that the Legislature might ban the business. James Davis, owner of the Shady Lady Ranch in Scotty’s Junction, said legislators from the smaller counties would never allow the state to eliminate one of their few reliable sources of local tax revenue.
Ms. Buckley said she suspected that Mr. Flint’s motive was to first have the industry taxed by the state and then build a case for legalizing it in the larger counties. And Mr. Flint acknowledged that he hoped he could show the Legislature how much money the state is losing by not regulating and taxing the booming illegal prostitution industry in Las Vegas. (The closest legal brothels to the Strip are more than 60 miles away in Nye County.)