April 2025
The Hidden Costs Driving Up Prices and Putting Retailers at Risk—What Nevada’s Legislature Can Do
W
ALK INTO ANY STORE IN NEVADA TODAY, AND you’ll notice a familiar trend: higher prices, fewer employees, and shelves that aren’t as full. Behind the scenes, retailers are battling hidden costs that quietly drive up prices and make it harder to stay in business. It’s not just inflation— it’s regulatory burdens, licensing fees, and rising insurance costs that threaten their survival. Retailers operate on thin margins, and growing operational expenses— driven by supply chain disruptions and government policies—are making it harder to keep prices stable. When shoppers cut back, it creates a cycle of lower revenue, job losses, and fewer choices for Nevada consumers. The challenges businesses face today require immediate attention, particularly from lawmakers who can implement policies that support growth and competitiveness.
By Mary Lau, RAN CEO
Mary Lau THE COST NO ONE TALKS ABOUT Beyond rent and payroll, retailers face many hidden costs that shrink their bottom line: l Regulatory Compliance Costs – Nevada businesses must pay an annual State Business License Fee of $200 (or $500 for corporations), plus LLC formation costs of $425 and annual renewal fees of $350. These costs divert resources from hiring, expanding, and improving customer service. l Unnecessary Business Fees – Local business licenses range from $25 to $5,000 depending on the
county. Retailers also must pay zoning approval fees and industry-specific permits, such as health permits for food service businesses ($200–$1,000 annually) and occupational licenses that vary by profession. These fees add up, making it harder to remain competitive. l Business Taxes That Cut Into Profits – Nevada is business-friendly, but taxes still add up. The Modified Business Tax (MBT) imposes a 1.17% tax on gross wages, impacting businesses that hire employees. Continued on page 2
INSIDE Common Sense Legislating in Uncertain Economic Times........................3 PBM Reform..............................4 The Cost of Convenience: How Payment Processing Fees Inflate Consumer Prices.........................................5 Revenue Committees...............6 Judiciary Committees..............7 Nevada News............................8
National News.....................9