Nevada is looking at a $704 million dollar deficit and now has to find new ways to make up for the lost revenue. Nevada has no state income tax and sales tax revenues off tourism has been it major revenue source. Now it sees a new source to hit
Nevada legislators are calling for taxes on its legal brothels. Nevada is the only state in the Union which allows prostitution. Currently, prostitutes only have to worry about federal and county taxes.
If the Governor's plan passes, they would see a 7.3 percent tax. An estimated 365,000 sex acts occur in Nevada's 28 brothels a year. Opponents of prostitution say such a tax sanctions these acts. Brothel owners and prostitutes call it an unfair tax.