Las Vegas Review-Journal

Nevada sues Tesla over unpaid unemployme­nt taxes

Company says it settled debt it owed

- By Colton Lochhead Las Vegas Review-journal

Tesla Motors owed Nevada more than $650,000 in unpaid unemployme­nt taxes, according to judgment filed Monday in Clark County.

The filing was made by the state of Nevada, the Department of Employment, Training and Rehabilita­tion and the Employment Security Division. The state says that Tesla has been delinquent on its last two unemployme­nt insurance tax payments to the state, and with interest added on owes $654,504.35. Tesla said it made the payment on Tuesday morning.

“This judgment is the result of a clerical error, and we have processed this payment today to reflect the latest unemployme­nt insurance contributi­on rates,” Tesla said in a statement. “Over the past 18 months, Tesla has already paid over $3.3 million in unemployme­nt taxes to Nevada.”

In 2014, Nevada approved

$1.3 billion in tax incentives for the tech giant known for building electric vehicles to build a 5.8 million square-foot factory outside of Reno — which came to be known as Gigafactor­y 1 — to produce lithium-ion batteries.

That factory employs more than 7,000 workers, according to the company.

Rosa Mendez, spokeswoma­n for the Nevada Department of Employment, Training and Rehabilita­tion, said the judgment is a formal part in the process the state takes against any employer that fails to make their unemployme­nt insurance tax payments.

“This is standard procedure. We do this with all employers,” Mendez said.

Asked whether these delinquent payments would put Tesla’s tax-incentives at risk, Paul Anderson, executive director of GOED, said “there is no immediate impact.”

Contact Capital Bureau Chief Colton Lochhead at clochhead@ reviewjour­nal.com. Follow @ Coltonloch­head on Twitter.

 ?? Sean Whaley ?? Las Vegas Review-journal Capital Bureau Nevada officials said that Tesla Motors has been delinquent on its last two unemployme­nt insurance tax payments to the state, and with interest added on owes $654,504.35. Tesla said it made the payment on Tuesday morning.
Sean Whaley Las Vegas Review-journal Capital Bureau Nevada officials said that Tesla Motors has been delinquent on its last two unemployme­nt insurance tax payments to the state, and with interest added on owes $654,504.35. Tesla said it made the payment on Tuesday morning.

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