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(Princess Sea Industries, one of the parties involved in the case, was Plankinton's company that owned the Chicken Ranch.) In July 2007, the law was overturned by a U. District judge as "overly broad", and advertising in Las Vegas started soon after.While brothels and prostitutes are subject to federal income tax and also pay local fees, Nevada has no state income tax, and brothels are exempt from the state entertainment tax and do not pay any other state taxes.
Licensed prostitutes must be at least 21 years old, except in Storey County and Lyon County (where the minimum age is 18).In some locales, there exist multi-unit complexes of several separate brothels run by the same owner.Examples of this include "The Line" in Winnemucca, Mustang Ranch, in Storey County.The legendary Mustang Ranch operated from 1971 through 1999, when it was forfeited to the federal government following a series of convictions for tax fraud, racketeering, and other crimes.Nevada law requires that registered brothel prostitutes be tested weekly (by a cervical specimen) for gonorrhea and Chlamydia trachomatis, and monthly for HIV and syphilis; furthermore, condoms are mandatory for all oral sex and sexual intercourse.The state of Nevada is the only jurisdiction in the United States where prostitution is permitted.
Strictly regulated brothels operate legally in isolated rural areas, away from the majority of Nevada's population.
Brothel owners may be held liable if customers become infected with HIV after a prostitute has tested positive for the virus.
Nevada has laws against engaging in prostitution outside of licensed brothels, against encouraging others to become prostitutes, and against living off the proceeds of a prostitute. District Judge James Mahan voided the state ban on advertising by legal brothels on grounds the state did not offer any compelling interest in support of the policy, but the U. FN#14 In June 2009, then-Nevada Governor Jim Gibbons signed the most stringent punishments nationwide for child prostitution and pandering.
The rest of Nevada's counties are permitted by state law to license brothels, but only eight counties have done so.
As of December 2017, there are 21 brothels in Nevada.
In 2005, brothel owners lobbied to be taxed in order to increase the legitimacy of the business, but the legislature declined.