Nevada Enacts Annual Commerce Tax (Summary)

July 14, 2015

On June 8, 2015, Nevada Governor Brian Sandoval signed a bill that enacts an annual commerce tax on businesses engaged in business in Nevada.  This bill is effective July 1, 2015 for any business entity engaged in business in Nevada whose Nevada gross revenue for the fiscal year exceeds $4 million.

Every business entity engaged in Nevada during a taxable year, on or before the 45th day immediately following the end of the taxable year, must file with the Department of Revenue a report as determined by the DOR.  The DOR may extend the filing of the report not more than 30 days past the time for a business entity to pay the commerce tax.  If the commerce tax is paid during the period, then no penalty or late charge will be imposed, but the business entity will be required to pay interest at a rate of 0.75% per month on the amount due.

A business entity is allowed, but not limited to, deducting the following amounts in computing the commerce tax:

  • Any gross revenue Nevada is prohibited from taxing;
  • Any gross revenue attributable to dividends and interest from any bonds or securities of the Federal Government, State of Nevada, or a political subdivision of the state; and
  • If a business entity is required to pay a license fee pursuant to NRS 463.370, the gross receipts used to determine that amount is deductible.

The tax rates range from 0.051% to 0.331%. 

For more information and to see the bill, click here.

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