Nevada Business Tax Update: Commerce Tax
If you have a business in Nevada, you should have received a notice recently from the Nevada Department of Taxation regarding the Commerce Tax that went into effect July 1, 2015.
- The Commerce Tax is a gross revenue tax on each business in this state whose Nevada gross revenue in a fiscal year exceeds $4,000,000.
- The Fiscal Year started on July 1st, 2015
- This tax is imposed on any business entity engaged in an activity with the object of gain, benefit, advantage, either direct or indirect, to any person or governmental entity.
- The tax is collected annually by the Department of Taxation with the first return and payment due August 15, 2016 for July 1, 2015- June 30, 2016.
- All Businesses are required to file to Commerce Tax Return From annually.
- The tax is based on Nevada Gross Revenue as defined in Section 8 of Senate Bill 483 pursuant to section 22, and may include various adjustments to that amount pursuant to section 21 of the bill to the extent they are adjustment for you business in Nevada.
- The rate is based on the industry in which the business entity is primarily engaged based on a company’s NAICS code.
- Businesses subject to the Commerce Tax will be entitled to a credit toward their Modified Business Tax liability equal to 50% of their Commerce Tax liability beginning the first quarter after the first payment of the Commerce Tax.
- The credit toward the MBT may be used only for four quarters after the Commerce Tax was paid.
If your business is registered with the Department of Taxation you will receive notices and information regarding industry classification and filing directions.
If you currently are not registered, after January 1, 2016 you may file at www.nevadatax.nv.gov
If you have any questions or concerns call the Nevada Tax Department 866-962-3707 or find more information at http://tax.nv.gov/
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