Governor Sandoval signed legislation enacting a commerce tax based on gross revenue assigned to the state of Nevada. This annually collected tax applies to entities engaged in business in Nevada who have over $4 million of Nevada gross revenue in the fiscal year of July 1st through June 30th.
Specific rules apply to the assignment of gross revenue to Nevada and the commerce tax rate varies depending on the industry in which the entity is primarily engaged. A taxpayer is allowed to take a credit against modified business tax, however; the credit is limited to 50% of their commerce tax liability.
The legislation also imposes the modified business tax at the rate of 1.475% for quarterly wages paid in excess of $50,000 and the special 2% rate applicable to financial institutions is extended to businesses subject to tax on the net proceeds from mining. Both of these changes are effective July 1, 2015.
If you are doing business in Nevada, the State and Local Tax (SALT) professionals at RubinBrown can assist you in understanding the impact that these law changes may have on your business.
Any federal tax advice contained in this communication (including any attachments): (i) is intended for your use only; (ii) is based on the accuracy and completeness of the facts you have provided us; and (iii) may not be relied upon to avoid penalties.
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