Nevada Commerce Tax
The Commerce Tax is an annual tax imposed on the Nevada gross revenue of each business entity engaged in business in the state. For purposes of this tax, a business entity also includes any person engaging in business in Nevada, which would include anyone receiving trade or business income, rental income, or farming income within Nevada, whether within a business or personally. The Nevada Commerce Tax filing deadline is August 15th, 2016 for the fiscal year beginning July 1, 2015 and ending on June 30, 2016.
Each business entity subject to the tax must file a return; however, there is no tax liability unless Nevada source gross revenue in the taxable fiscal year exceeds $4,000,000. If you are under the gross revenue threshold, there is a simplified “check the box” method available for completing the return. If gross revenue exceeds $4,000,000, the Nevada source gross revenue must be determined to calculate the amount subject to the Commerce Tax, if any, based on a specific industry code (NAICS code).
The Nevada Department of Taxation has been mailing out welcome letters to businesses with information regarding the filing requirements of the Commerce Tax. This welcome letter contains a pre-approved access code to enroll in the Nevada Tax Center system, where this return can be submitted electronically. The return may also be paper filed.
If you did not receive a welcome letter and are required to submit a return, a nexus questionnaire can be submitted to the Department of Taxation for registration, which is available on the Department’s website. A taxpayer ID will be assigned to you as a result of registration, which is needed to file the Commerce Tax return.
Please contact your advisor with KBCA, LLC at (775) 885-8847 if you have any questions about the Commerce Tax or its applicability to you.