The Nevada business tax landscape has changed. Effective July 1, 2015, Nevada SB483 imposes an annual commerce tax on business entities engaged in business in Nevada, including limited liability companies (LLC), partnerships, limited liability partnerships (LLP), S corporations, C corporations, and individuals engaged in business and filing Schedule C, Schedule E (Part 1) or Schedule F with their federal tax returns.
The tax base is calculated as gross revenue minus certain deductions and exclusions. The tax is imposed on every business whose Nevada gross revenue exceeds $4 million annually. The tax year for the commerce tax is July 1 to June 30. Calendar-year and fiscal-year taxpayers, other than those with June fiscal year ends, must adjust their reporting to conform to the commerce tax filing requirements. The commerce tax has 27 business categories that determine an entity’s tax rate. The tax rates vary by business category and range from 0.051% to 0.331% and are determined based on the business entity’s North American Industry Classification (NAICS) code.
All business entities engaged in business in Nevada are required to file the commerce tax return whether or not tax is due. However, business entities with less than $4 million of Nevada gross receipts can file using the simplified reporting method. The initial commerce tax return is due on August 15, 2016. Business entities may request a 30 day extension to file and pay the tax.