On June 9, 2015, Nevada Senate Bill 483 was signed into law. The law, which went into effect on July 1, 2015, created the Nevada Commerce Tax. The first reporting year began on July 1, 2015 and ended June 30, 2016. All business entities must file with the Nevada Department of Taxation by August 15, 2016. You can file either by mail or online at [click here]. If you are the owner of a business entity and have a Nevada Business License, the Secretary of State has forwarded your information to the Department of Taxation and you are pre-enlisted for the Commerce Tax. If not already received, you will shortly receive a “Welcome Letter” from the Department of Taxation with directions on supplying the further information expected to finish your Commerce Tax enrollment.
On the off chance you don’t have a Nevada Business License yet but do have income subject to Commerce Tax reporting, (for example, (i) rental income, (ii) income from providing individual services to which you don’t receive a Form W-2, and regardless of whether you get a federal Form 1099, or (iii) from a little low maintenance business, then you are required to register for the tax by completing the Nevada Commerce Tax Registration Form for Business Entities [click here].
The Department of Taxation gave welcome relief to smaller organizations with incomes under $4 million. Such organizations, while not incurring tax liability, must still file a Commerce Tax return. The return is filed simply by checking the box at the top of the form declaring that their income is under $4 million, and you won’t be required to complete the remainder of the form.
It’s essential to remember that a business entity includes individuals that receive any measure of “business income.” The Department of Taxation has distributed “Business Tax FAQs” [click here] and “Trade Tax Registration Process Informational Chart” [click here] that give great clarifications of who and what is liable to recording a Commerce Tax Return, and the procedure for registering for the tax.
If you have any questions regarding the Commerce Tax and how you may be affected, please contact Dave Gorka, paralegal at Black & LoBello.