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What type of fees are needed to register a new business?
A schedule of fees to register a new business are:
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Fee
amount |
| *Application
for Business License and yearly renewal: |
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$200 |
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| Sales
Tax permit per location: |
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$15 |
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| Certificate of Compliance (sale and shipping of liquor in Nevada): |
$50 |
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| Wholesale
Application (to import and/or wholesale of wine liquor or beer): |
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Importer
of wine, beer and spirits: |
$500 |
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Importer
of beer: |
$150 |
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Wholesaler
of wine, beer and spirits: |
$250 |
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Wholesaler
of beer: |
$75 |
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* The Secretary of State's office will administer all State Business Licenses effective October 1, 2009. Anyone registering for a Business License after this date should visit the Secretary of State.
What is is a Federal Identification number, and how do I obtain one?  
A Federal Identification Number (FID), also known as a Employer Identification Number (EIN) is issued by the Internal Revenue Service and is used to identify a business entity. To obtain a Federal Tax Id please visit the IRS web site.
What is the fee for a Business License??
Pursuant to SB 429, the State Business License Fee and renewal will increase from $100.00 to $200.00 per business effective July 1, 2009, and revert back to $100 effective July 1, 2011. AB146 makes changes to the administration of the State Business License. Effective October 1, 2009, administration of the State Business License will transfer over to the Secretary of State’s Office. Additionally, the definition of “Business” has language that includes any entity organized pursuant to Title 7 whether or not the entity performs a service or engages in a business for profit. Additional information regarding this change will be sent to taxpayers before October 1st.
AB 37 allows for the waiver of the $100 late payment penalty on Businesses License fees if the late payment is the result of circumstances beyond the taxpayer’s control and occurred despite the exercise of ordinary care and without intent. This bill became effective May 6, 2009
Some information about my business has changed since
I first registered with your Department. How do I advise you
of the changes?
A change in the name or physical address of your business, its ownership, or Federal ID number, requires a Nevada Business Registration form to be filled out and submitted. You don't have to come into the office for these types of changes. The form can be downloaded from here. Mail the completed form to your local Taxation office. If your account is a sales tax account, include the required $15.00 per Nevada location processing fee.
If the business phone number or mailing address changes, you can change this information in NevadaTax, the Department of Taxation’s interactive website. NevadaTax is located at www.nevadatax.nv.gov , or you may click on the "File Online" link on the menu located at the top of this page on the left side. There is no fee associated with changing the business phone number or mailing address. Another option is to call your local district office. A tax examiner or revenue officer can update the business phone number or mailing address information without a Registration form or processing fee.
How does one apply for a Nevada Business License?
The Nevada Business Registration form is used to apply for a Nevada Business License, as well as a Sales Tax Permit. To apply you may go to NevadaTax, the Department of Taxation’s interactive website and click on the Nevada Business registration link. NevadaTax is located at www.nevadatax.nv.gov , or you may click on the "File Online" link on the menu located at the top of this page on the left side. Or, you may download the Nevada Business Registration form from here. *The Secretary of State's office will administer all State Business Licenses effective October 1, 2009.
Anyone registering for a Business License after this date should visit the Secretary of State.
I am starting a new business in Nevada. What licenses
does the Department of Taxation require of new businesses?
All businesses that perform a service or engage in a trade for profit are required to obtain a State Business License pursuant to NRS 360.765. The exceptions to this are: a person who operates a business from his home and whose net earnings from that business are not more than 66 2/3 % of the average annual wage as computed for the proceeding calendar year pursuant to chapter 612 of NRS (in 2005 this amount was $22,900); a natural person whose sole business is the rental of four or fewer dwelling units; and a businesses whose primary businesses is to create or produce motion pictures. The State Business License fee is $200.00 a year and is to be renewed yearly. The Secretary of State's office will administer all State Business Licenses effective October 1, 2009. Anyone registering for a Business License after this date should visit the Secretary of State. In
addition, pursuant to NRS 372.220, every business that purchases tangible personal property for storage use or consumption in this State, shall at the time they obtain the State Business License, register with the Department for a sales tax permit if they are retailers, or a use tax permit if they are not. NRS 363A & B impose the Modified Business Tax (MBT) on all Nevada employers . The MBT is based upon the gross payroll of employees working in Nevada for whom the Nevada Unemployment Insurance (UI) is required to be paid. Please contact the Nevada Department of Employment Training & Rehabilitation (DETR) to determine whether the UI is required for your business. Other registration requirements for your particular business may also apply. To register with the Department of Taxation, you may go to NevadaTax, the Department of Taxation’s interactive website and click on the Nevada Business registration link , or you may download the two page application from this web site: the Nevada Business Registration and Supplement Information forms. For information regarding any local licenses that may be required in addition to those issued by the Department of Taxation, you will need to contact the city and county where you wish to operate.
I have changed my mailing address for my business. Do
I have to complete the Nevada Business Registration for this change?
If the business phone number or mailing addresses changes, you can change this information in NevadaTax, the Department of Taxation’s interactive website. NevadaTax is located at www.nevadatax.nv.gov , or you may click on the "File Online" link on the menu located at the top of this page on the left side. There is no fee associated with changing the business phone number or mailing address. Another option is to call your local district office. A tax examiner or revenue officer can update the business phone number or mailing address information without a Registration form or processing fee.
A change in the name or physical address of your business, its ownership, or Federal ID number, requires a Nevada Business Registration form to be filled out and submitted. You don't have to come into the office for these types of changes. You may download and mail the completed form to your local Taxation office. If your account is a sales tax account, include the required $15.00 per Nevada location processing fee.
Closing your account:
If you close or sell your business, you must contact the Department. You can cancel your account by contacting us by phone, written correspondence or visiting us at one of our 5 district offices. However you choose to contact us, certain information will be required in order to expedite the canceling of your account and refund any security deposit or credits to which you may be entitled. It is important to include complete information when notifying us.
The following information should be included:
- Nevada Taxpayer ID Number (TID) of the business to be closed.
- The DBA and location of the business.
- The date the business will be closed or sold.
- The reason you closed the business
- If you sold the business who you sold it to
- What became of the business assets such as equipment or office furniture, or advise if there are no assets. If the assets were sold, please indicate who you sold them to and the sales price.
- What became of any remaining inventory, If there is inventory remaining that you do not intend to resell, you are reminded you must report and pay use tax on the remaining inventory on your final return
- Please include your name and title with the business and a day-time phone number in the event we need to contact you.
- Finally, please provide a mailing address for any refund of security and/or credit you may be entitled t o.
| USE TAX |
 TO TOP |
What is use tax?
Use tax is a tax imposed on tangible personal property used in Nevada on which sales tax has not been paid. Use tax, the counterpart of sales tax, applies to mail order, out-of-state, internet purchases, and other purchases of tangible personal property on which Nevada sales tax has not been paid. Any sales tax legally collected in another state will be applied towards any applicable Nevada use tax. NRS 372.185, NAC 372.055
Why is use tax important?
Nevada use tax is important because it protects Nevada businesses from a competitive disadvantage with out-of-state vendors. If a use tax provision did not exist in Nevada, a Nevada business would automatically be undercut by the out-of-state vendor. Use tax puts in-state and out-of-state businesses on the same competitive footing. Use tax also helps generate the funds needed to provide services such as police and fire protection, road construction and repair, and it funds schools.
Who is liable for use tax?
Any individual, business, corporation, or other entity is liable for use tax, when sales tax is not collected by the seller. Use tax is not just applicable to businesses. Below are examples in which Nevada sales tax is not collected by the seller and therefore, use tax is due from the purchaser.
Examples:
- All purchases of tangible personal property over the Internet, by mail order, or from catalogs are subject to use tax if Nevada sales tax is not charged by the seller and the item is delivered in Nevada.
- A Nevada business orders a computer system from an out-of-state dealer who delivers or ships the system to the Nevada business' address.
- A contractor orders a truckload of sheet rock from an out-of-state vendor who delivers or ships the sheet rock to Nevada for the contractor's construction job in Nevada.
- An out-of-state resident purchases a vehicle, vessel, or aircraft from an out-of-state dealer who delivers the item to Nevada for use in Nevada.
- An individual orders furniture from an out-of-state vendor who delivers or ships the furniture to the Nevada resident's home.
- A Nevada located business orders equipment, reference materials, or office supplies, from an out of state vendor, to be used in Nevada.
- An individual purchases an off-highway vehicle in another state and signs an affidavit in that state affirming that the vehicle will be used and stored in Nevada.
If an out-of-state vendor does not charge Nevada sales tax, should I add it to the invoice or pay it directly to Nevada?
If the vendor does not include the tax on their invoice, do not remit the tax to them. Rather, remit it directly to the department. If you are not registered with the department, you must pay use tax directly to the Department of Taxation using a one-time use tax return, or by letter, in which you state the purchase price, county of delivery, and enclose the payment.
How does the Department of Taxation identify those who have use tax liability?
The Department can identify those who owe use tax by various methods including routine audits, special audits, self-assessment programs, complaints, investigations, and by obtaining lists of out-of-state purchases through the cooperation of taxing authorities in other states. States do share information regarding large purchases shipped or delivered to other states.
I am a contractor bidding a job in Nevada. Are both the materials and labor subject to tax? I am doing this job for a governmental agency. How do I buy my materials tax exempt?
In Nevada, construction contractors are considered the consumers of all materials used in fulfilling a construction contract for improvement to real property. This is the case, regardless of the contractor entering into a contract with an exempt entity. Nevada sales tax exempt status given to governmental, religious, charitable, or educational entities does not extend to contractors or sub-contractors with whom they contract. A construction contractor owes either sales tax or use tax on the cost of the materials used to fulfill a construction contract. If a construction contractor pays sales tax at a rate equal to or greater than Nevada's, no further tax liability exists. The Department will allow a credit toward the amount due in this state in an amount equal to sales tax legitimately paid to a state or local government outside of Nevada. If sales tax is paid at a rate less than Nevada's, the contractor owes use tax on the difference between the two rates. Nevada Revised Statute 360 requires all businesses, operating in Nevada to have a State Business License issued by the Department of Taxation and be registered for either sales or use Tax.
Is use tax something new?
No. Although taxpayers are often less familiar with use tax than with sales tax, Nevada first imposed a use tax in 1955. All states which impose a sales tax also impose a companion use tax.
How do I report and pay use tax?
Use tax liability may be reported on a one-time return available at any Department of Taxation office. Those who regularly incur use tax liability should register and obtain a consumer's use tax certificate if they don’t already have a sales permit. There is no charge for a consumer's certificate. Use tax liability may also be satisfied by sending a letter or invoice stating the purchase price and submitting the use tax payment.
What if use tax is not paid?
The Department of Taxation may issue an assessment for use tax liability. Interest will be imposed at the rate of 1% per month from the date the tax was due and a penalty of 10 % will also be assessed in addition to the tax. If there is evidence of intent to evade use tax, a 25% penalty can be assessed. If the intent to evade use tax pertains to a vehicle, vessel, or aircraft, a 300% penalty can be assessed. Further, by statute, the department is required to go back eight years (if the business has been in existence that long) and determine any additional use tax liability that may be due. |
| MODIFIED BUSINESS TAX |
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Q. What kind of tax is this?
A. The Modified Business Tax is a quarterly payroll tax that is based on gross wages.
Q. What is the tax rate?
A. The tax rate for General Business employers from October 1, 2003 through June 30, 2004 is 0.70% (0.007) of the gross wages; the tax rate from July 1, 2004 through June 30, 2005 is 0.65% (0.0065): and the tax rate after July 1, 2005 is 0.63% (0.0063). For financial institutions the rate is and has always been 2% of the gross wages.
SB429 changes the tax rate for MBT as well as creating a tiered system. If the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $62,500 for the calendar quarter, the amount of tax is 0.5% of the sum of those wages (0.005). If the sum of all the wages paid by the employer exceeds $62,500 for the calendar quarter, the tax is $312.50 plus 1.17% of the amount the wage exceeds $62,500. For example: if the sum of all wages for the 12/09 quarter is $101,000. The tax is $312.50 plus $450.45 (0.0117 x $38,500 which is the amount exceeding $62,500) = total tax due of $762.95. These changes are effective July 1, 2009 and expire June 30, 2011. No changes were made to the definition of Financial Institutions or the tax rate for Financial Institutions which remains at 2%.
Q. Where do I have to register for this tax?
A. When you register with the Nevada Employment Security Division (ESD) for Unemployment Compensation for your employees you are automatically registered with the Department of Taxation for Modified Business Tax. You will start receiving tax returns from the Department of Taxation. They will be sent to you at the same address you have registered with the Employment Security Division. If you would like your Modified Business Tax returns to be sent to a different address you must notify the Department of Taxation by phone or in writing.
Q. Who do I pay this tax to?
A. This tax is paid to the Department of Taxation.
Q. Do I still pay the unemployment compensation contributions to the Employment Security Division?
A. Yes.
Q. What are gross wages?
A. Gross wages are the total wages paid by the employer during the calendar quarter. This amount should be the same figure as reported on Line 3 of ESD Form NUCS 4072 and should include reported tips.
Q. Is there a cap on the gross wages?
A. No, there is no cap, or limit, on the gross wages.
Q. When is the tax due?
A. Tax for each calendar quarter is due on the last day of the quarter and is to be paid on or before the last day of the month following the quarter. For example, the tax return and remittance for October 1, 2006 through December 31, 2006 was due on or before January 31, 2007. A return must be filed for each period even if no gross wages were paid during the period.
Q. What entities qualify as financial institutions?
A. An institution licensed, registered or otherwise authorized to do business in this State pursuant to the provisions of chapter 604, 645B, or 645E, of NRS or title 55 or 56 of NRS or a similar institution chartered or licensed pursuant to federal law or doing business in this State. It also includes a business primarily engaged in other financial activities involving securities, commodity exchange, bonds, investments, management of money, loan, or credit card processing, among others. The term does not include a credit union organized under the provisions of chapter 678 of NRS or the Federal Credit Union Act and effective July 1, 2005, it does not credit reporting companies, collection agencies, pawnbrokers, companies that extend credit for their own goods and services only, and agricultural credit associations.
Q. How will it be determined if a business qualifies as a financial Institution?
A. The Department shall refer to the 4 digit SIC code or the equivalent NAICS code.
Q. How do I dispute my SIC or NAICS classification of record?
A dispute may be made by filing a petition with the Department. The petition must include a description of the business, a statement of all the grounds upon which the person challenges the classification, and such financial records and documents as may be necessary to substantiate the claim.
Q. If I do not own a business but I hire domestic help in my home am I required to pay this tax?
A. Prior to July 1, 2005 if you were required to report their wages to ESD on Form NUCS 4072, you were required to pay this tax on their gross wages as well. Effective July 1, 2005 you are considered to be a consumer of service only and not required to pay this tax on their wages, even if the wages are over $1000 a calendar quarter.
Q. Are there any allowable deductions from gross wages?
A. Yes. There is a deduction for qualified health insurance/health benefit plans for employees paid by the employer.
Q. Are employees’ dependents included in the allowable deduction?
A. Yes, if the premiums, claims, etc. are paid by the employer.
Q. Are employee dental and vision insurance premiums allowable health insurance/health benefit plan?
A. Yes, as long as they are paid by the employer.
Q. My company is self-insured; does that qualify for the deduction?
A Yes. There is a provision for amounts paid for claims, direct administrative services costs, and any premiums paid for individual or aggregate stop-loss insurance coverage.
Q. What about amounts paid by an employer to a Taft-Hartley Trust for participation in an employee welfare benefit plan?
A. These amounts would also qualify for the deduction.
Q. What if the amounts paid for premiums, claims, etc., exceed the amount of gross wages for the quarter?
A. The excess amount may be carried forward to be applied as an offset to the gross wages in the following quarter.
Q. Do amounts paid for health care or premiums paid for insurance for any industrial injury or occupational diseases qualify for the deduction?
A.No.
Q. Can I deduct these taxes from the employee’s wages?
A. No.
Q. What if I, as an employer, pay $300 per employee per quarter for health insurance premiums, and the employee pays $100 per quarter for a total of $400 paid to the insurance company. How much can I deduct from gross wages?
A. You can deduct $300 per employee per quarter.
Q. What if I make a mistake - how do I amend my return?
A. Take a copy of your original return and write the word “AMENDED” in black ink in the upper right corner of return. Line-through the original figures in black, LEAVING THE ORGINAL FIGURES LEGIBLE. Enter corrected figures, in black, next to or above lined-through figures. Enter amount of credit claimed (if any) or amount due. Include a WRITTEN EXPLANATION AND DOCUMENTATION (credit memos, exemption certificates, adjustments to gross wages or health deductions, etc.) substantiating the basis of the amendment(s). If the amended return results in a credit, a credit will be issued to satisfy current/future liabilities unless a refund is specifically requested. If additional tax is due, please remit payment along with applicable penalty and interest. Please note that the requirements for documentation to be attached to amendments is unique to this particular tax and differs from the requirements of other taxes under Title 32.
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| EXCISE |
TO TOP |
Alcohol
How do I sell my alcoholic beverage products
in the state of Nevada?
E mail your complete name and mailing
address and a certificate of compliance application packet
will be mailed to you.
What do I need to do to get a liquor license to sell
liquor at my bar?
Contact the city or county in which the bar is located to
obtain a retail liquor license.
Insurance Premium
My Insurance company sent me my renewal
notice. My annuity statement indicates I am to
pay a tax on my annuity. I have never heard of this
before, is this correct?
NRS 680B.027 requires insurers to pay a 3.5% tax on net
direct premiums and net direct considerations written in Nevada. The statute does not prevent the insurer from passing this
cost on to their customers.
Estate
Who must file for estate taxes in Nevada?
Nevada filing is required in accordance with Nevada law NRS 375.A for
any decedent who has property located in Nevada at the time
of death and whose estate value meets or exceeds the level
requiring a Federal Estate Tax return.
The Credit allowable against the federal estate tax for the payment of State death taxes is being phased out by the IRS and will no longer appy on deaths occurring after December 31, 2004. Nevada is based solely on this credit and Nevada does not require filing for decedants whose date of death was January 1, 2005 or after. If the IRS reinstates the Death Tax Credit, Nevada will require filing at that time.
What is the amount of estate tax due to Nevada?
The Nevada Estate Tax shall not exceed the maximum credit allowable against a Federal Estate Tax return. The Nevada Estate Tax due will be reduced by applicable credit(s) allowed on the Federal return for amounts paid to another state.
When, what and how do I need to file?
The due date for submitting the Nevada Estate tax return, Federal Form 706, is within 9 months after the date of the decedent's death. If an extension
of time for filing is being requested from the IRS, a copy of Federal Form 4768 must be filed within 9 months after the date of the decedent's death. Once the IRS has approved the extension, Form 4768, a copy of the approval must be filed.
A copy of the Federal Form 706 and if applicable, the approved Federal Form 4768 must be filed.
Mail Nevada Estate tax filings and payments to the Carson City Office. The address is on the home page. Please make checks payable to the Nevada Department of Taxation and write the social security number and
name of the decedent on the face of the
check.
For complete instructions and general information on Nevada Estate Tax, go to the home page and click on Common Forms, click on Excise Tax Forms, click on Estate Tax.
How do I amend my estate tax return?
If for any reason the Federal tax return must be adjusted
or amended, an amended Nevada filing is required. The
amended Nevada filing is due at the time the Federal amended
return is filed. A copy of the adjusted or amended Federal
filing, with the appropriate reconciliation must be filed.
I can't find any forms for Nevada filing.
Nevada utilizes a copy of the Federal form 706 for filing
and Federal form 4768 for extension filing(NRS375A.150, NRS375A.155).
Cigarettes and Other Tobacco Products
What procedures are needed to sell and or distribute
tobacco products in Nevada? Are there state tobacco
taxes? If so at what rate are they applied?
NRS requires any person intending to sell other tobacco products (any tobacco product other than cigarettes) in Nevada to first acquire a seller's permit. To become a wholesaler of other tobacco products (OTP), an OTP License is required in addition to a seller's permit. A person may be licensed as a wholesale dealer and as a retailer. No fee or security is required to obtain an OTP License. Annual renewal is not required. A 30% excise tax is due on the wholesale price of OTP merchandise when the merchandise is sold or distributed. Wholesale price of OTP is the price in which the manufacturer sells a product made from tobacco other than cigarettes to a wholesale dealer before any discount or other reduction is made. A wholesale dealer must submit a monthly return due on or before the 20th of the following month of purchases, along with excise tax due. A return is due every month whether or not purchases were made. Pursuant to NRS 370.465 a list of all OTP purchases for the month, copies of invoices for purchases made directly from the manufacturer or wholesale dealer not licensed in Nevada and excise tax due are required with the monthly Other Tobacco Products return. The wholesale dealer is entitled to retain .5% of the taxes collected to cover the cost of collecting and administering the taxes. A Nevada licensed wholesaler may purchase OTP directly from a manufacturer or from another wholesaler who is not licensed with Nevada. A retailer may only purchase OTP from a Nevada licensed wholesaler.
NRS requires any person intending to sell cigarettes in Nevada to first acquire a seller's permit. If a person wants to become a wholesaler of cigarettes a Nevada Cigarette Wholesale Dealers License is also required along with a seller’s permit. The city or county clerk in the municipality where business is to be conducted should be contacted to fulfill any local licensing requirements. The minimum security to be placed is $1,000.00. Wholesalers of cigarettes must have on hand at all times a cigarette inventory of $10,000.00. The initial fee is $150.00 but is pro-rated at $37.50 per each remaining calendar quarter, not to be less than $37.50
|
| PROPERTY |
TO TOP |
| Who do I talk to about my property taxes?
Local Property Taxes are billed by your local county assessor
and or treasurer. Questions regarding billings should
by addressed to your local county assessor/treasurer. The name, address, parcel number and telephone number should
be on the bottom portion of your bill, or can be found under
the publications section of this site.
My leasing company just charged me tax on an amount
charged for "personal property tax".
Is that correct?
The fee/charge for access to an airport and the charge
for reimbursement of property taxes will not be considered
part of the gross lease/rental charge if separately stated. NRS
372.025 and NAC 372.080(11)
|
| SALES TAX |
Are delivery charges taxable?
Any charges for freight, transportation or delivery in connection with the sale of tangible personal property that are separately stated on a customer invoice are NOT taxable pursuant to AB403. (Effective 05/22/09) If they are not separately stated they are taxable.
Handling, packaging, and crating are still taxable even if separately stated. Prior to 05/22/09 charges for freight, transportation or delivery in connection with the sale of tangible personal property was taxable.
What is a "Resale Certificate” and how is it used?
If tangible personal property is being purchased by somebody who is going to resell the product at retail, or incorporate the property into a final product for sale or resale, that purchaser can provide the vendor with a "resale certificate". The certificate is signed and dated by the purchaser, and it represents the purchaser's assurance that the property is for eventual resale and the tax will be charged then. It is the retailer's responsibility to use reasonable care when exempting a transaction from Sales Tax based on a resale certificate. Technically known as "good faith acceptance", this means that it must be reasonable to assume the purchaser is in the business of selling the type of products being purchased. Resale certificates should be updated every two to three years.
How do I know what is taxable?
Nearly all tangible personal property transferred for value is taxable. This includes property purchased for lease or rent. Most goods, wares, and merchandise are taxable in Nevada. Services associated with the sale of tangible personal property may also be taxable. Only installation and repair/reconditioning service is not taxable if it is separately stated on the invoice. Most food purchases of unprepared or uncooked food is not taxable. You may write to the Department of Taxation at any of the District offices about the taxability of a specific item.
Can be included in the price of a purchased item?
Yes. However, it must be specifically and clearly stated that "Nevada Sales Tax is included" in the price paid. A retailer may include the tax in the sales price of an item but if he does so, he shall notify the public by posting a sign which is visible to all customers and states that the Sales Tax is included in the sales price. In the absence of such a notification, the total amount charged to the customer shall be deemed to be the price of the item. NAC 372.760
Is the lease or rental of tangible personal property taxable?
Yes. A Use Tax is due from the lessor on all property put into lease or rental service. An option is given on how to pay this tax. Sales or Use Tax can be paid on the total cost at time of purchase, or Use Tax can be paid on the total lease or rental charges within this State. NRS 372.060, 372.085, 372.105, 372.185 NAC 372.070-372.085
I need a blank Sales Tax return. Where can I find one, and where do I send it when I'm done filling it out?
If you need to file Sales Tax, Use Tax, Modified Business Tax or the Business License fee, you can file these returns electronically after registering to use our interactive website, “NevadaTax”. “NevadaTax” is located at www.nevadatax.nv.gov or you may click on the "File Online" link on the menu located at the top of this page on the left side. If you file using NevadaTax, a link to a pdf copy of the return you filed will be made available to you.
If you prefer to print paper returns and mail them to us, returns are available if you click the “Common Forms” link on the menu located at the top of the page on the left side. The Sales Tax, Use Tax and Modified Business Tax pdf forms will calculate your tax, penalty and interest based on the Period End Date chosen, the amount of Sales, Use or Wages entered, and the Date Paid (this field defaults to today’s date, but can be changed). You may click here to get blank forms from our Forms page.
Another suggestion is that you retain a copy of a blank tax return in your files. Then enter the correct reporting period end date, fill it out, and mail it to the department. Remember, the fact that you did not receive a tax return in the mail is not a valid reason for not filing taxes, or for filing late. If you continually do not receive a return, you should verify your mailing address in NevadaTax or call your local office to confirm your mailing address.
I purchased clay pigeons at retail and was charged Sales Tax, but I wasn't charged Sales Tax for clay pigeons I used at my gun club. Why wasn't I charged for the pigeons at my gun club?
Gun club owners are the consumers of the clay pigeons and have already paid the tax on the clay pigeons and blue rocks furnished to members and patrons in connection with trapshooting and similar sports, even if the charge for the service is measured by the number of clay pigeons or blue rocks used. NRS 372.085, 372.105, 372.185 and NAC 372.250
I am bidding a job in Nevada. Do I charge tax on the total charge for materials and labor?
In Nevada, the taxability of labor varies, depending on the type of labor, and in some instances, how it is billed to the customer. Fabrication labor is subject to Sales/Use Tax. Repair/reconditioning and installation labor is not subject to tax if it is separately stated on the invoice. Nevada Administrative Codes 372.380, 372.390-372.400 and Nevada Revised Statutes 372.025 and 372.065
I would like to remit my sales/use/business tax return and payment via EFT.
Is this option available? How do I sign up?
“NevadaTax” is the Department of Taxation’s interactive website that provides businesses with the ability to view and manage their accounts via the internet. “NevadaTax” is located at www.nevadatax.nv.gov or you may click on the "File Online" link on the menu located at the top of this page on the left side. Using “NevadaTax”, you can file tax returns, make payments, and view financials associated with your Sales and Use Tax account, Modified Business Tax account, and Business License account (until 10/01/09, at which point Business License transfers to Secretary of State). For taxes not listed, the blank forms are available if you click the “Common Forms” link on the menu located at the top of the page on the left side, allowing taxpayers to download, print, manually fill out, and mail or fax the forms back to us.
I am starting a consulting business in Nevada. Is this subject to Sales Tax?
In Nevada, Sales/Use Tax is imposed on the sale, transfer, lease, rental, use, or other consumption of tangible personal property for consideration. Services do not fall under the definition of tangible personal property and are not subject to Sales Tax. The provider of the services has a Use Tax liability on the materials used/consumed in providing the service. Nevada Revised Statute 372.085, 372.105, and 372.185
I was not charged Sales Tax on the haircut I received from my hairdresser at her salon, but was charged tax on a can of hair spray I bought from her. Was I charged correctly?
Yes, in Nevada, tangible personal property for consideration is subject to Sales and Use Tax. Services such as a haircut do not fall under the definition of tangible personal property and therefore are not subject to Sales and Use Tax. Barbers, beauty shop operators, bootblacks, launderers, and cleaners are retailers of supplies or other tangible personal property which they sell to their customers and Sales and Use Tax apply to the sales price of the property sold. NRS 372.085, 372.105, 372.185 and NAC 372.140
I over paid my Sales Tax last month. Where do I get the form to amend my Sales Tax return?
How do I get a refund?
Nevada does not have a specific form to amend your Sales Tax return. You may amend a previously filed Sales/Use Tax return by one of two methods:
Method A-Amend Individual Tax Returns:
1. Copy the Sales/Use Tax return for the period (month/quarter) in which sales/use was originally paid.
2. Write “AMENDED” in black, in the upper right hand corner of the tax return.
3. Line-through original figures for each county in which tax was originally reported, in black, leaving original figures legible.
4. Enter corrected figures, in black next to lined through figures.
5. Indicate amount of credit claimed.
6. Include a written explanation and documentation substantiating the basis of the credit claim.
7. Indicate whether a refund is requested or whether a credit will be used to meet current/future tax liability.
Method B-Spreadsheet to include:
1. Periods (months/quarters) in which tax was originally paid and county in which tax was originally reported.
2. Original tax measure and original amount of tax paid and county in which reported.
3. Corrected tax measure and corrected amount of tax due/credit claimed for each county where tax originally reported.
4. Total amount of tax credit claimed for all periods in all counties.
5. Include a written explanation and documentation substantiating the basis of the credit claim.
6. Indicate whether a refund is requested or whether a credit will be used to meet current/future tax liability.
I will be attending a convention/trade-show in Nevada. I will be selling my product. Do I have to collect Sales Tax?
Any business conducting more than two retail sales of tangible personal property during any twelve-month period must register with the Nevada Department of Taxation to collect and remit Nevada Sales/Use Tax. If this is a one-time event, you are not required to register to collect and remit Nevada Sales/Use Tax. Convention organizers/promoters may provide you with a simplified version of a Nevada Sales/Use Tax return. The organizer/promoter collects the tax due at the end of the convention and remits it directly to the Department. If the convention organizer/promoter does not provide a simplified tax return, you must remit the tax directly to the Department in letter form. The letter must include the name, date and location of the event; the name, address and federal identification number of your business, amount sold and tax collected. Checks must be made payable to the Nevada Department of Taxation. Please mail your letter and payment to Nevada Department of Taxation 1550 College Parkway, Suite 115, Carson City, Nevada 89706. Nevada Revised Statue 372.050, 372.055, 372.060, 372.105 and Nevada Administrative Code 372.180
I will be promoting a convention, trade-show, or one-time event in Nevada. What do I need to do with the Nevada Department of Taxation?
PROMOTERS/ORGANIZERS of one-time events, tradeshows, and conventions should contact the appropriate Department of Taxation office at least two weeks prior to the scheduled event to obtain a promoter instructions, related tax statues, courtesy rate cards and the necessary number of “one-time permits”. (NAC 372.180)
Please note that liquor, cigarettes, and other tobacco products are subject to special laws and regulations in addition to sales and use tax. Please contact the Carson City office if there will be liquor, cigarettes or other tobacco products sold or given away at the tradeshow or convention.
Does Nevada provide for Sales/Use Tax exemptions for non-profit organizations?
Yes, Nevada Revised Statute (NRS) 372.326 provides for an exemption from Sales/Use Tax for non-profit organizations created for religious, charitable, or educational purposes, however, organizations must apply for, and receive approval for, exempt entity status by the Department of Taxation. If an organization qualifies, it will receive a letter from the department stating it is exempt. Organizations are not automatically exempt by their Federal 501(c) (3) status. The Application for Exempt Status is a short, one page form, and can be downloaded. Automatically downloaded with the application are the related statutes that define the requirements for qualification. If approved, an exempt organization must renew its status every five years. Nevada state and local government agencies and agencies of the federal government are exempt by statute (NRS 372.325 & NAC 372.680). An exemption letter from the department is not required. Such entities do not need to apply to the department for an exemption letter. Click here to go to forms to download the application.
My vendors are requesting a copy of my resale certificate.
Where can I get blank resale certificate?
Blank resale certificates can be purchased at most stationery stores. It is important, however, to make sure the form you purchase complies with NAC 372.730, which shows what the form must include. You can also download a blank resale certificate by going to our Forms page.
What is the Sales Tax rate on a new car? I think the dealership undercharged me .
Nevada statutes provide for a "tax credit" based on the trade-in allowance of a used car in connection with the sale of a new car. The following approach is used to calculate the total Nevada Sales Tax due on a new car deal when a trade-in is involved: 1. Multiply the full retail price of the new car (including document, smog and other fees) by the Sales Tax rate applicable in the county of the sale. 2. Multiply the trade-in allowance by the applicable tax rate in the county of sale. 3. Deduct (2) from (1) to arrive at the total amount of tax due. For example, You buy a $15,000 new car and receive $10,000 in trade-in allowance for your old car. The tax would be ($15,000 x 7%) - ($10,000 x 7%) = $350 total Sales Tax due. (Assuming a 7% applicable Sales Tax rate).
I paid Sales Tax for my purchase to another state.
Will I have to pay tax on the same purchase to Nevada?
Nevada does recognize Sales Tax paid to another state, and will credit the amount legitimately paid up to the amount of tax due in Nevada. If tax was paid at a lesser rate than Nevada's, tax is due on the difference between the two rates. NAC 372.055
Are boats, vehicles, aircraft, and off highway vehicles purchased in another state subject to Nevada tax?
They may be. In order to be registered in Nevada, proof that Sales Tax has been paid to Nevada or another state is required on all boats, licensed vehicles (cars, trucks, motorcycles, trailers) aircraft and off highway vehicles. If proof cannot be provided, Use Tax must be paid. Sales Tax legitimately paid to another state is applied as a credit towards Nevada Use Tax due. NAC 372.055, NRS 372.185
Does Nevada offer incentive programs for Sales/Use Tax?
Nevada offers Sales/Use Tax deferral and Sales Tax abatement programs on the purchases of capital equipment for a new or expanding business. All companies interested in these incentive programs can contact The Commission on Economic Development at (775) 687-4325 or at http://www.expand2nevada.com for an application. NRS 372.397, NRS 374.357, NAC 372.040
What are my Sales Tax obligations when I accept one of the new "G SA Smartpay" credit cards used by the Federal Government?
Only those cards that are centrally billed (paid directly by the Federal Government) are tax exempt. To find out how to tell which ones are centrally billed, please go to http://pub.fss.gsa.gov/services/gsa-smartpay for more information.
Don't all companies automatically add Sales Tax to taxable mail order, out-of-state, and telephone purchases?
Not necessarily. Some companies do because they are registered to collect Nevada Sales Tax. If a seller is not registered to collect and remit Nevada Sales Tax, the Nevada purchaser must pay Use Tax directly to the State of Nevada.
Is software, electronic magazines, clipart, program code, or other downloaded material taxable to Nevada residents?
No. Products from the internet, BBS, or other networks downloaded directly onto your computer (home or office) are not subject to Nevada Sales or Use Tax. However, products ordered via the internet and shipped into Nevada are taxable, as well as any software transferred via a disk (floppy, CD-ROM, etc). A box of software or other product shipped to customers in this state is physical, tangible personal property. Electronic download of software and other information is not currently viewed as 'physical'.
I just received a notice to post security from your department. How did the department arrive at the amount that needs to be posted?
A person who obtains a permit to collect Sales Tax shall deposit with the department security in an amount equal to twice the estimated average tax due quarterly, or three times the estimated average tax due monthly if he files monthly returns, but not less than $100.00. Any person who becomes delinquent or files a late return or whose check tendered as payment is dishonored shall deposit additional security with the department. The department shall require a habitually delinquent taxpayer to deposit with the department security in an amount equal to three times the average actual tax due quarterly or five times the average actual tax due monthly. The department will accept cash, time certificates or certificates of deposit that are issued or confirmed by a bank, savings bank or savings and loan association situated in this state, surety bonds executed by an insurance company and irrevocable letters of credit which are issued or confirmed by a bank, savings bank or savings and loan association situated in the State of Nevada upon the conditions prescribed by the department. NRS 372.510, NAC 372.825
My business is located in Carson City where the tax rate is currently 7%, and on my first day of business my register was mis-programmed for 7.25%. Can I keep the excess tax collected?
No. Any over-collection must, if possible, be refunded by the retailer to the person from whom it was collected. Any over-collection that cannot be refunded for any reason must be paid to the department. If a retailer receives notice from the department that they have over collected Sales Tax and a refund must be made, they must use all practical methods to determine the amount to be refunded, and the name and address of the person to whom the refund is to be made. Within 60 days after receiving notice from the department that a refund must be made, they must make an accounting to the department of all refunds paid. The accounting must be accompanied by any supporting documents required by the department. NAC 372.765
Are beer, wine, and liquor subject to Sales Tax?
Sales Tax applies in the retail sales of beer, wine, and liquor to the entire amount charged for the product, including the amount of all other state and federal taxes imposed on the product. NAC 372.150
Where do I find my Sales/Use Tax Exemption number?
The Department has an approval process to review organizations applying for the religious/charitable/educational Sales/Use Tax exemption program. Upon approval, an exemption letter on Department letterhead with an exemption number will be issued to the qualifying organization. NRS 372.3261
Does Nevada have a voluntary disclosure program for Sales/Use Tax or Modified Business Tax?
Yes, In accordance with NAC 360.440 through 360.448, a taxpayer may apply for Voluntary Disclosure (VD) with the Department which may result in waiver of penalty and interest. The Nevada Tax Commission has the final approval authority for the waiver. The taxpayer or his representative must file with the Department an application for voluntary disclosure before the Department has initiated an audit or investigation of the taxpayer. If a taxpayer is registered for one tax type and voluntarily discloses that they should have been registered for another tax type, they can qualify for waiver of the penalty and interest pertaining to the newly disclosed tax only. You can go to the Forms page to download the application.
Is the gas to heat my home taxable?
Domestic fuels are exempt from Sales/Use Tax in Nevada. The gross receipts from the sale, furnishing or service of, and the storage, use or other consumption of, any matter used to produce domestic heat by burning, without limitation, wood, coal, petroleum and gas are exempt from Sales and Use Tax in Nevada. NRS 372.300
Is the sale of coins or uncanceled stamps subject to Sales Tax in Nevada?
The sale of postage stamps through vending machines is not subject to Sales Tax because such stamps represent an intangible right to receive services and are not tangible personal property. The tax applies to sales of coins and uncanceled stamps at a premium price (exceeds 50% of the face value) for purposes other than use as a medium of exchange or postage. The tax does not apply to sales of coins or uncanceled stamps, even though sold at a premium price, if the purpose of the use of the coins or stamps is as a medium of exchange or postage. NRS 372.085 and NAC 372.170
I purchased a boat and trailer from an out-of-state dealer. Do I have to pay Nevada Sales Tax to operate it on a Nevada lake?
Nevada does honor Sales Tax paid to another state in an amount equivalent to Nevada's. If you purchased a boat/trailer from an out-of-state dealer and paid Sales Tax to that state at an equivalent rate, your Sales Tax obligation has been met. If you paid Sales Tax at a lesser rate to another state, you will need to pay the difference directly to Nevada. If you did not pay Sales Tax at the point of purchase, then Nevada Sales/Use Tax is owed on the purchase price, including all accessories. Please, bring all pertinent documentation to the Department of Taxation (Department) for tax clearance. After receiving proof of tax paid from the Department, you may then proceed to the Department of Motor Vehicles and the Division of Wildlife to complete the required registration. NAC 372.055
I filed a Chp7 bankruptcy, and included my business. The bankruptcy trustee took my non-exempt assets and paid most of the bills. Now the Department says I still owe the Sales Tax. I thought this was uncollectible after I received my bankruptcy discharge. Why do I still owe you money?
The trustee is appointed to liquidate your nonexempt assets and pay your creditors according to the priority set by the bankruptcy code. Usually there are insufficient funds to cover your debts, which is why you filed for bankruptcy protection initially. A discharge is granted to proficient you relief from your debts. However, a discharge only cancels those types of debts which are entitled to a discharge under the bankruptcy code. Often people are surprised to find that certain types of debts are exempt from the discharge and therefore collectible after the discharge is granted. Sales Tax is exempt from the discharge granted in bankruptcy because it is a priority tax debt. Your liability for priority taxes is never canceled under a Chapter 7 discharge, because priority taxes (including penalty and interest) are a non dischargeable debt under 11 U.S.C. sec 523 (a)(1)(A). This gives the Department the right to pursue collection of this debt once your discharge is granted. If you filed a Chapter 13 debt adjustment or Chapter 11 reorganization, you would pay your priority taxes through your bankruptcy plan. If your bankruptcy was dismissed or converted to a chapter 7, you would have to make arrangements with the Department to pay your remaining tax balance. You should discuss any legal issues you may have with your attorney.
Is a wholesale distributor of exempt food products require to register as a vendor?
Yes, all persons making sales in the State of Nevada must be registered with the Nevada Department of Taxation for a Sales/Use Tax permit whether the product being sold is exempt or not. A seller is defined in NRS 372.070. In addition, any person that performs a service or engages in a trade for profit in Nevada must have a State Business License issued by the Department of Taxation. The fee for a Sate Business License is $200 a year. Note that the Business License will transfer to the Secretary of State effective 10/01/09. Anyone registering for Business License on or after this date should visit the Secretary of State.
This is in addition to any license to conduct business that must be obtained from the local jurisdiction in which the business is being conducted NRS 360.780
My wife would like to buy her father's car. (The car is registered with the Nevada DMV, and was purchased new from a Nevada car dealer.) The car actually is owned by her father's company. The father owns all of the stock of the company. I believe a sale or transfer of the car from the company to the father (sole stockholder) would not involve Sales Tax, and a sale of the car from the father to the daughter would not involve a Sales Tax. Therefore, I would like to confirm that that sale/transfer from the father's company directly to his daughter is exempt from Sales Tax at the DMV. Please advise. Also please advise if there is a specific form to be filled out and given to the DMV.
A large computer reseller, not located in Nevada, charged me tax on the purchase of a computer system over the internet. They cannot explain to me what the tax is, but they said it is 7% and it is a " Nevada Tax". Is there any such tax? I think that since it is strangely at the same rate as Sales Tax (7%) that they are charging me Sales Tax.
If the company is located in Nevada, they must register with the Department of Taxation to collect and remit Sales/Use Tax. If they are not located in Nevada, they may register as a courtesy to their customers to collect and remit Sales Tax. In addition, because Nevada is a member of the “Streamline Sales Tax Agreement” along with other States, many businesses not located in Nevada, are registered through the Streamline Sales Tax Agreement and do collect and remit Nevada Sales Tax to this State. Please contact the Department here to inquire if a company is registered to collect Nevada Sales/Use Taxes.
If I purchase items from an out of state vendor in Texas and pay no Sales Tax to the vendor and then resell and ship the items to an out of state customer through a web site or internet auction, what taxes are due Nevada Department of Taxation.
Sales of tangible personal property made to and shipped to out-of-state customers are not subject to Nevada Sales/Use Tax. Sales Tax must be collected on any sales made to Nevada customers, no matter how the sale is initiated. Additionally, If your business in located in Nevada you must obtain a State Business License (with a few exceptions, please see the State Business License topic) and any business that has employees working in Nevada is required to pay the Modified Business Tax.
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