Department of Taxation

The State of Nevada has enacted temporary legislation intended to address the current budget issues for the remainder of FY 2009. These measures include a reduction in the Collection Allowance authorized for taxpayers who collect and remit certain taxes in a timely manner. Taxes affected are Sales Tax, Liquor Excise Tax for Sales to Consumers, Liquor Excise Tax, Other Tobacco Products Tax and Cigarette Tax. The collection allowance for these tax types will be reduced from .5% to .25% for the period beginning on January 1, 2009 and ending on June 30, 2009. Tax returns for these periods will reflect the reduction in the collection allowance.

The temporary legislation also amends NRS 482.313 for the Short-Term Lessors of Passenger Cars. The amount of the recovery surcharge paid to the State will be increased from 25% to 50% for the period beginning on January 1, 2009 and ending on June 30, 2009. Tax returns for these periods will reflect this increase.

In addition, advance payment of the net proceeds of minerals tax based upon the estimated net proceeds and royalties for the 2009 calendar year is required.    For the first time, operators will be required to report and pay tax on royalties on behalf of royalty recipients.  The tax so paid on royalties must be deducted from the royalty payment to the royalty recipient.  Operators may supplement the report due on March 1 with quarterly reports and pay any additional amounts due.