- 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
General Questions and Answers About the Department
What are ‘NRS’ and ‘NAC’?
(NRS) Nevada Revised Statutes are the laws of Nevada as passed by the Nevada State Legislature, signed by the Governor and codified by the Legislative Council Bureau. (NAC) Nevada Administrative Code is the clarification of the NRS as written and developed by the agency administering the statutes being clarified. All NAC's developed by the Department of Taxation must be reviewed by the Legislative Council Bureau for form and content and then must be submitted to the Nevada Tax Commission for public hearing and final approval. Nevada Administrative Code has the force of law. To reference specific NRS and NAC that govern the Department of Taxation, click here.
Income Tax in Nevada
The Nevada Department of Taxation receives an enormous number of inquiries regarding issues relating to Federal Income tax. The State of Nevada does not participate in the administration of Federal Income Tax nor does it levy a State personal, business or corporate income tax. The Nevada Department of Taxation does not require informational copies of Nevada residents’ Federal Income Tax forms. Federal Income Tax inquiries should be directed to the official IRS website at www.irs.gov
Tax Distribution – How much money was distributed to my county or entity from the Consolidated Tax Distribution?
For the current month’s distribution statistics go to the most recent press release here. Historical tax distribution can be found on our Publications Page.
County or City Population Statistics
For population statistics on a city or county, please see our Publications Page and go to the Population Statistics documents
Nevada Legal Residency
Any person desiring to register to vote must have been a Nevada resident for 30 days and a precinct resident 10 days before the next succeeding election and must furnish to the registrar of voters before the date set for the close of registration adequate proof of his/her residency, e.g., place of dwelling, place of employment, vehicle registration, driver’s license, real property owned, etc. Nevada automobile registration must be obtained with 45 days after establishing residency. There is a six-week residency requirement for the purpose of obtaining a divorce. For other limited purposes, residency may be acquired by merely moving to Nevada with the intent to stay. In every case where a legal right is dependent upon residency, Nevada law, in defining legal residence of a person, requires that such persons “having been actually, physically, corporeally present within the state or county, as the case may be, during all of the period for which residence is claimed by him/her.” Hence, a person who is not actually living within the State of Nevada cannot be or become a Nevada resident, with the exception of an otherwise duly qualified Nevada resident, who is living temporarily outside of the State with the good faith intention of returning. Mere ownership of real property within the State of Nevada by itself is not a sufficient connection with the State for declaring the owner to be a resident.
Information we provide to the public on Businesses
The Nevada Department of Taxation is bound by statute to keep information confidential regarding a taxpayer’s account. In regard to a Sales/Use Tax Permit, the only information available to the general public is the information on the actual permit. More specifically, the Permit Number, Owner, Business Name, Business Location and Date of Issue. All other information contained in Department records is confidential and disclosure of that information is prohibited without a Governor’s approval pursuant to NRS 372.750(3) or a signed authorization from the taxpayer
Incorporating in Nevada
Please contact the Nevada Secretary of State at http://sos.state.nv.us for information on incorporating in Nevada.
Report a Non-Registered Business
To report non-registered businesses that are active in Nevada, please contact the Department Taxation at one of our local offices. You can remain anonymous when reporting a non-registrant.
Minimum Wages
The minimum wage is set by the US Department of Labor, Employment Standards Administration. Please refer to the State of Nevada Labor Commission web site. Their address is http://www.laborcommissioner.com
Lodging Tax on Hotels & Motels etc
The tax imposed on room rental is Lodging Tax. In Nevada, transient lodging tax and exemptions are set at the city/county level and varies by county. Any specific questions regarding exemptions and rates should be addressed to the city/county where the hotel is located. For further information on Loding Tax Authorities, please click here.
Unemployment Tax and W2’s
The Department of Taxation does not handle unemployment compensation issues. For information regarding unemployment compensation you will need to contact the Department of Employment, Training and Rehabilitation. Their web site address is http://detr.state.nv.us
General Questions about Your Account
Amending a Tax Return
To communicate amendments or corrections that need to be made on a tax return, an 'amended return' must be mailed to the Department reflecting these changes in the following manner. Please note that if you are amending an Estate Tax return, please contact the Department first
Instructions apply to all tax types except for the State Business License and Estate Tax
- Include a copy of the original return
- Write the word “AMENDED” in black ink in the upper right-hand corner of the return.
- Line-through the original figures, in black ink, leaving original figures legible.
- Enter corrected figures, in black ink, next to or above the lined-through figures.
- Enter amount of credit claimed (if any) or amount due.
- Include a written explanation and documentation (such credit memos, exemption certificates, adjustments, etc.) substantiating the basis of the amendment(s).
- If the amended return results in a credit, a credit will be used first to satisfy current liabilities unless a refund is specifically requested. Please note on the amended return if you are requesting a credit refund.
- If additional tax is due, please remit payment along with applicable penalty and interest.
The Department will send you a written notice when a credit request has been processed and the credit is available for use or refund. Please do not apply a credit to future returns prior to receiving Departmental notification that the credit is available. (Click here for sample view)
Payments for Taxes- how long for a payment to clear
During certain months of the year, the Department receives a particularly high volume of returns and payments. This typically happens in April, July, October, and especially January, which coincides with the due dates of monthly, quarterly and sometimes annual returns. Due to increased returns and payments received, processing can take longer than normal. It could take as long as 15 days for your check to clear your account. If after 15 days your payment hasn’t cleared and you have concerns, please contact your local Department of Taxation office before stopping payment
Methods of Submitting Payments
Payments can be made via cash only with visits to the district offices. Payments of check or money orders are accepted in office and through the mail. You can also pay via Electronic Funds Transfer (EFT) on the Department of Taxation’s interactive website, www.nevadatax.nv.gov. NevadaTax allows users to file tax returns, make payments, and view financials associated with your Sales and Use Tax account or Modified Business Tax account. Effective July 1, 2008 payments of $10,000 or more in aggregate are required to be done electronically. Currently the Department accepts ACH debit but not ACH credit.
Obtaining and Receiving Tax Returns
If you need to file Sales Tax, Use Tax, or Modified Business Tax returns, you can file these returns electronically after registering to use our interactive website, NevadaTax. NevadaTax is located at www.nevadatax.nv.gov . If you file using NevadaTax, a link to a 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 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). Please note that it is extremely important to insert detailed information on these forms such as your TID, business name and period reporting for. You may click here to get blank forms from our Forms page.
Appeal and Petition Information
Please click this link to be taken to our Hearings page. Here you will find information on the appeal and petition process and frequently asked questions and answers.
Modified Business Tax Information & FAQ’s
Overview:
Effective 10/01/03, every employer who is subject to Nevada Unemployment Compensation Law (NRS 612) is also subject to the Modified Business Tax on total gross wages less employee health care benefits paid by the employer. Total gross wages are the total amount of all gross wages and reported tips paid for a calendar quarter (same amount as reported on Line 3 of ESD Form NUCS 4072.) Exceptions to this are employers of exempt organizations and employers with household employees only.
Modified Business Tax has two classifications:
General Business - Effective July 1, 2011 AB561 eliminated the Modified Business Tax on any General Business employer with $62,500 or less in taxable wages per calendar quarter, after health care deductions. The rate for any taxable wages for any General Business employer above the $62,500 per calendar quarter remains at 1.17%, after health care deductions. Prior to July 1, 2011 and after July 1, 2009 SB 429 changed the tax rate for General Business employers and created the tiered system. The sum of all taxable wages, after health care deduction, paid by the employer not exceeding $62,500 for the calendar quarter was calculated at 0.5%. 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. The rate for general business prior to July 1, 2009 was 0.63%.
Financial Institution- The tax rate for financial institutions is 2% on the gross wages less employee health care benefits pais by the employer. Financial institutions include all banks, lending institutions, credit card companies, investment companies and exclude federal credit unions.
Who is Affected?
All Employers
How do register for this tax?
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
Who do I pay this tax to?
This tax is paid to the Department of Taxation.
When is the tax due?
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
Do I also pay the unemployment compensation contributions to the Employment Security Division?
Yes
What are gross wages?
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
Is there a cap on the gross wages?
No, there is no cap, or limit, on the gross wages.
Are there any allowable deductions from gross wages?
Yes. There is a deduction for qualified health insurance/health benefit plans for employees paid by the employer. This does not include premiums being repaid to the employer by the employee.
Are employees’ dependents included in the allowable deduction?
Yes, if the premiums, claims, etc. are paid by the employer.
Are employee dental and vision insurance premiums considered allowable health insurance/health benefit plan?
Yes, as long as they are paid by the employer.
My company is self-insured; does that qualify for the deduction?
Yes. There is a provision for amounts paid for claims and direct administrative services costs.
What about amounts paid by an employer to a Taft-Hartley Trust for participation in an employee welfare benefit plan?
These amounts would also qualify for the deduction
What if the amounts paid for premiums, claim, etc. exceed the amount of gross wages for the quarter?
The excess amount may be carried forward to be applied as an offset to the gross wages in the following quarter.
Do amounts paid for health care or premiums paid for insurance for any industrial injury or occupational diseases qualify for the deduction?
No.
Can I deduct these taxes from the employee’s wages?
No.
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?
You can deduct $300 per employee per quarter.
What entities qualify as financial institutions?
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 include credit reporting companies, collection agencies, pawnbrokers, companies that extend credit for their own goods and services only, and agricultural credit associations
How will it be determined if a business qualifies as a financial institution?
The Department shall refer to the 6 digit NAICS code to determine classification as a financial institution or general business.
How do I dispute my NAICS classification of record?
A dispute may be made by filing a petition through a letter 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
If I do not own a business but I hire domestic help in my home, am I required to pay this tax?
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
What if I make a mistake- how do I amend my return?
To communicate amendments or corrections that need to be made on a tax return, an 'amended return' must be mailed to the Department reflecting these changes in the following manner.
- Include a copy of the original return
- Write the word “AMENDED” in black ink in the upper right-hand corner of the return.
- Line-through the original figures, in black ink, leaving original figures legible.
- Enter corrected figures, in black ink, next to or above the lined-through figures.
- Enter amount of credit claimed (if any) or amount due.
- Include a written explanation and documentation (such credit memos, exemption certificates, adjustments, etc.) substantiating the basis of the amendment(s).
- If the amended return results in a credit, a credit will be used first to satisfy current liabilities or future liabilities unless a refund is specifically requested. Please note on the amended return if you are requesting a refund.
If additional tax is due, please remit payment along with applicable penalty and interest
The Department will send you a written notice when a credit request has been processed and the credit is available for use or refund. Please do not apply a credit to future returns prior to receiving Department notification that the credit is available.
Sales Tax Information & FAQ’s
Overview:
Sales Tax is statutorily imposed on the sale, transfer, barter, licensing, lease, rental, use or other consumption of tangible personal property in Nevada.. Sales/use legislation was initially enacted in Nevada in 1955.
Who is Affected?
Persons who are in the business of selling or transferring tangible personal property
When is sales tax due?
Taxes are due in the period when the sales transaction takes place and cannot be delayed until the retailer actually receives payment from the customer.
What is taxable?
Nearly all tangible personal property transferred for value is taxable. Most goods, wares and merchandise are taxable in Nevada. Services necessary to complete the sale of tangible personal property are taxable. Only installation and repair/reconditioning service is not taxable if it is separately stated on the invoice and as of May 2009 transportation, shipping and postage charges are not taxable if separately stated on the customer's invoice. Other items that are not taxable include unprepared food, farm machinery and equipment, newspapers, and interest, finance and carrying charges on credit sales. You may write to the Department of Taxation at any of the District offices about the taxability of a specific item.
Are delivery charges taxable?
As of May 22, 2009 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. If they are not separately stated they are taxable.
Handling, packaging, and crating are still taxable even if separately stated. Prior to this date charges for freight, transportation or delivery in connection with the sale of tangible personal property were taxable
Is the lease or rental of tangible personal property taxable?
Yes. Sales tax is due from the lessee on all tangible personal property leased or rented. An option is given on how to pay this tax. Sales Tax can be paid on the total cost at time of purchase of the property, or Sales Tax can be paid on the total lease or rental charges within this State. NRS 372.060, 372.085, 372.105.
Is labor taxable?
Fabrication labor is always subject to Sales/Use Tax when the tangible personal property is sold at retail. Repair/reconditioning and installation labor is not subject to tax if it is separately stated on the invoice. NAC 372.380, 372.390-372.400 and NRS 372.025 and 372.065
I am in the business of consulting. 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 not in conjunction with a sale of tangible personal property are not subject to Sales Tax. However, the provider of the services has a Use Tax liability on the materials and equipment used or consumed in providing the service. Nevada Revised Statute 372.085, 372.105 and 372.185
Are vehicles, aircraft, and off highway vehicles purchased in another state subject to Nevada Sales Tax?
Yes, if they are purchased for use or storage in Nevada. In order to be registered in Nevada, proof that Sales Tax has been paid to Nevada or another state is required on all licensed vehicles (cars, trucks, motorcycles, trailers) aircraft and off highway vehicles. If proof cannot be provided, Use Tax must be paid to Nevada. Sales Tax legitimately paid to another state is applied as a credit towards Nevada Use Tax due. NAC 372.055, NRS 372.185
Do I have to pay Nevada Sales Tax when I purchase a boat?
Yes, if the boat is purchased for use or storage in Nevada. Nevada does honor Sales Tax paid to another state in an amount equivalent to Nevada's. If you purchased a boat and 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 office to pay the tax and receive a tax clearance, you may then proceed to the Department of Motor Vehicles to register the trailer and the Division of Wildlife to complete the required registration for the boat. NAC 372.055
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
Is the gas to heat my home taxable?
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
Is software, electronic magazines, clipart, program code, or other downloaded material taxable to Nevada residents?
No. Products delivered electronically or by load and leave 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 or other tangible media. A box of software or other product shipped to customers in this state is physical, tangible personal property and subject to sales tax.
Do all companies automatically add Sales Tax to taxable mail order, out-of-state, internet and telephone purchases?
No, only companies 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.
Can Sales Tax 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 or on the sales receipt a statement 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
What is Streamlined Sales Tax?
The goal of this effort is to find solutions for the complexity in state sales tax systems that resulted in the U.S. Supreme Court holding that a state may not require a seller that does not have a physical presence in the state to collect tax on sales into the state. The Court ruled that the existing system was too complicated to impose on a business that did not have a physical presence in the state. The Court said Congress has the authority to allow states to require remote sellers to collect tax.
The result of this work is the Streamlined Sales and Use Tax Agreement. The purpose of the Agreement is to simplify and modernize sales and use tax administration in order to substantially reduce the burden of tax compliance. The Agreement focuses on improving sales and use tax administration systems for all sellers and for all types of commerce
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
Does Nevada have a voluntary disclosure program for Sales/Use Tax?
Yes, In accordance with NAC 360.440 through 360.448, a taxpayer may apply for voluntary disclosure 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 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 another tax type, they can qualify for waiver of the penalty and interest pertaining to the newly disclosed tax only. The Nevada Tax Commission has the final approval authority for the waiver. The application for voluntary disclosure can be found by clicking on the Forms tab.
Is there a Sales/Use Tax exemptions for non-profit organizations?
Yes, but organizations are not automatically exempt by their Federal 501(c) status. 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 by clicking on the Forms tab. Automatically downloaded with the application are the related statutes that define the requirements for qualification. 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), so an exemption letter from the Department is not required.
Where is 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 then mailed to the qualifying organization. NRS 372.3261
What is a "Resale Certificate” and how is it used?
If tangible personal property is being purchased for resale at retail, or to incorporate the property into a final product for sale or resale, that purchaser can provide the vendor with a "resale certificate". The certificate represents the purchaser's assurance that the property is for eventual resale and the tax will be charged then. The certificate must contain a general description of the kind of property purchased for resale and the buyer's and seller's name. If delivered electronically it does not have to be signed. Resale certificates should be updated every two to three years. Out of State resale certificates are acceptable in Nevada as long as they contain the above mentioned requirements.
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 the form must include the items mentioned above. You can also download a blank resale certificate by clicking on the Forms page.
How do I amend a Sales Tax Return I’ve already submitted?
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.
How do I make a payment online?
You may make your payment online by logging into your “Nevadatax” account. Place your cursor above the word “pay”, click on either “pay an underpaid account period” or “schedule a payment”. Continue with the instructions given. Currently only ACH debit payments are accepted and not ACH credit or credit cards.
Why do I still owe Sales Tax after I filed Chapter 7 bankruptcy?
The bankruptcy 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 provide 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.
Use Tax Information & FAQ’s
Overview:
Use Tax, the counterpart of Sales Tax, is imposed upon the storage, use or other consumption in this State of tangible personal property purchased from a retailer. Use Tax is not imposed when the sales of the property to the consumer is subject to the Sales Tax. For the most part, Use Tax rather than Sales Tax, applies to property purchased ex-tax outside of Nevada for storage, use or other consumption in Nevada from other than a seller registered in Nevada. Use Tax, applies to mail order, out-of-state, toll-free “800” numbers, purchases made on the internet and other purchases of tangible personal property on which Nevada Sales Tax has not been paid
Who is Affected?
All taxpayers.
What is Use Tax?
Use Tax is the counterpart of Sales Tax. It is imposed on tangible personal property used in Nevada on which Sales Tax has not been paid. Any individual, business, corporation, or other entity can be liable for Use Tax when Sales Tax was not collected by the seller. This happens when purchasing furniture, equipment, or supplies from an out-of-state vendor, via the internet, mail order, or toll-free numbers. Any purchase, other than inventory for resale, is subject to Use Tax and must be reported to the Department of Taxation. Any Sales Tax legally collected in another state will be applied towards any applicable Nevada Use Tax NRS 372.185, NAC 372.055
Is Use Tax something new?
No. 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
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, Nevada businesses would be undercut by out-of-state vendors. 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 and the item is delivered in Nevada. 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:
1.
An individual buys a video cassette recorder from a mail order company for use in Nevada.
2.
An individual orders furniture from an out-of-state dealer who delivers or ships it to a location in Nevada
3.
An individual purchases clothing, shoes, or accessories from an internet site that delivers or ships the items to a Nevada resident
4.
An individual purchases an off-highway vehicle in another state and signs an affidavit in the state affirming that the vehicle will be used and stored in Nevada.
5.
An out-of-state resident purchases a vehicle, vessel, or aircraft from an out-of-state dealer who delivers the property to Nevada to be used by the individual or individual’s company operating in Nevada
6.
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
7.
A Nevada business orders a computer system from an out-of-state dealer who delivers or ships the system to the Nevada business address
8. A Nevada business orders equipment, reference materials, office supplies, or furniture from an out-of-state vendor to be used in Nevada
Don’t all companies automatically add Sales Tax to taxable out-of-state, internet, mail order, and telephone purchases?
No. 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 Department of Taxation
Is there a credit for Sales or Use Tax paid to another state?
Yes. Nevada does recognize Sales Tax paid to another state. However, if the Sales Tax paid is less than 8.10% then the difference needs to be reported as Use Tax.
How do I know what is taxable?
Taxable items are tangible personal property transferred for value. This includes property purchased for lease or rent, other than real estate. Most goods, wares and merchandise are taxable in Nevada. Unprepared food is exempt
How do I report and pay Use Tax if I am not a retailer or in business?
A Use Tax liability, of a person not in business, may be reported on a one-time return available at any Department of Taxation office. 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. 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. Non- retail businesses that hold a State Business License must report and remit Use Tax with their yearly or quarterly Consumer Use Tax Return
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 prior to July 1, 2011 and .75% effective July 1, 2011 and after. A penalty of no more than 10% per month 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
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. These include routine audits, special audits, self-assessment programs, complaints, reports, investigations and by obtaining lists of out-of-state purchases through the cooperation of vendors and taxing authorities in 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.
Are boats, watercraft, motor vehicles and off highway vehicles purchased in another state through mail order, over the internet and toll free “800” numbers subject to Nevada tax?
Yes. In order to register or operate all boats, watercraft, off highway vehicles and motor vehicles (cars, trucks, and motorcycles) in Nevada, proof that Sales Tax has been paid to Nevada or another state is required. If proof cannot be provided, Use Tax must be paid.
Do retailers also owe Use Tax?
Yes. Any purchase, other than inventory, made by a retailer from a non-registered vendor, for use in the business, is subject to Use Tax and must be reported on the monthly or quarterly Sales and Use Tax return. Examples of this are supplies, forms, or equipment that is not re-sold. Any items taken from inventory for use in the business are also subject to Use Tax. Any items given away for free as part of doing business are subject to Use Tax payable by the business giving it away. However, effective July 1, 2007, items with a nominal value that are given away at conventions, trade shows, & public events are not subject to Use Tax
Liquor Taxes Information & FAQ’s
Overview: Please click here.
Cigarette & Other Tobacco Tax Information & FAQ’s
Overview:
Per NRS 370 an excise tax is charged on all tobacco products; see below for rates.
Cigarette Tax:
1’s pack .04 cents per pack
20’s pack .80 cents per pack
25’s pack 1.00 dollar per pack
Other Tobacco Tax:
30% of Wholesale Price
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 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
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 .25% 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.
FAQ In-State Cigarette Wholesaler
FAQ Out-of-State Cigarette Wholesaler
Tire Tax Information & FAQ’s
Overview:
Per NRS 444A
Fee of $1.00 per new tire. The requirement in NRS 444A.090 applies to all retail transactions regardless of whether the purchaser is exempt from sales ands use tax under chapter 372.
Insurance Premium Tax Information & FAQ’s
Overview:
Per NRS 680B, Nevada imposes a tax of 3.5% of net direct premiums written and net direct considerations written in our state. Qualified Risk Retention Groups pay a premium tax of 2%.
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.
Can I file my return online?
You are required to make your payment online if it is over $10,000; however at this time you cannot file online and will have to mail the hard copy into the Department.
Estate Tax Information & FAQ’s
Overview:
Per NRS 375A, tax is imposed in the amount of the maximum credit allowable against the federal estate tax for the payment of state death taxes.
Who is Affected:
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 apply on deaths occurring after December 31, 2004. Nevada is based solely on this credit and Nevada does not require filing for descendants 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?
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).
Live Entertainment Tax Information & FAQ’s
Who is Affected:
The owner and operators of the facility where live entertainment in provided.
Effective 1/1/04, a Live Entertainment Tax was approved by the 20th Special Session of the Nevada Legislature. This tax is administered by two State agencies, the Gaming Control Board for live entertainment events held within licensed gaming establishments; and the Department of Taxation for live entertainment events held outside of licensed gaming establishments. Laws governing the Live Entertainment Tax are Nevada Revised Statute (NRS) Chapter 368A -Tax on Live Entertainment; and Nevada Administrative Code (NAC) Chapter 368A. Both can be found on the Nevada Legislature’s website at http://www.leg.state.nv.us/.
If you are a licensed gaming establishment please refer to the Nevada Gaming Control Board website at http://gaming.nv.gov for additional information. Rules are different for Gaming and Non-Gaming establishments.
Q. How is Live Entertainment defined?
A. Live Entertainment is defined by statute as meaning any activity provided for pleasure, enjoyment, recreation, relaxation, diversion or other similar purpose by a person or persons who are physically present when providing an activity to a patron or group of patrons who are physically present.
It includes without limitation to one or more of the following:
- Music or vocals provided by one or more professional or amateur musicians or vocalists.
- Dancing performed by one or more professional or amateur dancers or performers.
- Acting or drama provided by one or more professional or amateur actors or players.
- Acrobatics or stunts provided by one or more professional or amateur acrobats, performers or stunt persons.
- Animal stunts or performances induced by one or more animal handlers or trainers.
- Athletic or sporting contests, events or exhibitions provided by one or more professional or amateur athletes or sportsmen.
- Comedy or magic provided by one or more professional or amateur comedians, magicians, illusionists, entertainers or performers.
- A show or production involving any combination of the activities described in subparagraphs (1) to (7), inclusive.
- A performance involving one or more of the activities described in this paragraph by a disc jockey who presents recorded music. For the purposes of this subsection, a disc jockey shall not be deemed to have engaged in a performance involving one or more of the activities described in this paragraph if the disc jockey generally limits his interaction with patrons to introducing the recorded music, making announcements of general interest to patrons, and explaining, encouraging or directing participatory activities between patrons.
It exempts the following:
- Instrumental or vocal music, which may or may not be supplemented with commentary by the musicians, in a restaurant, lounge or similar area if such music does not routinely rise to the volume that interferes with casual conversation and if such music would not generally cause patrons to watch as well as listen.
- Occasional performances by employees whose primary job function is that of preparing or serving food, refreshments or beverages to patrons, if such performances are not advertised as entertainment to the public.
- Television, radio, closed circuit or Internet broadcasts of live entertainment.
- Entertainment provided by a patron or patrons, including, without limitation, singing by patrons or dancing by or between patrons if they receive no compensation from any source for providing the entertainment.
- Animal behaviors induced by animal trainers or caretakers primarily for the purpose of education and scientific research.
- An occasional activity, including, without limitation, dancing that does not constitute a performance, is not advertised as entertainment to the public, primarily serves to provide ambience to the facility and is conducted by an employee whose primary job is not that of an entertainer.
Q. Who is responsible for this tax?
A. NRS 368A.110 defines the taxpayer for non-gaming facilities as the owner or operator of the facility where the live entertainment is provided or in the case of a publicly owned facility or public land the person who collects the taxable receipts.
Q. What are the Live Entertainment Tax rates?
A. The Live Entertainment Tax is two tiered with a 10% tax rate and a 5% tax rate based upon the “maximum occupancy” of the facility where live entertainment is taking place.
Effective 7/1/05 the 10 % rate is applicable to a facility with a minimum occupancy of 200 and a maximum of 7,499. The 10% tax rate also applies to admission charges, merchandise, food and refreshments sold at the event. Prior to 7/1/05 the 10% tax rate was applicable at events where the occupancy of the facility was a minimum of 300 (instead of 200) to a maximum of 7,499. For facilities with an occupancy of 7,500 or more, the tax rate is 5% on admission charges only.
Q. When is a facility liable for Live Entertainment Tax on food, refreshments and merchandise?
A. A facility with a Maximum occupancy of 200 or more and less than 7,500 is in live entertainment status. For non-gaming facilities this means when an admission fee is charged for the right or privilege to have access to a facility where live entertainment is provided.
Q. When is a facility considered to be in Live Entertainment Status?
A. Live Entertainment status commences when any patron is required to pay an admission charge before he is allowed to enter a facility, where there will be live entertainment, regardless of when the live entertainment starts. An admission charge includes an entertainment fee, a cover charge, a table reservation fee, or a required minimum purchase of food or merchandise.Many facilities allow patrons to purchase tickets well in advance of the actual performance. For theaters where live entertainment is held, live entertainment status begins as soon as patrons are admitted to the theater for the performance. For example, if the show starts at 10:00 p.m. but the doors open at 9:00 p.m., the theater is considered to be in live entertainment status at 9:00. Food, refreshments and merchandise sold between 9:00 and the time the theater is vacated by persons attending the 10:00 show are subject to the tax, regardless of the time the actual performance begins and ends. The admission charge, regardless of the time paid, is always subject to the tax.
For lounges, bars and similar facilities where live entertainment is provided in the evenings and an admission charge applies only part of the day, but the facility is open at other times, the facility is in live entertainment status as of the time the patron is required to pay the admission charge. For example, if the facility is open from noon until 1:00 a.m. and an admission charge is imposed beginning at 8:30 p.m. and the live entertainment begins at 9:00, the facility is considered to be in live entertainment status at 8:30 and remains in that status until all persons are admitted with the payment of an admission fee. All sales of food, refreshments and merchandise within the facility are subject to the tax during this time period. The admission charge in this example is always taxable regardless of the time paid.
The taxpayer must maintain detailed records showing that they are authorized to be exempt from the Live Entertainment Tax on admission charges and sales when the facility is not in Live Entertainment Status.
Q. Does the existence of an admission charge automatically trigger the Live Entertainment Tax?
A. No. If there is no live entertainment being provided, then the tax does not apply. However, if the admission charge is imposed just prior to the start of live entertainment, then the facility is considered to be in Live Entertainment Status.
Q. Is a fee collected to ride an elevator or escalator to a Live Entertainment facility an admission charge?
A. Typically, yes. In situations where the patron, by riding the elevator or escalator, may gain access to a live entertainment facility or may choose to visit only the facilities that do not offer live entertainment, for purposes of taxing the admission charge, no distinction shall be made as to whether the patron actually entered the facility with live entertainment or not, even if an additional fee is charged for the right or privilege of entering a smaller venue within that area or those premises (NAC 368A.100). However, it does not mean that taxes must be paid on sales in a restaurant without entertainment that are accessible only by the elevator or escalator for which a charge is required. The taxpayer must identify through its detailed record keeping the sales to patrons who are unable to see or hear the live entertainment from the location within the facility where food, refreshments or merchandise is sold.
Q. How is “maximum occupancy” determined?
A. The “maximum occupancy” of the facility where the live entertainment is taking place is determined by using the following criteria in order of priority: a) The maximum occupancy established for the facility by the State Fire Marshall, or by another local government agency; b) If the facility occupancy is not established, then by the maximum occupancy designated on any permits required for the event; or c) If such a permit does not designate the maximum occupancy of the facility, the actual seating capacity of the facility will be used. Pursuant to NAC 368A.130, for non-gaming establishments, if there is no governmental permit designating the maximum occupancy of a facility where live entertainment is provided, the Department shall compute the tax rate on the presumption that the actual seating capacity of the facility is 200 persons or more and less than 7,500 persons. To appeal this determination the taxpayer of the facility must establish, to the reasonable satisfaction of the Department, that the actual seating capacity of the facility is less than 200 or more than 7,500.
Q. If a facility has been rated by the Fire Marshal as having a maximum occupancy well over 7,500 and has a specific event where the seating capacity is well below that number, which tax rate applies?
A. NRS 368A.200(6)(a) specifically states that the maximum occupancy seating capacity for purposes of the Live Entertainment Tax is based upon the Fire Marshal’s rating if one has been determined. Therefore, unless the Fire Marshal has re-rated the facility, the taxpayer should pay taxes only at the rate of 5% on admission charges.
Q. What is the registration fee for Live Entertainment Tax?
A. There is no registration fee for this tax. A taxpayer who intends to provide live entertainment at a facility that is not in a license gaming establishment shall contact the Department of Taxation and register to collect and remit the Live Entertainment Tax.
Q. What is the reporting frequency for Live Entertainment Tax?
A. For non-gaming establishments registered with the Department of Taxation, the reporting frequency is monthly. The Live Entertainment Tax returns should be filed on or before the last day of the month, reporting the amount of taxable receipts for the preceding month.
Q. Is Live Entertainment Tax due in addition to applicable sales tax on merchandise, food and refreshments sold within a live entertainment event when the occupancy of the facility is between 200 and 7,499?
A. Yes. The 10% Live Entertainment Tax rate is applicable on the gross receipts of admission charges, merchandise, food and refreshment sales, and is in addition to the applicable sales tax.
Q. Can a taxpayer charge their patrons the Live Entertainment Tax they are required to pay?
A. Yes. A taxpayer who collects any amount that is taxable pursuant to NRS 368A is liable for the Live Entertainment Tax and is entitled to collect reimbursement from any person paying that amount. Any ticket for live entertainment must state whether the Live Entertainment Tax imposed is included in the price of the ticket. If the ticket does not include such a statement the taxpayer shall pay the Live Entertainment Tax based on the face amount of the ticket. Taxpayers are required to keep their records for at least 4 years.
Q. Are there any Live Entertainment events not subject to the tax?
A. Yes:
- Events where all the proceeds from the admission charges go entirely to a non-profit organization that qualifies as a tax-exempt organization under 26 U.S.C. Section 501(c) or a non-profit corporation organized under NRS Chapter 82 are exempt from the Live Entertainment Tax.
- If all the proceeds from the admission charges are donated to a non-profit organization by another person who is not a non-profit organization, those proceeds are also exempt from the Live Entertainment Tax, even if the contract for that event allows a person other than the non-profit organization to sell goods and services at that event. The sales of food, refreshments and merchandise would also be exempt in this situation.
- Live entertainment provided at a non-gaming facility with a maximum occupancy of less than 200.
- Boxing contests or exhibitions which can be defined as “unarmed combat” pursuant to NRS 467.0107.
- Merchandise sold outside a facility and available to the general public where live entertainment is provided, unless the purchase of such merchandise serves as an admission charge to the event.
- Live entertainment provided at a trade show.
- Live entertainment performed by strolling musicians whose only purpose is to move constantly through the audience and no other live entertainment is provided to the patrons.
- Live entertainment provided in the common area of a shopping mall.
- Food and product demonstrations at a shopping mall or craft show.
- Live entertainment that is incidental to an amusement ride, a motion simulator, or electromechanical attraction. (Not the predominant element or reason the public rides or participates in the electromechanical attraction)
- Live entertainment that is provided to the public in an outdoor area that is free of admission charges or other purchase requirements.
- Beginning 7/1/05, at an outdoor concert at a non-gaming establishment.
- Beginning 7/1/07, at NASCAR race events in Nevada.
- Beginning 7/1/07, a baseball contest, event or exhibition conducted by professional minor league baseball players at a stadium in this State.
- Live entertainment in a restaurant which is incidental or ambient in nature as long as there is no charge to the patrons for the entertainment.
Q. What special steps should a taxpayer take if they intend to consider an event exempt from the Live Entertainment Tax?
A. NRS 368A.200(5)(b) provides guidance as to when an event is not subject to the tax because the proceeds go to a qualifying organization. The taxpayer is responsible to ensure a non-profit organization qualifies for exempt status from Live Entertainment Tax. If it is subsequently determined that the taxpayer failed to pay taxes on an event that was improperly treated as a non-profit benefit, the Live Entertainment Tax will be assessed on all admissions, and if the facility’s occupancy is 200 or more and less than 7,500, Live Entertainment Tax will also be assessed on the sale of food, refreshments and merchandise.
Taxpayers must maintain records showing they were entitled to exempt a non-profit organization from Live Entertainment Tax. NAC 368A.160 contains further guidance as to the extent of detailed records that may be requested by the Department. Taxpayers are responsible for ensuring that the organization qualifies as a non-profit entity and qualifies for exemption from Live Entertainment Tax. In addition, the taxpayer must keep detailed records showing the amounts collected, the amounts remitted to the non-profit organization, and the direct supportable costs associated with the event. A copy of the agreement between the taxpayer and the qualifying organization must also be maintained.
Q. If admission charges are being kept by the taxpayer but food, refreshment and merchandise sale proceeds are donated to a non-profit organization, are the food, refreshments and merchandise sales exempt from the Live Entertainment Tax?
A. No. NRS 368A.200(5)(b) and NAC 368A.150 establish that admission charges donated to a non-profit entity are exempt from Live Entertainment Tax and also exempts the sale of merchandise, food and refreshments from Live Entertainment Tax. However, a similar exemption is not available when the admission charges are retained by the taxpayer and the sale proceeds of merchandise, food and refreshments are donated to a non-profit entity. If all the admission charge proceeds (less the direct and supportable costs discussed in NAC 368A.150(1)) are not donated to a non-profit organization, the event shall be subject to the Live Entertainment Tax and all admission charges and if applicable food, refreshments and merchandise will be taxable.
Q. How is the Live Entertainment Tax to be applied to tickets sold by someone other than the owner or operator of the facility where the live entertainment is held?
A. Assume that ABC Company has a show on its property but the facility is actually operated by TEI. Although both ABC and TEI sell tickets to this show, other companies do as well. The other companies charge a fee of $5 a ticket and remit to TEI only the proceeds net of the $5 fee. None of the other sellers are related to either ABC or TEI. In this case, the net proceeds are subject to the tax and the $5 fee is excluded from the taxable sales. However, assume that XYZ Company, an affiliate of ABC, sells the tickets and remits only $10 from each sale to ABC. Because the company selling the ticket is affiliated with ABC, the amount paid by the patron should be used to determine the taxable sales amount. The same answer would apply to sales made by an affiliate of TEI. Note that fees paid by TEI to ABC for selling tickets would never reduce the taxable amount of the sale. Furthermore, the amount collected by TEI and ABC is the amount on which the tax is computed regardless of any arrangement between TEI and ABC.
Q. May the taxpayer deduct credit card fees associated with admission charges?
A. Yes. NRS 368A.200(2)(b) and NAC 368A.150 allow a deduction for gratuities directly or indirectly remitted to persons employed at the facility where live entertainment is provided or for service charges including those imposed in connection with the use of a credit card or debit card which are collected and retained by persons other than the taxpayer, as long as these fees are supported by documentation.
Q. What kind of activities by bartenders could constitute Live Entertainment”?
A. Most bartender activities would not qualify as live entertainment even if bottles are juggled or fancy serving techniques designed to entertain the patrons are utilized. However, if the bartenders engage in singing, dancing or acrobatics, these activities are likely to be considered live entertainment, just as if any other performer were involved.
There is a specific exclusion in the definition of live entertainment for “Occasional performances by employees whose primary job function is that of preparing or serving food, refreshments or beverages to patrons, if such performances are not advertised as entertainment to the public. (See NRS 368A.090(2)(b)(2)) Note that two criteria must be met. First, the performances must be occasional, not performed frequently. Second, the activities of the bartenders must not be advertised as entertainment. In a few facilities in Nevada, these criteria would not be met, as the activities of the bartenders constitute the primary draw to the facility. The advertising for these facilities usually focus on the activities of the bartenders.
Q. Are fashion shows Live Entertainment?
A. Yes, in most cases in non-gaming establishments even if the models move continuously through the audience.
Q. Are speeches by motivational, informational or political speakers considered Live Entertainment?
A. No, unless the speaker engages in other activities considered live entertainment.
Q. Are circuses Live Entertainment?
A. Yes, a circus typically combines a number of activities specifically defined as live entertainment in NRS 368A.090(2)(a).
Q. Are contests Live Entertainment?
A. Yes. Any type of organized contest conducted in front of an audience is considered live entertainment. Examples include beauty pageants, bikini contests and fitness contests. Unless some specific exemption applies (e.g., exemption for non-profit events), the event is subject to the Live Entertainment Tax, and the tax would apply to admission charges; and if the facility is under the 7,500 occupancy requirement, food refreshments and merchandise would also be taxable. However, a contest that is strictly between patrons with no advance sign-up or pre-qualifying required (e.g., a drinking contest) would be viewed as an activity among patrons and would be excluded from the definition of live entertainment per NRS 368A.090(2)(b)(6).
Q. In an event that has been determined to have entertainment that is not considered “Live Entertainment” under the definition found in NRS 368A.090, what if someone sings a song such as the National Anthem as part of the event? Is the event now taxable?
A. No, in most cases. While it is true that singing is a form of live entertainment, in most cases the singing of the National Anthem or similar presentation, is entirely incidental to the event itself. While this specific issue is not addressed in the law or regulation, the informal policy stated herein conforms to the concept stated in NRS 368A.090(2)(b) regarding performances that are not considered live entertainment. This guidance applies only to the cases where any singing remains incidental to the event. Generally, singing will be deemed incidental to the event if only one song is sung during an event that otherwise included no other live entertainment.
Q. What outdoor events qualify for the exemption found in NRS 368A.200(5)(m)?
A. If an outdoor event is offered to the general public, and there is no admission charge, no purchase of food, refreshments or merchandise required, than the event qualifies under this exclusion. However, the event must be open to the general public. A common issue is with poolside entertainment. If the pool area is accessible to anyone visiting the property without having to pay an admission or purchase anything, then the event qualifies for the exemption. If access to the pool area is generally restricted to hotel guests (even if there may be some exemptions whereby others might be admitted) then the entertainment is not deemed to be “offered to the public” and is taxable.
The use of temporary structures like tents or canopies does not change the event to an indoor event for purposes of this exemption.
Q. What is the proper tax treatment of fees charged by taxpayers for processing admission charges subject to the Live Entertainment Tax?
A. Any fees collected and retained by a taxpayer in connection with the admission charges to events subject to the Live Entertainment Tax increases the taxable amount of the sales. The exact computation of taxable revenue depends upon a number of factors, but the taxpayer must account for the additional fees collected when computing the revenue.
Note that processing fees can be assessed on either a per-ticket or a per-order basis. Both types of processing fees increase the taxable amount of the sale. When a taxpayer imposes a per-order charge on admission charges subject to the tax and admission charges not subject to the tax, the per-order charge may be allocated on a pro-rata basis. Alternatively, the taxpayer may elect to pay taxes on the full amount of the per-order charge to simplify their accounting procedures.
Q. Are photographs merchandise or a service?
A. Generally, any existing photographs available for sale are merchandise. This would include posters or other merchandise featuring the pictures of performers, etc. Merchandise sales are generally subject to the Live Entertainment Tax if sold within a facility with occupancy of 200 to 7,499 offering live entertainment (all rules for merchandise sales found in NRS 368A apply).
However, some taxpayers offer patrons the option of getting their pictures taken with the performers for a fee or for tips. Activities of this nature are considered a service, not merchandise. Therefore, the amounts paid by patrons for this service are exempt from the Live Entertainment Tax. Any actual merchandise sold with the picture imprinted would be subject to the Live Entertainment Tax. For example, a performer will pose for a picture with a patron. If all the patron wants is a print of the picture, the taxpayer charges $10. If the patron wants that picture on a coffee mug, the coffee mug with the picture is $25. The $10 fee is considered a service not subject to the Live Entertainment Tax. However, the $25 price of the coffee cup is merchandise and the entire price of the mug is subject to the tax.
Bank Excise Tax Information & FAQ’s
Overview:
Effective 1/1/04, the bank branch excise tax is an excise tax imposed on each bank for each branch office maintained by the bank in excess of one in this State. Effective 7/1/05, the bank branch excise tax is imposed on each bank for each branch office in excess of one maintained by the bank in each county in this State. The tax is calculated on those Nevada branch locations in excess of one that were open for business on the first day of a given calendar quarter. The tax rate is $1,750.00 per branch per quarter.
Who is Affected:
All banks maintaining branch offices in Nevada
ShortTerm Lessor (Passenger Car Rental) Tax Information & FAQ’s
Overview:
The Governmental Services Fee is 6% up through 09/30/2009 and 10% from 10/01/09 and forward per NRS 482.313 Washoe and Clark County Car Rental Fees are 2% per NRS 244A.810 and NRS 244A.860, upon the short term lease (31 days or less) of passenger vehicles commencing in this state. To see an example of how a short-term lease may be calculated please click here.
Who is Affected:
Any entity who holds a license as a short term lessor with the DMV.
What is a short term lessor?
A person who has leased a vehicle to another person for a period of 31 days or less, or by the day or by the trip and has been licensed pursuant to NRS 482.363. (NRS 482.053)
What is the definition of a passenger car?
A passenger car is defined as a motor vehicle designed to carry 10 persons or less. Passenger car does not include motorcycle, power cycles, motor driven cycles, motor trucks, or motor homes. (NRS 482.087, 482.071, & 482.073)
What is the governmental services fee to rent a passenger vehicle?
The fee charged and collected is 10 percent of the amount for which the passenger vehicle was leased. The fee does not include any fee or tax imposed by a governmental entity.
In charging and collecting the governmental services fee the following items must not be included in the total amount for which the passenger car was leased:
- The amount of any fee charged and collected for the County Short-Term rental.
- The amount of any charge for fuel used to operate the passenger car.
- The amount of any fee or charge for the delivery, transportation or other handling of the passenger car.
- The amount of any fee or charge for insurance, including, without limitation, personal accident insurance, extended coverage or insurance coverage for personal property.
- The amount of any charges assessed against a short-term lessee for damages for which the short-term lessee is held responsible.
(NRS 482.313)
What is the recovery surcharge?
The recovery surcharge is a fee charged for the reimbursement of vehicle licensing fees and taxes paid by the short term lessor. The recovery surcharge was eliminated effective 10/1/2009. Prior to the latest enactment date, several changes have affected this fee. The lessor is advised to contact the Department of Taxation for clarification of the statutes prior to 10/1/2009.
What are Vehicle Licensing Costs?
As of 10/1/2009, the short-term lessor is allowed to charge its customer a fee to recover its vehicle licensing costs that have been paid by the short-term lessor. Vehicle Licensing Fees are defined as
Registrtation fees
Certificate of Title
License plates
License plate decals, stickers and tabs
Inspection fees
Basic/supplimental government services taxes (registration fees)
The short-term lessor is required to make good faith estimates of its vehicle licensing costs for each calendar year and the charge that must be imposed in each lease to recover those costs.
What are the reporting requirements for the Vehicle Licensing Costs?
The short-term lessor is required to report on an annual basis to the Department of Taxation the amount of its vehicle licensing costs for the immediately preceding calendar year and the amount of money collected by the short-term lessor for the recovery of its vehicle licensing costs. If the estimate is over or under the actual costs, the short-term lessor is required to adjust the estimate for the subsequent calendar year.
What is the 2% county return fee?
Effective April 1, 2004 Washoe County Board of Commissioners enacted a 2% County Car Rental Fee for the lease of passenger vehicles commencing in Washoe County. NRS 244A.810 authorizes the county commissioners whose population is 100,000 or more but less than 400,000, to impose a fee on the lease of passenger car by a short-term lessor. This fee is by ordinance only, and may only be up to 2% of the total amount for which the passenger car was leased.
Effective July 1, 2005 Clark County Board of Commissioners enacted a 2% County Car Rental Fee for the lease of passenger vehicles commencing in Clark County. NRS 244A.860 authorizes the county commissioners whose population is 400,000 or more to impose a fee on the lease of certain passenger cars by a short-term lessor. This fee is by ordinance only, and may only be up to 2% of the total amount for which the passenger car was leased.
The County Car Rental fee cannot be imposed on the rental of a replacement vehicle, defined as
A vehicle that is rented temporarily to a person for the purposes of repairs to that person's leased or owned vehicle.
A vehicle that is used by a person in place of a motor vehicle owned by the person which is unavailable for use because of mechanical breakdown, repair, service, damage or loss as defined in the owner’s policy of liability insurance for the motor vehicle.
Short term lessors located in Washoe and/or Clark Counties must also file the County Car Return and pay the County Car Return Fee to the Department on or before the last day of the month following each calendar quarter.
The 2% fee is charged on everything but any Governmental fee or tax (Example 10% Governmental Services fee, Sales tax or airport concession fee).
What is subject to sales/use tax on the rental of passenger cars?
The lessor has the option when purchasing a .passenger car for lease/rental within Nevada to:
1. Pay the sales tax due in this state on the cost of the passenger car; or
2.
Pay the sales tax on the gross lease or rental charges for the lease or rental of the passenger car within this state
The lessor must make this election not later than the date upon which the first tax return is due following the purchase of that property for lease. There is no longer a form that is required to make this election.
If the lessor has chosen to pay sales tax on the cost of the passenger car, there is no additional tax due and the lessor cannot collect tax from the lessee on the gross lease or rental charge.
If the lessor has chosen to pay sales tax on the gross lease or rental charges for the lease or rental of the passenger car then the lessor may seek reimbursement from the lessee.
A lessor who elects to pay tax measured by the gross lease is not required to pay the sales tax for the purchase of parts for the vehicle committed to lease in this state if the lessor gives a re-sale certificate to the vendor.
Mandatory charges for any service, activity or function made in conjunction with the lease are considered part of the gross lease or rental charges and are subject to sales tax. This may include but are not limited to:
A fee or charge for mileage
A fee or charge for return, commonly known as “drop off charge” (not to be confused with an airport concession fee)
A fee for the reinstatement of a lease
Optional charges, separately stated, made in conjunction with the lease are not subject to sales tax. This may include but are not limited to:
Charge for collision damage waiver
Charges for insurance
Charges for Fuel
Charges for delivery, or other handling of the property
(NAC 372.080)
Lease or rental charges do not include
A fee for access to an airport
Any late payment penalty
Any charges for the reimbursement of taxes
Any disposition fees
How should these items be listed on the lease/rental contract?
At the time the lease commences, the short-term lessor must provide the lessee with a lease agreement which clearly discloses all charges for the entire lease, excluding charges that cannot be determined at the time the lease commences. At the time the short-term lessor provides a price quote or estimate for the short-term lease of the passenger car, the lessor must disclose the existence of any vehicle licensing costs and any other separately stated additional charges.
What are short term lessors required to file with the Department of Taxation?
All short term lessors shall file a return and pay the governmental services fee to the Department of Taxation on or before the last day of the month following each calendar quarter. The return must include governmental services fees collected by the short term lessor, any vehicle licensing costs paid to DMV, and any amounts collected for recovery of vehicle licensing costs.
How long is a short term lessor required to keep their records?
Pursuant to NRS 372.734, a business is required to keep records for at least 4 years. There is no time specified for record-retention under NRS 482.315.
Exhibition Facilities Fees Tax Information & FAQ’s
Overview:
Per NRS 360.787
Real Property Tax Information & FAQ’s
Overview:
The Real Property Transfer Tax (RPTT) is a tax collected when an interest in real property is conveyed (NRS 375). It is collected by the County Recorder at the time of recording. A Declaration of Value form is required to be completed so the tax can be calculated. The rate varies among counties. In 2003, the legislature added $1.30 per $500 of value to the rate levied on the transfer of real property for use by the State of Nevada, in addition to the rates already established for local revenues. The basis for the tax is the actual selling price or the estimated market value of the property. The Department of Assessment Standards (DOAS) oversees the collection process including determination of exempt transactions; and audits the records of the county recorders
Who is Affected:
All parties who participate in transactions involving the transfer of real property.
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)
For More Information on Property Tax, please see our Property Tax Page.
Motor Vehicle Fuel Tax Information & FAQ’s
Per NRS 365, 373, and 590, the State of Nevada taxes gasoline, gasohol, jet fuel, and aviation fuel.
EFFECTIVE JANUARY 1, 2002, MOTOR VEHICLE FUEL TAXES WILL BE COLLECTED BY THE DEPARTMENT OF MOTOR VEHICLES AND PUBLIC SAFETY (DMV & PS), MOTOR CARRIER BUREAU. QUESTIONS REGARDING THIS CHANGE SHOULD BE DIRECTED TO THE DEPARTMENT OF MOTOR VEHICLES; MOTOR CARRIER SECTION AT,(775) 684-4711.
