Business Taxes

Business Taxes 2017-12-11T09:33:16+00:00

Below you’ll find an overview of all Nevada taxes.

Any item below marked with an asterisk (*) is administered by the Department of Taxation. For information on taxes we don’t administer, we encourage you to contact the enforcing agency for the latest and most up to date information. Wherever possible, we’ve noted a contact name, phone number, e-mail address or web site.

These taxes are administered by the Department’s Division of Assessment Standards and local county assessors. Property taxes are applied to property of every kind and nature, including real and personal property. Some property is exempt from taxation pursuant to Nevada Revised Statutes. The Division values for assessment purposes the property of all interstate or intercounty railroad, sleeping car, private car, natural gas transmission and distribution, water, telephone, scheduled and unscheduled air transport, electric light and power companies, and the property of all railway express companies. The Division also values mining properties on behalf of county assessors. County assessors value and assess all other property.

The tax rate on liquor is based on the percentage of alcohol. Tax Rates per gallon are:

0.5% – 14% 40 cents
More than 14% – 22% 75 cents
Over 22% $2.05
Malt Beverage 9 cents

Packs of 20 are taxed at the rate of 35 cents per pack. A tax on other tobacco products is imposed at 30 percent of the wholesale value which is paid by the wholesale dealers.

Corporations are formed by filing Articles of Incorporation in the office of the Secretary of State. Thereafter, it is necessary only to file certificates of amendment to articles; certificate of reduction of capital; merger agreement; and lists of corporate officers, directors and resident agents within 60 days after incorporation and annually thereafter on the anniversary month. Contact: Secretary of State,
101 N. Carson St, No. 3, Carson City, NV 89701
Telephone:775-684-5708.

The amount of tax is the maximum state credit allowable against the federal estate tax.

For information, contact: GamingControl Board,
1919 E. College Parkway,
Carson City, Nevada 89706
Telephone: 775-687-6500

Nevada has no personal income tax, per its Constitution.

In Nevada, insurers pay 3.5 percent of the total direct premiums written for the preceding calendar year covering property or other risks in the State. Return premiums may be deducted. An insurance company domiciled outside Nevada pays the same premium tax and fees to Nevada as a Nevada company would be required to pay to the domiciliary state when such tax and fees are greater than that charged by Nevada. A Nevada domestic company maintaining a qualified home office in Nevada will receive a reduced premium tax rate of 1.75 percent. This also applies to a foreign company establishing a qualified regional home office.

A statewide hotel/motel room tax of 1 percent is imposed in addition to any similar tax imposed by a local government.

Fees for interstate and intrastate carriers vary by vehicle and use. Contact: Department of Motor Vehicles and Public Safety
Motor Carrier Bureau
555 Wright
Way, Carson City, Nevada 89711

Telephone: 775-684-4711

Gasoline and gasohol are taxed at 23 cents per gallon. Additional county taxes range from 5 to 10 cents per gallon. Combined state/county rates will vary from a minimum 28 cents per gallon to a maximum of 33 cents per gallon depending upon the county. Diesel fuel is taxed at 27 cents per gallon. Aviation fuel is taxed at 2 cents per gallon, counties have an option, by ordinance, to impose an additional 1 cent to 9 cent per gallon tax.

For information regarding registration and current
tax rates contact: Department of Motor
Vehicles and Public Safety, Registration Division

555 Wright Way,
Carson City, Nevada 89711
Telephone: 775-684-4830.

Annually, operators and royalty recipients are required to report the total gross yield and claimed net proceeds received from each geographically separate operation where a mineral is extracted during the preceding year.

There is an administrative fee for the production of oil and natural gas of 100 mills per barrel of oil or 50,000 cubic feet of natural gas, a minimal cost to producers. The permit processing fee for oil wells is $200 and for geothermal wells varies from $50 for domestic wells to $500 for industrial wells.

Contact: Commission on Mineral Resources, Division of Minerals,
400 W. King Street, Suite 106,
Carson City, NV 89710
Telephone: 775-687-5050

Sales tax is imposed at the retail level. Use tax is imposed on tangible personal property purchased for storage or use in Nevada on which Nevada sales tax was not paid at the time of purchase. Nevada’s sales/use tax rate is currently from 6 ½ percent to 7 ¼ depending upon the county. Sales and use tax is one of the largest taxes administered by the Department. Questions concerning taxability, filing requirements, exemptions, security bonds and others often arise. For help and to insure you are recording and remitting your sales and use tax correctly. If you need further assistance, please contact your nearest District Office.

A person who maintains a business or intends to locate a business in Nevada may be eligible for a partial exemption from the local school support tax and the county/city relief tax on the gross receipts from the sale, and the storage, use or other consumption, of eligible machinery or equipment for use by a business. The exemption would apply to all but 2 percent of the taxes incurred on eligible purchases. Businesses must meet qualifying criteria and must be consistent with Nevada goals for economic development and diversification.  The Commission on Economic Development must approve all applications for this tax abatement. If an application is approved, the taxpayer is eligible for the tax abatement for two years. The Department of Taxation administers the abatement plan after it receives notification of certification.

Nevada allows for deferred payment of sales or use tax on the purchase of capital goods if the purchase is for equipment that will help to create new jobs or prevent the loss of existing jobs. The purchase or purchases must total at least $100,000 in a one-year period with the interest-free payment schedule for the sales tax ranging from 12 months for a $100,000 purchase to 5 years for purchases totaling $1 million. Businesses that are certified for a sales tax abatement may also elect to defer the 2 percent tax that is not exempted.  Application for sales tax deferral must be made in advance to the Commission on Economic Development or within 60 days after the date on which the tax was due. The Department of Taxation then sets up the deferred payment plan and administers each deferred tax account.

There is a 6% fee charged on the rental/lease of passenger vehicles rented/leased for a period of 31 days or less. A “passenger vehicle” means a motor vehicle designed to carry 10 persons or less, except motorcycles.

Each person, corporation, partnership, proprietorship, business association and any other similar organization that conducts an
activity for profit must obtain a State of Nevada Business License and pay a one-time license fee of $25. Sole proprietors, with no employees, all non-profit 501 (c) organizations and governmental entities are exempt from the license requirements and the tax. A tax is levied for the privilege of conducting business in Nevada. The tax is based on the total number of full-time equivalent employees performing a service in Nevada and is established at $25 per each full-time equivalent employee per quarter. The tax for each calendar quarter is due on the last day of the quarter and must be paid on or before the last day of the following month.

A new business may qualify for a partial exemption if it will have 25 or more full-time employees with an average hourly wage of at least 100 percent of the average statewide hourly wage and a capital investment of $250,000 or more in a county or city whose population is less than 50,000; or, in a county or city whose population is 50,000 or more, a business will have 75 or more full time employees with an average hourly wage of at least 100 percent of the average statewide hourly wage and makes a $1 million or more capital investment. An existing business may qualify for a partial exemption if it meets at least two of the following requirements:

  1. Increase number of employees by 10 percent more than it employed
    in the immediately preceding fiscal year or by six employees, whichever
    is greater.
  2. Will expand by making a capital investment in this state
    in an amount equal to at least 20 percent of the value of the tangible
    property possessed by the business in the immediately preceding fiscal
    year.
  3. The average hourly wage that will be paid by the existing business
    to its new employees in this state is at least 100 percent of the average
    statewide hourly wage.

Businesses that are consistent with the Commission on
Economic Development’s plan for economic diversification and development
and meet the above requirements may qualify for a partial exemption of
80 percent in the first year of operation, 60 percent the second year,
40 percent the third year, and 20 percent the fourth year. For additional
information contact the
Commission on Economic Development,
108 E. Proctor
Carson City, Nevada 89710
or telephone in-state 775-687-4325, out of
state 1-800-336-1600

Tires sold at retail are subject to a $1.00 per tire surcharge fee.

For information regarding registration and current
tax rates, contact:
Department
of Employment, Training and Rehabilitation, Division of Employment Security
,
500 E. Third Street,
Carson City, NV 89713
Telephone: 775-687-4545