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Business Taxes


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.

AD VALOREM
PROPERTY TAX
*
ALCOHOL BEVERAGE
TAX
*
CIGARETTE
TAX
*

CORPORATE
FEES
ESTATE TAX*
GAMING TAX
INCOME TAX
INSURANCE PREMIUM TAX
*

LIQUOR TAX
(See Alcohol Beverage Tax)
*
LODGING TAX (ROOM
TAX)
*
MOTOR CARRIER
FEE

MOTOR
VEHICLE FUEL TAX

NET PROCEEDS
OF MINERALS TAX
*
OIL & GAS
CONSERVATION FEE
SALES AND USE
TAX
*
SALES AND
USE TAX ABATEMENT FROM LOCAL  SCHOOL SUPPORT TAX AND COUNTY/CITY
RELIEF TAX

SALES AND
USE TAX DEFERRAL
SHORT
TERM LESSOR FEES
*
STATE BUSINESS
TAX
*
STATE BUSINESS
TAX ABATEMENT

TIRE SURCHARGE FEE*

UNEMPLOYMENT
COMPENSATION TAX
 

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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.
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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
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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. 
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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.
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The amount of tax is the maximum state credit
allowable against the federal estate tax.
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For information, contact: Gaming
Control Board
, 1919 E. College Parkway, Carson City, Nevada 89706.
Telephone: 775-687-6500.
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Nevada has no personal income tax, per its Constitution.
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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.
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A statewide hotel/motel room tax of 1 percent
is imposed in addition to any similar tax imposed by a local government.
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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.
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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.
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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.
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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. 
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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.
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 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. 

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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.
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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.
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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.
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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.
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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.

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