Last week, Nevada enacted a new Commerce tax that is based on gross revenue assigned to Nevada. (The definition of Nevada gross revenue includes all sales of tangible products shipped to a buyer in Nevada, services performed for Nevada entities, and gross rents from real property if property is located in Nevada.)
Important information regarding this new tax includes:
Begins July 1st, 2015.
- Tax applies to all Nevada gross revenue exceeding 4 million.
- Applied on a fiscal year basis beginning July 1st and ending June 30th.
- Annual tax returns are due August 15th.
- Rates range from .051% to .331% depending on industry in which entity is primarily engaged.
- Very limited subtractions available in calculating taxable receipts. (No cost of goods sold deduction available.)
If you have significant Nevada source income you need to be aware of this new law and start tracking Nevada gross receipts beginning July 1st.
The SALT team will send out additional information as it becomes available. Please contact your Somerset advisor with any questions.