Nevada Wises Up on Exempt Commerce Tax Companies

Nevada has a tax on businesses called the “Commerce Tax.” This tax impacts businesses with gross receipts of $4 million or more. If your Nevada business makes less than that, you don’t owe the tax. However, you still had to file a return stating that you didn’t owe the tax.

The state legislature wised up on this:

The 80th (2019) Nevada Legislative session has changed the filing requirement for Commerce Tax. Pursuant to Senate Bill 497, businesses whose Nevada gross revenue for the 2018-2019 taxable year is $4,000,000 or less, are no longer required to file a commerce tax return.

Businesses whose Nevada gross revenue for the 2018-2019 taxable year is over $4,000,000 are still required to file a commerce tax return by August 14, 2019.

I received an email notifying me of this:

This e-mail is to inform you that the filing requirement for Commerce Tax has been changed. If the Nevada gross revenue of your business from July 1, 2018 through June 30, 2019 was $4,000,000 or less, your business is no longer required to file a Commerce Tax return and your Commerce Tax Account will be automatically closed, effective June 30, 2019.

If the Nevada gross revenue for your business from July 1, 2018 through June 30, 2019 was over $4,000,000, your business is still required to file a Commerce Tax return on or before August 14th, 2019.

In the event your Nevada gross revenue exceeds the $4,000,000 threshold in a future year, it is your responsibility to file a return for the year. Failure to do so may result in the assessment of penalty and interest.

It had to cost something for the Department of Taxation to process the $0 returns (which is what most businesses file); Nevada will now save that processing cost. And that’s one less form I have to file. This is a win-win for Nevada and its businesses.

Leave a Reply