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nv-commerce-tax.md238 lines11.1 KB
v1Nevada
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| 1 | --- |
| 2 | name: nv-commerce-tax |
| 3 | description: > |
| 4 | Use this skill whenever asked about the Nevada Commerce Tax. Trigger on phrases like |
| 5 | "Nevada Commerce Tax", "NV Commerce Tax", "NRS 363C", "Nevada gross receipts tax", |
| 6 | "NV business tax", "Nevada $4 million threshold". This tax applies to business entities |
| 7 | with Nevada gross revenue exceeding $4 million per taxable year. |
| 8 | jurisdiction: US-NV |
| 9 | version: "0.1" |
| 10 | validation_status: ai-drafted-q3 |
| 11 | --- |
| 12 | |
| 13 | # Nevada Commerce Tax Skill |
| 14 | |
| 15 | > **Scope.** This skill covers the Nevada Commerce Tax (NRS Chapter 363C), a gross |
| 16 | > receipts tax imposed on business entities with Nevada gross revenue exceeding |
| 17 | > $4,000,000 in a taxable year. Rates range from 0.051% to 0.331% depending on |
| 18 | > the business category (NAICS code). The taxable year runs July 1 – June 30. |
| 19 | > |
| 20 | > **Quality tier.** Q3 — AI-drafted, not independently verified. All outputs must be |
| 21 | > reviewed by a qualified tax professional before filing. |
| 22 | |
| 23 | --- |
| 24 | |
| 25 | ## Section 1: Metadata |
| 26 | |
| 27 | | Field | Value | |
| 28 | |---|---| |
| 29 | | Tax type | Gross receipts tax (Commerce Tax) | |
| 30 | | Jurisdiction | Nevada (US-NV) | |
| 31 | | Taxable year | July 1 – June 30 (fiscal year) | |
| 32 | | Primary form | Commerce Tax Return | |
| 33 | | Tax structure | Industry-specific flat rates applied to gross revenue above $4M threshold | |
| 34 | | Rate range | 0.051% – 0.331% (26 business categories) | |
| 35 | | Filing deadline | August 14 (45 days after fiscal year-end) | |
| 36 | | Revenue threshold | $4,000,000 NV gross revenue | |
| 37 | | Tax authority | Nevada Department of Taxation | |
| 38 | | Website | https://tax.nv.gov | |
| 39 | | Statute | NRS Chapter 363C | |
| 40 | |
| 41 | **Sources:** |
| 42 | - NRS 363C.100–363C.560 (Commerce Tax statutory provisions) |
| 43 | - Nevada Department of Taxation, Commerce Tax Return Instructions: https://tax.nv.gov |
| 44 | - Tax Foundation, "Nevada Approves Commerce Tax" (2015 analysis) |
| 45 | - AB 594 (2025 session — updated to 2022 NAICS edition) |
| 46 | |
| 47 | --- |
| 48 | |
| 49 | ## Section 2: Quick reference — rates by business category |
| 50 | |
| 51 | ### Complete NAICS category rate table |
| 52 | |
| 53 | | Business category | NAICS code(s) | Tax rate | |
| 54 | |---|---|---| |
| 55 | | Agriculture, forestry, fishing, hunting | 11 | 0.063% | |
| 56 | | Mining, quarrying, oil and gas extraction | 21 | 0.051% | |
| 57 | | Utilities and telecommunications | 22, 517 | 0.136% | |
| 58 | | Construction | 23 | 0.083% | |
| 59 | | Manufacturing | 31, 32, 33 | 0.091% | |
| 60 | | Wholesale trade | 42 | 0.101% | |
| 61 | | Retail trade | 44, 45 | 0.111% | |
| 62 | | Air transportation | 481 | 0.058% | |
| 63 | | Rail transportation | 482 | 0.331% | |
| 64 | | Truck transportation | 484 | 0.202% | |
| 65 | | Other transportation | 483, 485, 486, 487, 488, 491, 492 | 0.129% | |
| 66 | | Warehousing and storage | 493 | 0.128% | |
| 67 | | Publishing, software and data processing | 512, 513, 516, 518 | 0.253% | |
| 68 | | Finance and insurance | 52 | 0.111% | |
| 69 | | Real estate and rental and leasing | 53 | 0.250% | |
| 70 | | Professional, scientific and technical services | 54 | 0.181% | |
| 71 | | Management of companies and enterprises | 55 | 0.137% | |
| 72 | | Administrative and support services | 561 | 0.154% | |
| 73 | | Waste management and remediation services | 562 | 0.261% | |
| 74 | | Educational services | 61 | 0.281% | |
| 75 | | Health care and social assistance | 62 | 0.190% | |
| 76 | | Arts, entertainment and recreation | 71 | 0.240% | |
| 77 | | Accommodation | 721 | 0.200% | |
| 78 | | Food services and drinking places | 722 | 0.194% | |
| 79 | | Other services | 81 | 0.142% | |
| 80 | | Unclassified | 519, 92 | 0.128% | |
| 81 | |
| 82 | ### Key thresholds |
| 83 | |
| 84 | | Item | Value | |
| 85 | |---|---| |
| 86 | | Revenue threshold | $4,000,000 NV gross revenue | |
| 87 | | Filing threshold | Same — no filing required if NV gross revenue ≤ $4M | |
| 88 | | Minimum rate | 0.051% (mining) | |
| 89 | | Maximum rate | 0.331% (rail transportation) | |
| 90 | | Unclassified rate | 0.128% | |
| 91 | |
| 92 | --- |
| 93 | |
| 94 | ## Section 3: How the Commerce Tax works |
| 95 | |
| 96 | ### Who must pay |
| 97 | |
| 98 | Any **business entity** engaging in business in Nevada whose Nevada gross revenue exceeds $4,000,000 in a taxable year (July 1 – June 30). This includes: |
| 99 | |
| 100 | - Corporations (C-corps and S-corps) |
| 101 | - LLCs (including single-member LLCs) |
| 102 | - Partnerships |
| 103 | - Sole proprietors |
| 104 | - Business trusts |
| 105 | |
| 106 | ### Computation |
| 107 | |
| 108 | ``` |
| 109 | Commerce Tax = (NV Gross Revenue − $4,000,000) × Industry Tax Rate |
| 110 | ``` |
| 111 | |
| 112 | **Example:** A professional services firm (NAICS 54) with $6,000,000 in NV gross revenue: |
| 113 | - Taxable amount: $6,000,000 − $4,000,000 = $2,000,000 |
| 114 | - Tax rate: 0.181% |
| 115 | - Commerce Tax: $2,000,000 × 0.00181 = **$3,620** |
| 116 | |
| 117 | ### Taxable year |
| 118 | |
| 119 | The Commerce Tax uses a **fiscal year** running July 1 through June 30 — not the calendar year. The return is due by **August 14** (45 days after the June 30 year-end). |
| 120 | |
| 121 | ### Nevada gross revenue |
| 122 | |
| 123 | Nevada gross revenue means the total amount realized by a business entity from engaging in business in Nevada. It includes: |
| 124 | |
| 125 | - Gross receipts from sales of goods or services in NV |
| 126 | - Rents and royalties from NV property |
| 127 | - Other income attributable to NV business activity |
| 128 | |
| 129 | **Exclusions from NV gross revenue:** |
| 130 | - Revenue already subject to gaming tax, insurance premium tax, or mining tax |
| 131 | - Distributions from pass-through entities (to avoid double-counting) |
| 132 | - Stock proceeds |
| 133 | - Bad debts expensed on the federal return |
| 134 | - Net income from a passive entity to the extent generated by another entity |
| 135 | |
| 136 | ### Business category determination |
| 137 | |
| 138 | If a business operates in multiple NAICS categories, it is classified in the category that generates the **highest percentage** of its Nevada gross revenue. You cannot split revenue across multiple categories — one rate applies to the entire taxable amount. |
| 139 | |
| 140 | To change your NAICS code category from a prior year, you must obtain permission from the Department using the NAICS Code Category Change form. |
| 141 | |
| 142 | --- |
| 143 | |
| 144 | ## Section 4: Self-employed / sole proprietor specific rules |
| 145 | |
| 146 | ### When does the Commerce Tax affect sole proprietors? |
| 147 | |
| 148 | Most sole proprietors will **not** owe Commerce Tax because their Nevada gross revenue is below $4,000,000. However, sole proprietors with high-revenue businesses (e.g., large consulting practices, real estate operations, wholesale/retail operations) may be subject to it. |
| 149 | |
| 150 | ### Interaction with federal taxes |
| 151 | |
| 152 | - Commerce Tax paid is **deductible** as a business expense on federal Schedule C. |
| 153 | - The Commerce Tax is not creditable against any other Nevada tax (except a partial credit against the Modified Business Tax / payroll tax, which only applies to employers with employees). |
| 154 | - Nevada has **no state income tax**, so there is no state income tax return to file. |
| 155 | |
| 156 | ### Modified Business Tax (MBT) credit |
| 157 | |
| 158 | Businesses that pay Commerce Tax may claim a credit against the Modified Business Tax (NV's payroll tax) equal to the Commerce Tax paid, up to the amount of MBT owed. This prevents double taxation for businesses subject to both. For sole proprietors with no employees, MBT does not apply and this credit is irrelevant. |
| 159 | |
| 160 | --- |
| 161 | |
| 162 | ## Section 5: Tier 1 rules — deterministic |
| 163 | |
| 164 | | Rule ID | Rule | Source | |
| 165 | |---|---|---| |
| 166 | | NV-T1-01 | Commerce Tax applies to business entities with NV gross revenue > $4,000,000 | NRS 363C.200 | |
| 167 | | NV-T1-02 | Tax = (NV gross revenue − $4,000,000) × NAICS category rate | NRS 363C.300 | |
| 168 | | NV-T1-03 | Taxable year is July 1 – June 30 | NRS 363C.050 | |
| 169 | | NV-T1-04 | Return due August 14 (45 days after year-end) | NRS 363C.200 | |
| 170 | | NV-T1-05 | Business category = the NAICS category generating the highest % of NV revenue | NRS 363C.097 | |
| 171 | | NV-T1-06 | No filing required if NV gross revenue ≤ $4,000,000 | NRS 363C.200 | |
| 172 | | NV-T1-07 | Commerce Tax paid may be credited against Modified Business Tax (payroll tax) | NRS 363C.300 | |
| 173 | | NV-T1-08 | Revenue from gaming, insurance premiums, and mining already taxed under other chapters is excluded | NRS 363C.300 | |
| 174 | | NV-T1-09 | Rates range from 0.051% (mining) to 0.331% (rail transportation) | NRS 363C.310–363C.560 | |
| 175 | | NV-T1-10 | Unclassified businesses taxed at 0.128% | NRS 363C.560 | |
| 176 | |
| 177 | --- |
| 178 | |
| 179 | ## Section 6: Tier 2 rules — requires judgment |
| 180 | |
| 181 | | Rule ID | Situation | Guidance | |
| 182 | |---|---|---| |
| 183 | | NV-T2-01 | **Multi-category business:** Business operates across multiple NAICS codes | Must classify under the single category generating the highest % of NV gross revenue. Cannot split. | |
| 184 | | NV-T2-02 | **Pass-through entity distributions** | Distributions from other entities should be excluded from NV gross revenue to avoid double taxation. Verify the exclusion applies to each distribution type. | |
| 185 | | NV-T2-03 | **Revenue sourcing** | Only revenue attributable to Nevada business activity is included. Multi-state businesses must determine NV-sourced revenue. | |
| 186 | | NV-T2-04 | **MBT credit optimization** | Businesses paying both Commerce Tax and MBT should optimize the credit to minimize total NV tax burden. | |
| 187 | | NV-T2-05 | **Fiscal year timing** | The July 1 – June 30 fiscal year does not align with most businesses' calendar year. Revenue tracking must be aligned to the Commerce Tax fiscal year. | |
| 188 | | NV-T2-06 | **Approaching threshold** | Businesses approaching $4M in NV gross revenue should monitor carefully — once the threshold is crossed, the tax applies to all revenue above $4M. | |
| 189 | |
| 190 | --- |
| 191 | |
| 192 | ## Section 7: Supplier pattern library |
| 193 | |
| 194 | | Input needed | Where to find it | |
| 195 | |---|---| |
| 196 | | NV gross revenue | Business financial records (revenue attributable to NV activity, July 1 – June 30) | |
| 197 | | NAICS code | Business registration / prior Commerce Tax returns / census.gov NAICS lookup | |
| 198 | | Exclusions (pass-through distributions, stock proceeds, etc.) | Financial records, K-1s from partnerships | |
| 199 | | Modified Business Tax payments | NV MBT returns (for credit computation) | |
| 200 | | Prior year NAICS category | Prior year Commerce Tax return | |
| 201 | |
| 202 | --- |
| 203 | |
| 204 | ## Section 8: Form mapping |
| 205 | |
| 206 | | Commerce Tax Return Line | Description | Source | |
| 207 | |---|---|---| |
| 208 | | Line 1 | Business entity NAICS code category | NAICS classification | |
| 209 | | Line 2 | Total Nevada gross revenue | Business financial records | |
| 210 | | Lines 3–26 | Subtractions (pass-throughs, exclusions) | Financial records | |
| 211 | | Line 27 | Taxable Nevada gross revenue above $4M threshold | Computed | |
| 212 | | Line 28 | Tax rate per NAICS code category | Rate table | |
| 213 | | Line 29 | Commerce Tax due | Line 27 × Line 28 | |
| 214 | | Line 30 | Penalty (if applicable) | 10% of tax due if late | |
| 215 | | Line 31 | Interest (if applicable) | Computed | |
| 216 | | Line 32 | Total amount due | Line 29 + Line 30 + Line 31 | |
| 217 | |
| 218 | --- |
| 219 | |
| 220 | ## Section 9: Refusal catalogue |
| 221 | |
| 222 | | Refusal ID | Trigger | Response | |
| 223 | |---|---|---| |
| 224 | | R-NV-01 | Income tax question | "Nevada does not have a state income tax. The Commerce Tax is a gross receipts tax, not an income tax." | |
| 225 | | R-NV-02 | Modified Business Tax computation | "The MBT (payroll tax) is a separate tax. This skill covers only the Commerce Tax." | |
| 226 | | R-NV-03 | Gaming tax | "Nevada gaming taxes (NRS Chapter 463) are not covered by this skill." | |
| 227 | | R-NV-04 | Mining tax | "Nevada mining taxes (Net Proceeds of Minerals) are not covered by this skill." | |
| 228 | | R-NV-05 | Business license fee | "The annual $500 NV business license fee (NRS 76) is separate from the Commerce Tax and not covered here." | |
| 229 | | R-NV-06 | Sales tax computation | "Nevada sales tax is covered in nv-sales-tax.md, not this skill." | |
| 230 | |
| 231 | --- |
| 232 | |
| 233 | ## Disclaimer |
| 234 | |
| 235 | This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon. |
| 236 | |
| 237 | The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). |
| 238 |
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Quality
Q3: AI-drafted
AI-generated with structure and citations. Not independently verified.
Needs deep research against tax authority websites to reach Q2.
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About
Use this skill whenever asked about the Nevada Commerce Tax. Trigger on phrases like "Nevada Commerce Tax", "NV Commerce Tax", "NRS 363C", "Nevada gross receipts tax", "NV business tax", "Nevada $4 million threshold". This tax applies to business entities with Nevada gross revenue exceeding $4 million per taxable year.
US-NVty-2025
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