First round of Nevada Modified Business Tax refunds issued

The Nevada Supreme Court building Monday, March 4, 2019.

The Nevada Supreme Court building Monday, March 4, 2019. Photo: David Calvert / The Nevada Independent

In accordance with a May 13 Nevada Supreme Court decision that found Senate Bill 551 passed during the 2019 Legislative Session was unconstitutional, the Nevada Department of Taxation has issued the first round of refund checks.

A total of $30.6 million, including interest, was refunded to 22,621 taxpayers who paid the tax at a rate higher than the statutory requirement, according to an Aug. 17 press release from the state.

Refunds are for quarters ending Sept. 30, 2019, through March 31, 2021, for General Businesses, Financial Institutions and Mining.

The next round of refunds is scheduled for September.

According to media reports, the legal dispute over Senate Bill 551 emerged when the Democrat-led Senate passed a bill in the 2019 session that extended a higher rate for the modified business tax (payroll tax) that was otherwise set to revert to a lower level. The proposal initially failed to garner a two-thirds majority when all Republicans opposed it, but Democrats then amended the bill by removing the two-thirds requirements and passed it.

In terms of refunds, according to the state, Nevada law requires the taxation department verify a credit is valid before the amount can be refunded; therefore, the taxpayer’s account must be up to date before any refund can be issued.

Taxpayers who have any delinquent tax returns, including sales/use tax, modified business tax, commerce tax, or excise tax are encouraged to file the return(s) by U.S. Mail or use Nevada Online Tax here.

All delinquent tax returns must be filed before a refund amount can be issued.


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