Tax law changes and your business: What you need to know
On June 10, 2015, Governor Sandoval signed SB 483, a package of tax changes which includes $1.1 billion in new and extended taxes over the biennium, which will affect many businesses and individuals.
The tax package includes a higher cigarette tax, an increase in the corporation annual business license fee, a change in the governmental service tax, an increase in the modified business tax and a new commerce tax on the gross receipts of businesses with an excess of $4 million in revenues. With the new tax package, the MBT will increase from 1.17 percent to 1.475 percent for nonfinancial institutions. In addition, the wage threshold will drop from $85,000 per quarter to $50,000 per quarter. Perhaps the most complex is the commerce tax, which is levied on business entities with gross revenues generated in Nevada in excess of $4 million per taxable year less certain exclusions and deductions. One note: Sectors that already pay a Nevada gross receipts tax (gaming, mining and insurance) could exclude from the commerce tax any revenue subject to those taxes. There are several other exclusions written into the law as well. Contact a licensed CPA for more information on how these changes will affect you and your business.
Jim Clausen, CPA, is a partner with Reno-based Clausen & Company.
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