IREM Las Vegas | Page 12

Nevada Tax Reform Update (continued) Filing period and due dates: The taxable year for assessment of the Nevada commerce tax is the 12-month period from July 1 to June 30. The returns will be due on or before the 45th day following the end of the taxable year. The first payments will therefore due August 15, 2016 for the period July 1, 2015 through June 30, 2016. Taxpayers may request a 30-day extension to pay the tax. No penalties will apply during the 30-day extension, but interest will be assessed. Payroll Tax Broadened and Increased: The Modified Business Tax (MBT) is currently imposed on businesses other than financial institutions in the amount of 1.17 percent of wages paid above an exemption level of $85,000 per quarter. Financial institutions pay a higher rate of 2 percent. Under the new law, the MBT will increase from 1.17 percent to 1.475 percent for most businesses and the exemption is reduced to $50,000 per quarter. Mining companies will join financial institutions in paying the higher 2 percent tax rate. After the first year in which the commerce tax is in effect, taxpayers may deduct up to 50 percent of their commerce tax payments from their MBT liability. Each year’s deduction for the commerce tax payments will be applied to the following four quarters MBT liability. If the deduction is not fully utilize during those quarters, it expires. Should total revenue from all business taxes exceed projections by more than four percent, the MBT rate will be adjusted downward, but not below 1.17 percent. Live Entertainment Tax Reformed: Nevada’s Live Entertainment Tax (LET) is imposed on admission, food and b