Existing law imposes an annual commerce tax on each business entity whose gross revenue earned in this State during a fiscal year exceeds $4,000,000. The tax is imposed at a rate based on the industry in which the business entity is primarily engaged. (Chapter 363C of NRS) Existing law exempts from the commerce tax certain real estate investment trusts and qualified real estate investment trust subsidiaries, as those terms are defined by federal law. (26 U.S.C. § 856; NRS 363C.020) This bill removes the exemption from the commerce tax for certain real estate investment trusts and qualified real estate investment trust subsidiaries, thus making the annual commerce tax applicable to all real estate investment trusts and qualified real estate investment trust subsidiaries whose gross revenue earned in this State during a fiscal year exceeds $4,000,000.

Statutes affected:
As Introduced: 363C.020
BDR: 363C.020