Existing law imposes an annual commerce tax on each business entity engaged in business in this State whose Nevada gross revenue in a fiscal year exceeds $4,000,000 at a rate that is based on the industry in which the business entity is primarily engaged. (NRS 363C.200) Section 3 of this bill requires that certain business entities that are primarily engaged in the business of renting real property located in this State to other persons be treated as a single business entity for the purposes of the commerce tax. Section 2 of this bill refers to such a group as a “combined taxpayer group,” and section 4 of this bill applies that definition to the provisions of law governing the commerce tax. Under sections 3 and 5 of this bill, for a combined taxpayer group, the applicability of the commerce tax, and the amount of the commerce tax owed, would be determined based on the combined Nevada gross revenue of each business entity that is treated as a member of the combined taxpayer group. Sections 6 and 7 of this bill make the provisions of this bill applicable only to a taxable year that begins on or after July 1, 2025.

Statutes affected:
As Introduced: 363C.010, 363C.020
BDR: 363C.010, 363C.020