UPDATE: August 1, 2016
Welp, despite the Margin Tax having been soundly defeated by Nevada voters last November (see below), we are now stuck with the Nevada Commerce Tax. It’s not as onerous a tax, but bears enough resemblance to the Margin Tax that many small business owners have posted legislators’ headshots to their office dartboards.
So, what does the Nevada Commerce Tax say? Basically, it applies to any business in Nevada that generates more than $4,000,000.00 in a fiscal year. Those businesses will pay a tax, the amount of which depends on the type of business it is, based on its NAICS code. The saving grace (sorta) is that this threshold exempts from the tax most of the businesses registered in Nevada. However, don’t get too comfortable, because, even if your revenue falls under that threshold, you are still required to file a return. Yes, there are exemptions – you don’t have to file if you’re a non-profit, or a natural person.
Try not to panic. If your business generates less than $4m, you’ll check the first box you find on the form, and then “skip lines 1-35,” check that you aren’t lying, then sign and return. It’s pretty easy, but yet one more thing on your to-do list.
Returns are due each year on 8/15. You can submit a form you received in the mail, or you may complete and submit your return online.
More information can be found here.
What’s Wrong with the Margin Tax?
UPDATE: November 4, 2014
Thankfully, the voters SOUNDLY defeated the Margin Tax aka “The Education Initiative.” This means we business owners can breathe a collective sigh of relief that we won’t have our revenues taxed regardless of whether we’re operating in the red, and that we can continue to enjoy the economic recovery without getting cut off at the knees.
I so appreciate everyone who helped spread the word about this initiative and gave me opportunities to speak about it.
Go Nevada and go business!