Modified Business Tax

This is the standard quarterly return for reporting the Modified Business Tax for General Businesses. Effective July 1, 2023 the tax rate changes to 1.17% from 1.378%. There are no changes to the threshold of the sum of all taxable wages after deductions, currently at $50,000, or the Commerce Tax credit. On May 13, 2021, the Nevada Supreme Court upheld a decision that Senate Bill 551, which was passed during the 2019 Legislative Session, removing the biennial Modified Business Tax rate adjustment and repealing NRS 360.203 was unconstitutional.

This is the standard quarterly return for reporting the Modified Business Tax for Financial Institutions as defined by NRS 360A.050. Effective July 1, 2023 the tax rate changes to 1.554% from 1.853%. There are no changes to the Commerce Tax credit. On May 13, 2021, the Nevada Supreme Court upheld a decision that Senate Bill 551, which was passed during the 2019 Legislative Session, removing the biennial Modified Business Tax rate adjustment and repealing NRS 360.203 was unconstitutional.

This is the standard quarterly return for reporting the Modified Business Tax for businesses who are subject to the tax on the Net Proceeds of Minerals imposed pursuant to NRS 362. Effective July 1, 2023 the tax rate changes to 1.554% from 1.853%. There are no changes to the Commerce Tax credit. On May 13, 2021, the Nevada Supreme Court upheld a decision that Senate Bill 551, which was passed during the 2019 Legislative Session, removing the biennial Modified Business Tax rate adjustment and repealing NRS 360.203 was unconstitutional.

This is the standard application to designate an employer in an affiliated group as a payroll provider. According to the Adopted Regulation R123-15, upon the application approval, 50% of the commerce tax paid by other member(s) of the affiliated group can be claimed as a credit against a modified business tax liability incurred by the designated payroll provider. The first application and supporting documentation may be submitted to the Department any time during the year and should then be renewed annually. Instructions are included following the application form.

This form must be completed and submitted to the Department of Taxation with all required back-up documentation to claim a reduction of taxes owed for veteran employees who meets the required criteria. An employer may deduct a veteran employees’ wages from the total amount of wages paid by the employer, during the first four calendar quarters following the hiring of the veteran employee, if you hire a new employee who meets the required criteria on or after July 1, 2015, and on or before June 30, 2019. This reduction of tax owed is effective through July 31, 2022.

During Nevada’s 2015 Legislative Session, Senate Bill No. 412 (SB 412) was passed and signed into law by Governor Sandoval. This bill amended Chapters 363A and 363B of NRS, Modified Business Tax. This program allows any taxpayer who is required to pay the Modified Business Tax pursuant to NRS 363A.130 or 363B.110 who makes a matching contribution to employees participating in a qualified Nevada College Savings Plan or the Nevada Higher Education Prepaid Trust Fund to receive a credit against the tax otherwise due. The credit available to the employer is equal to 25% of the matching contribution, not to exceed $500.00 per contributing employee per year. Employers who are interested in making a qualified donation must file this form and provide verification of the matching contribution made by the employer. Both must be mailed to the Department with the quarterly MBT return filed by the employer showing the credit.

This is the standard quarterly return for reporting the Modified Business Tax for General Businesses. SB 483 of the 2015 Legislative Session became effective July 1, 2015 and changes the tax rate to 1.475 % from 1.17%. Additionally, the new threshold is decreased from $85,000 to $50,000 per quarter. If the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $50,000 for the calendar quarter, the amount of tax is $0. If the sum of all the wages paid by the employer exceeds $50,000 for the calendar quarter, the tax is 1.475% of the amount of the wages that exceeds the $50,000. For example: if the sum of all wages for the 9/15 quarter is $101,000 after health care deductions, the tax is $752.25 ($101,000 – $50,000 = $51,000 x 0.01475). These changes are effective July 1, 2015. A tax return will still need to be filed for any business, even if the taxable wages are less than $50,000 and tax due is $0.

This is the standard quarterly return for reporting the Modified Business Tax for Financial Institutions which now includes a business who is subject to the tax on the Net Proceeds of Minerals imposed pursuant to NRS 362. This return will calculate penalty and interest based on the Date Paid field. For returns that are filed and paid within 30 days of the due date the penalty calculation is on a graduated scale per NAC 360.395. Instructions are included following the return.

This is the standard quarterly return for reporting the Modified Business Tax for businesses who are subject to the tax on the Net Proceeds of Minerals imposed pursuant to NRS 362. This return will calculate penalty and interest based on the Date Paid field. For returns that are filed and paid within 30 days of the due date the penalty calculation is on a graduated scale per NAC 360.395. Instructions are included following the return.

This is the standard quarterly return for reporting the Modified Business Tax for General Businesses. The 2011 Legislative Session pursuant to AB 504, reduced the interest rate to 0.75% (or .0075) from 1% (or .01) effective 7/1/2011. SB475 of the 2013 Legislative Session became effective July 1, 2013. The changes under this bill extend the 0% rate on Tier 1 of the MBT to June 30, 2015. Additionally, the Tier 1 threshold is increased from $62,500 to $85,000. If the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $85,000 for the calendar quarter, the amount of tax is 0% of the sum of those wages. If the sum of all the wages paid by the employer exceeds $85,000 for the calendar quarter, the tax is 1.17% of the amount of the wages that exceeds $85,000. For example: if the sum of all wages for the 9/13 quarter is $101,000 after health care deductions, the tax is $187.20 (0.0117 x $16,000 which is the amount exceeding $85,000). These changes are effective July 1, 2013 and expire June 30, 2015. A tax return will still need to be filed for any business reporting, even if the taxable wages are less than $85,000 and tax due is $0.

This is the standard quarterly return for reporting the Modified Business Tax for Financial Institutions. The 2011 Legislative Session pursuant to AB 504, reduced the interest rate to 0.75% (or .0075) from 1% (or .01) effective 7/1/2011. This return will calculate penalty and interest based on the Date Paid field. For returns with a period end date of 4/30/07 and after, the penalty calculation changes to a graduated scale per NAC 360.395. Instructions are included following the return.