An Introduction to the Nevada Commerce Tax

On June 9, 2015, Gov. Brian Sandoval signed Nevada Senate Bill (S.B.) 483 into law. Among other things, S.B. 483 contains a new generally applicable gross receipts tax (the commerce tax), which was effective July 1, 2015.1 Although the tax has many features in common with the other generally applicable state gross receipts taxes, it presents a number of new and potentially problematic issues. With the imposition of the commerce tax, S.B. 483 also makes some significant changes to Nevada’s payroll taxes.

The discussion that follows is broadly divided into two sections. The first section introduces the commerce tax and a discussion of problematic issues. The second section includes an analysis of how the tax compares with the other relatively recently enacted state gross receipts taxes, as well as an analysis of how the tax compares with the tax regimes of Nevada’s neighboring states.