AB 281 — Revises provisions governing the filing of a commerce tax return. (BDR 32-922)

(Reprinted with amendments adopted on April 20, 2017) FIRST REPRINT A.B.

EffectEfEffect on Localthe Government:State:

No.

Effect on the State:

No.

requiringauthorizing athe personDepartment to includerequire witha anbusiness applicationentity forto thefile renewal of a statedeclaration businessunder registrationpenalty certainof informationperjury concerningthat the applicability of the commerce tax imposeddoes onnot theapply Nevadato grossthe revenue of certain business entities;entity;

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) Under existing law and regulations, a business entity whose Nevada gross revenue for a fiscal year is $4,000,000 or less must file an informational return with the Department of Taxation that includes anans must file identification of the industry in which the business entity is primarily engaged and an affirmation under penalty of perjury that the Nevada gross revenue of the sectionbusiness 17entity offor Adoptedthe Reg.fiscal year was less than $4,000,000.

(NRS 363C.200;

section 17 of Adopted Reg.

123-15)C.200;R123-15) This bill provides that a business entity whose Nevada gross revenue for a fiscal year is $4,000,000 or less is not required to file a commerce tax return with the require such a business entity to file a declaration under penalty of perjury that the Nevada gross revenue of the business entity for the preceding taxable year did not exceed $4,000,000.

SectionUnder 1 of this billbill, providessuch that a businessdeclaration entitymust whosebe Nevadafiled: gross revenue for a fiscal year is $4,000,000 or less is not required to file a commerce tax return with the Department.

Instead(1) ofat filing such a return, section 2 of this bill requires a business to include with the applicationtime for the renewal of its state business as to whether the applicant was exempt from the tax for the preceding taxable yearury - *AB281**AB281_R1* – 2 – and,that if the applicantbusiness isentity notrenews exempt,its astate declarationbusiness underlicense; penalty of perjury as to exceeded $4,000,000.ross revenue of the applicant for the preceding taxable year THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

or (2) on or before the 45th day immediately following the end of the taxable year.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

The Department may require a business entity whose Nevada gross revenue for a taxable year is $4,000,000 or less to file a declaration under penalty of perjury by the natural person signing the declaration that the Nevada gross revenue of the business entity for the taxable year did not exceed $4,000,000.

If the Department requires the filing of such a declaration, the business entity must file the declaration either:

(a) At the time that the business entity renews its state business license pursuant to NRS 76.130;

or (b) On or before the 45th day immediately following the end of the taxable year for which the declaration is made.

4.

4.[4.] 5.

Upon written - *AB281_R1* – 3 – application made before the date on which payment of the commerce tax due pursuant to this chapter must be made, the Department may for good cause extend by not more than 30 days the time within which a business entity is required to pay the commerce tax.

If the commerce tax is paid during the period of extension, no penalty or late charge may be imposed for failure to pay the commerce tax at the time required, but the business entity shall pay interest at the rate of 0.75 percent per month from the date on which the amount would have been due without the extension - *AB281* – 3 – until the date of payment, unless otherwise provided in NRS 360.232 or 360.320.

NRS(Deleted 76.130by isamendment.) herebySec. amended to read as follows:

76.130 1.

Except as otherwise provided in subsection 2, a person who applies for renewal of a state business registration shall submit a fee in the amount of $200 to the Secretary of State:

(a) If the person is an entity required to file an annual list with the Secretary of State pursuant to this title, at the time the person submits the annual list to the Secretary of State, unless the person submits a certificate or other form evidencing the dissolution of the entity;

or (b) If the person is not an entity required to file an annual list with the Secretary of State pursuant to this title, on the last day of the month in which the anniversary date of issuance of the state business registration occurs in each year, unless the person submits a written statement to the Secretary of State, at least 10 days before that date, indicating that the person will not be conducting a business in this State after that date.

2.

If the person applying for the renewal of a state business registration pursuant to subsection 1 is a corporation organized pursuant to chapter 78, 78A or 78B of NRS, or a foreign corporation required to file an initial or annual list with the Secretary of State pursuant to chapter 80 of NRS, the fee for the renewal of a state business registration is $500.

A person applying for the renewal of a state business registration shall include on the application for the renewal of the state business registration a declaration under penalty of perjury by the natural person signing the application as to:

(a) Whether the applicant was exempt from the commerce tax for the taxable year immediately preceding the taxable year in which the application is filed;

and (b) If the applicant was not exempt from the commerce tax, whether the Nevada gross revenue of the applicant for the taxable year immediately preceding the taxable year in which the application is filed exceeded $4,000,000.

¬ Nothing in this subsection limits or otherwise affects any requirement imposed pursuant to NRS 363C.200.

4.

The Secretary of State shall, 90 days before the last day for filing an application for renewal of the state business registration of a person who holds a state business registration, provide to the person a notice of the state business registration fee due pursuant to this section and a reminder to file the application for renewal required pursuant to this section.

Failure of any person to receive a notice does not excuse the person from the penalty imposed by law.

- *AB281* – 4 – [4.] 5.

If a person fails to submit the annual state business registration fee required pursuant to this section in a timely manner and the person is:

(a) An entity required to file an annual list with the Secretary of State pursuant to this title, the person: