The strength of the Nevada economy is in large part due to a favorable business tax structure. The absence of a Corporate Income tax AND absence of a Personal Income Tax mitigate the effects of the recession on commercial real estate properties in Las Vegas.  Economic growth driven by businesses attracted by the favorable tax climate has helped stabilize the Las Vegas market even in these difficult times.

ALCOHOLIC BEVERAGE
Excise tax on importation, processing, storing or selling of all liquor (including beer). Malt beverages are taxed at 16 cents per gallon and liquor is taxed from 70 cents to $3.60 per gallon depending on the alcohol content. Sales tax is collected on the retail price. A state license fee of $100 is paid annually.

BUSINESS LICENSE
Officially referred to as the Governmental Services Fee.

CAR RENTAL
The state fee is imposed at 6 percent on the short-term rental of a passenger car. Both Clark and Washoe counties levy an additional 2 percent for authorized projects. In addition, a 4 percent surcharge is authorized to be levied and retained by the lesser to cover licensing fees.

CIGARETTE/TOBACCO PRODUCTS
Excise tax on cigarettes is 4 cents per cigarette, which equates to 80 cents per package of 20.  Other tobacco products are taxed at 30 percent of the wholesaler’s cost. Sales tax is also collected on the retail price.

CORPORATE FEES
Fees for filing articles of incorporation or agreements of consolidation providing for shares apply in Nevada. The rate is based on the value of the shares with a minimum fee of $75 and a maximum fee of $35,000 (example: total value of shares – $75,000 or less the fee is $75; $200,000 or less the fee is $175; total value of shares over $l million is $385 plus $275 for each additional S500,000 or fraction thereof not to exceed 25,000). Fees for the Annual Filing are the same as for filing the articles of incorporation; however, the maximum fee is $11,100. Non par value stock is assigned a value of $1 per share for the purpose of computing the fee. Fees are the same for domestic and foreign corporations.

GAMING
There are five principle types of gaming taxes. Gross gaming revenue tax, table tax and slot taxes are levied by the state. In addition, gaming fees are levied by the county and local governments. For more information contact the Gaming Control Board.

INDUSTRIAL INSURANCE
Industrial insurance is obtained through private insurance carriers, self-insurance or group self-insurance. For more information about self insurance or group self-insurance contact the Nevada Insurance Division.

INSURANCE PREMIUM
Insurers pay 3.5 percent of the total direct premiums written for the preceding calendar year covering property and other risks in the state. Risk retention groups registered in Nevada, but chartered in another state pay a rate of 2 percent. The tax is due on actual premiums received in the garter with payment due 30 days following the end of the quarter.
 

LIVE ENTERTAINMENT
Imposed at locations where live entertainment is provided for which there is an admission, cover or table charge. The rate is 10 pert occupancy at a facility is less than 7500 and that rate is also imposed on food merchandise. If the maximum occupancy or more, the rate is 5 percent and is not imposed on food, beverage or merchandise. For non gaming establishments there is no tax imposed if the maximum occupancy is less than 200.

LODGING
A statewide tax of 1 percent of gross receipts is imposed on the rental of hotel and motel rooms.  This is in addition to any locally imposed room taxes which range from 3 to 15 percent.

MODIFIED BUSINESS TAX
The tax is based on gross payroll paid in the calendar quarter imposed on businesses in Nevada who are required to make unemployment insurance contributions to the Nevada Department of Employment Security. There are two categories: General Business employers pay a tax rate of 0.63 percent; Financial Institutions pay a rate of 2 percent. The employer can deduct any costs for providing a qualified employer-paid health care plan. Note: The General Business tax rate increases to 0.65 percent effective July 1, 2007.

MOTOR VEHICLE FUEL
Gasoline and gasohol are taxed at 23 cents per gallon. Additional county taxes range from 5 cents to 10 cents per gallon. Diesel, butane and kerosene are 27 cents per gallon, liquid petroleum is 22 cents per gallon, compressed natural gas is 21 cents per gallon and water-phased fuel is 19 cents per gallon.

MOTOR VEHICLE
Fees are annual and must be paid on all vehicles at the time of registration.

GOVERNMENTAL SERVICE TAX
This tax is in lieu of personal property tax. The valuation of the vehicle is determined at 35 percent of the manufacturer’s suggested retail price, without accessories. Vehicle value is depreciated to 85 percent after the first year and graduated down to 5 percent after nine years. Buses, trucks and truck trailers depreciate down to 75 percent after the first year and down to 13 percent after 10 years. The rate imposed by the state is 4 cents on each S1 valuation. Counties may levy up to one cent on each dollar of valuation, but the total tax imposed cannot exceed 5 cents on each dollar of valuation.

REGISTRATION
Passenger cars, motorcycles, travel trailers, low speed and electric vehicles and trucks with a gross vehicle weight less than 6,000 pounds pay depending on the valuation of the car. Rates on trucks vary from a low of $38 for a truck with a gross weight of 6,000 pounds to a maximum of 51,360 for a truck with a gross weight of 80,000 pounds.

PROPERTY
State statutes limit the property tax rate to a total of $3.64 per $100 of assessed valuation. Assessment is at 35 percent of taxable value. The tax is applied to the assessed value. Property tax rates may vary within the city and county, due to special districts or general improvement districts such as fire control districts, library districts and television districts. The tax bill is capped at a maximum increase of 3 percent over the prior year for an owner-occupied residence, and a maximum increase of 8 percent for all other real and personal property.

REAL PROPERTY
Includes land, buildings and improvements not normally removable. The taxable value for land is full cash value. The value for improvements is replacement costs less depreciation at 1.5 percent per year up to 50 years.

PERSONAL PROPERTY
Includes property not permanently affixed to land, such as business equipment and mobile/ manufactured homes not converted to real property. Assessment is 35 percent of original cost less depreciation.

SALES AND USE
Sales tax is charged at the retail level on the sale of tangible personal property unless exempt by statute. A companion “use” tax is charged on property purchased outside of Nevada and brought into the state for use. The maximum State rate is 6.5 percent. Counties are allowed various options to pay for items such as transportation, roads, flood control and water. In Clark County the total combined rate is 8.1 percent.

UNEMPLOYMENT INSURANCE
Paid by employers of one or more persons with total wages paid of S225 or more during a calendar quarter. For the first 14 quarters as an employer in Nevada, the total rate is 3 percent. Thereafter, it may vary from 0.3 percent to 5.4 percent depending on the number of employees and the firm’s unemployment record. The maximum wage base upon which the rate is applied changes annually. For 2007, the maximum wage base is $24,600.

UNIVERSAL ENERGY CHARGE
The tax is assessed on each therm of natural gas or kilowatt hour of electricity consumed in Nevada. The rate is 3.30 mills per therm of natural gas and .39 mills per kilowatt-hour of electricity. If tax collected exceeds $25,000 in any calendar quarter, a refund for the amount over $25,000 may be requested. The tax is distributed to the Welfare Division and is further distributed 25 percent to the Nevada Housing Division for weatherization. The Welfare Division uses the remaining 75 percent for energy assistance to low-income households. The tax is remitted within 30 days after the end of each calendar quarter. As a pass-through, the tax is itemized on each customer’s billing statement as a separate line item.