NevadaAB27683rd Regular Session (2025)HouseWALLET

AN ACT relating to taxation; increasing and providing for the adjustment of the gross revenue threshold above which the gross revenue of a business entity is subject to the commerce tax; prohibiting the payment of interest on an overpayment of commerce tax resulting from the use of a gross revenue threshold other than the adjusted threshold calculated and published by the Department of Taxation; and providing other matters properly relating thereto.

Sponsored By: Jill Dickman (Republican), PK O’Neill (Republican)

Failed

BDR 32-192

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Inflation-linked tax relief for Nevada businesses

Beginning July 1, 2025, Nevada businesses owe commerce tax and must file returns only when Nevada revenue exceeds the threshold. The first threshold equals $4 million plus $4 million times the average annual inflation rate over the preceding three calendar years. The law uses the Consumer Price Index for All Urban Consumers, West Region, All Items, and rounds to the nearest $100,000. Each later year's threshold rises by that three-year average when positive; a negative average leaves it unchanged. Businesses pay tax only on revenue above the adjusted threshold, replacing the fixed $4 million subtraction. Rates remain 0.200% for accommodation, 0.194% for food services and drinking places, 0.142% for other services, and 0.128% for unclassified businesses. The Department of Taxation publishes the first threshold within 30 days after July 1, 2025. Afterward, it publishes thresholds by March 1 for the following July 1 and can choose a substitute index if needed.

Businesses lose interest for tax threshold errors

Beginning July 1, 2025, Nevada's Department of Taxation cannot pay interest on certain commerce tax overpayments. This applies when the Department finds that an overpayment resulted from using a threshold other than its calculated, published threshold. The restriction concerns interest, not the overpaid tax itself.

Sponsors & Cosponsors

Sponsors

  • Jill Dickman

    Republican • House

  • PK O’Neill

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. (No further action taken.)

    6/3/2025House
  2. To committee.

    4/24/2025House
  3. From printer. To engrossment. Engrossed. First reprint.

    4/24/2025House
  4. To printer.

    4/21/2025House
  5. Rereferred to Committee on Ways and Means. Exemption effective.

    4/21/2025House
  6. Taken from General File.

    4/21/2025House
  7. Read second time. Amended. (Amend. No. 469.)

    4/21/2025House
  8. Placed on Second Reading File.

    4/21/2025House
  9. From committee: Amend, and do pass as amended.

    4/21/2025House
  10. Notice of eligibility for exemption.

    3/10/2025House
  11. From printer. To committee.

    2/25/2025House
  12. Read first time. Referred to Committee on Revenue. To printer.

    2/24/2025House

Bill Text

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