The Nevada Legislature has passed a bill that would extend increased rates for various taxes and fees, including the modified business tax and the local school support tax.
Modified Business Tax
If enacted, the bill would make changes affecting the modified business tax rate, which is scheduled to revert on July 1, 2011, to 0.63% of wages paid by a business in each calendar quarter. Specifically, for quarterly wages paid in excess of $62,500, the bill would extend the current 1.17% rate for two years, until June 30, 2013.
The bill would also provide an exemption through June 30, 2013, for quarterly wages not exceeding $62,500.
Local School Support Tax
The temporary increase to the local school support tax rate would be extended until June 30, 2013. The rate was initially increased by 0.35% effective July 1, 2009, and is set to expire on June 30, 2011. The current rate with the temporary increase is 2.6%, and it is set to return to the previous rate of 2.25% once the temporary increase expires. The local school support tax is a component of the overall state sales and use tax rate.
Business License Fee
A reduction of the annual fee of $200 for a Nevada business license would be also delayed until July 1, 2013. The license fee is scheduled to decrease to $100 on July 1, 2011.
Tax on Net Proceeds of Minerals
The expiration of the requirement for an advance payment of the tax on the net proceeds of minerals would be delayed until June 30, 2013. Currently, the requirement expires on June 30, 2011. The tax on the net proceeds of minerals is based upon the estimated net proceeds and royalties of a mining operation.
Subscribers can view the bill.
A.B. 561, as passed by the Nevada Legislature on June 6, 2011